Lending through your IFISA is exactly the same process as through your Standard Account.
Funds in your Innovative Finance ISA will only start to generate interest upon draw down of a loan by the borrower unless Instant Returns are enabled on the loan.
Do not forget Ablrate’s Instant Returns are also a tax free gain on funds lent through your IFISA.
PLEASE REMEMBER, REGARDLESS OF THE TAX BENEFITS, CAPITAL IS AT RISK
Whether investments are held within a IFISA or in a general account, they are not covered by the FSCS; the government backed deposit insurance scheme that protects bank deposits including Cash ISAs.