From time to time, when you review a crowdfunding project on our platform, you will notice the need to use:
the Factsheet to understand the background of the loan request;
the calculator to check the supposed repayment schedule for a specified amount;
the time when the project goes live for manual funding.
In the Factsheet, you will be able to see the planned repayment schedule but that repayment plan is based on the full loan itself. Most of the time, you are only concerned with the repayment plan for the amount you are interested to fund with.
But how are you going to get a feel for that amount's repayment schedule? That is where the repayment calculator comes in handy.
Investors are able to input the amount they are keen to invest with and request the calculator to do a calculation on the expected repayment plan.
The displayed results include:
Return per Annum
Return per Annum states the same return % that is displayed with the crowdfunding request, that is the Effective Interest Rate explained previously.
Tenor shows the amount of months the loan is being taken for.
Period is just a way of numbering the repayment dates.
Amount is the planned repayment sum on the said period.
Repayment Date is the planned date of repayment for the said period.
It is important to note that if you take the total sum of the amounts and compare it against the loan amount, you may notice that the % return of interest may differ from the Return per Annum.
This is normal especially if the SME makes repayments that contributes to both the interest and outstanding principal owed. If the SME insists to only make interest repayments and can repay the outstanding principal owed by the final repayment date; then yes, the % return of interest will likely be the same as the Return per Annum, factoring in the exact tenor of the loan.