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How is interest calculated?

How is interest calculated?

Loans on Ablrate are individual loans made by Lending Members to the Borrower with Ablrate acting as the Platform bringing those two together. Loans on Ablrate accrue daily and pay periodically. That means that for every day that you own a loan, you are owed the relevant amount of interest. This interest is normally paid monthly, but could also be quarterly, semi-annually or annually. This means that when you sell a loan on our Secondary Market, you will receive any due interest at the point of sale.

Interest is credited to your account on a specific date that can be seen on your Dashboard or in the Loan Details and is pro-rated to the amount of loan you have made to the Borrower. This money is credited even if it is not a normal business day and you can re-invest it straight away.

Due to the fact that that a fixed amount of interest is paid on specific dates, the amount of interest accruing each day can vary, depending upon how many days are in the relevant period, so a loan payment which occurs 28 days after the previous payment will accrue more interest each day than one in a 31 day period.