We currently offer the following interest rates, depending on the loan to value (LTV)
3.95% APR with 20% LTV
7.75% APR with 33% LTV
9.95% APR with 50% LTV
The loans uses simple monthly interest starting from the origination date.
- Fixed rates, accruing monthly. Interest rates are fixed and payments are due monthly on the same day of the month that the loan is originated (or in some cases, the last day of the month if the month has fewer days).
- Example interest rates calculations:
- if the loan was originated on Jan 30th then the first payment would be Feb 28th and the next on Mar 30th, etc).
- The amount is simply: balance * (APR / 12) .
The principal balance can be reduced or eliminated by making prepayments. In order to prepay a loan completely, the payment amount must include the loan’s principal balance and interest (including the current month’s prorated interest). After successful prepayment, the loan would terminate and stop accruing interest, thus eliminating any future dues. Any change in the principal balance of the loan is accounted in interest accrual from the subsequent day onward. For example, if 75% of a loan’s principal balance is prepaid today, the interest accruing balance amount would be reduced to 25% from tomorrow onward.