About your return

What can affect the return you receive?

When you invest via FOLK2FOLK, the interest rate on your chosen loan is fixed at the time of investment.  While the rate is fixed, your overall return may vary depending on a few factors.

What can influence your return?

Here are some of the reasons your return might be higher, lower, or simply not quite what you expected:

• Early borrower repayment
  If a borrower repays their loan early, your investment will end before the full loan term, and you’ll stop receiving monthly interest payments.
• Selling on the Secondary Market
  You may choose to sell your investment before the end of the loan term. Learn how to sell via the Secondary Market
• Late interest payments
  If the borrower is late making an interest payment, your monthly income could be delayed.
• Loan default
  If a borrower is unable to pay interest or repay capital, your return may be affected — either in terms of reduced income, a delay, or potential loss. FOLK2FOLK actively manages recovery in these situations to try to minimise loss. What happens when a loan defaults? How we maximise investor recovery
• Time between investments
  If there’s a gap between one investment ending and you selecting a new one, you won’t receive interest during that period. This can affect your annualised return.
• Returns are not guaranteed

It’s important to remember:

• The interest rate on each investment is fixed
• But receiving the full interest and capital back isn’t guaranteed, your capital is at risk
• All returns depend on the borrower meeting their obligations