How is the average interest rate calculated?

Updated 5 months ago

You’ll find this in the ‘Loan book’ section of your investor account. It’ll look like this:

This is the weighted average borrower interest rate of all of the loans you’re invested in, minus the loan servicing fee. It is ‘weighted’ because you’ll have invested more in loans at some rates than others, so we give those rates extra importance or ‘weight’. It does not take into account expected defaults. This is why your average loan interest rate will be different to your Net Annualised Return and the advertised projected return range on the website.

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