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How much difference will compounding my interest make?
On a £5000 loan part @ 7.2%pa over 12 months, compounded monthly, you will earn an extra £12.12. This is an effective annualized rate of 7.44%*.
Here at Kuflink, we have created an algorithm that mimics the effect of compounding interest. The compound interest is based on a calculation that becomes payable upon a triggering event involving capital reduction. These cases include partial (pro-rata basis), full repayment or sale on the secondary market.
Lender/Investor Risk Warning
*Don’t invest unless you’re prepared to lose money. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong. Take 2 mins to learn more.