Your money will be invested in loan terms between 6 months and 5 years where your loans are continually repaid and reinvested at the rolling market rate.
|Investment Amount||Interest Rate||Est. Annual Interest|
|* The estimated annual interest is based on the investment term entered on the search form and, where this exceeds the product term, assumes the investment is rolled over and the rate remains the same.|
RateSetter manages the risk of people defaulting in two ways.
First, they are very cautious about who they lend to, carefully credit check, and select who is allowed to borrow through RateSetter.
Secondly, they manage risk via the Provision Fund, which is a pot of money, funded by Borrowers which compensates Lenders in the case of a late payment of a default on a loan. It is important to understand that the Provision Fund is not a guarantee and your capital is at risk.
Assumes funds are reinvested. Gross annualised rate, paid on withdrawal