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Post by Deleted on Nov 4, 2015 17:48:39 GMT
As per payment schedule it seems that loans are more profitable to invest in only on first payment and then it's better to quit that loan and move on? for example, in below loan it seems that the interest is reducing, so consequently I'll get less interest in next payments??  |
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oldgrumpy
Member of DD Central
Posts: 5,087 
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Post by oldgrumpy on Nov 4, 2015 17:51:58 GMT
Yes, less interest because each month the borrower owes you less. The total interest is not shared out and equalised across all the payments.
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Post by Deleted on Nov 4, 2015 18:14:31 GMT
Yes, less interest because each month the borrower owes you less. The total interest is not shared out and equalised across all the payments. So if borrower borrows €1000 @ 12% (and I buy whole 1000) even though it'll be shown as reducing interest in payments page, investors will get €10 per month?
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oldgrumpy
Member of DD Central
Posts: 5,087
Likes: 3,233
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Post by oldgrumpy on Nov 4, 2015 18:27:09 GMT
I presume you would if none of the principal were to be paid back each month. What does Twino actually do?
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,317
Likes: 893
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Post by JamesFrance on Nov 5, 2015 8:30:47 GMT
Yes the interest rate stays the same, but the amount of monthly interest reduces because the loan outstanding is less as repayments are made each month.
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Post by Deleted on Nov 5, 2015 8:44:36 GMT
Yeah,
I don't doubt that interest rate stays same, with reducing interest, does that mean we get less interest (in terms of € not %) every month?
Does Twino keep excess interest in it's account and pay out of it every month?
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,317
Likes: 893
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Post by JamesFrance on Nov 5, 2015 9:01:58 GMT
I don't doubt that interest rate stays same, with reducing interest, does that mean we get less interest (in terms of € not %) every month? Only if you don't reinvest the repayments into more loans.
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