What's the interest rate on a loan?

The interest rate is the annual percentage return you can earn by investing in a loan on Afranga.

Key Points:

• The gross interest rate varies from loan to loan and reflects the risk profile of the borrowing company.

• This rate is shown on the Loan Details Page and in the Key Investment Information Sheet (KIIS).

• Interest is paid based on the repayment schedule provided in each loan.

Where to Find It:
You can view the interest rate for any loan by:

• Clicking on the Loan ID in the Invest page

• Opening the Loan Details Page

• Reviewing the Key Investment Information Sheet (KIIS)

Calculating Net Interest:

• Net interest is the amount you actually receive after withholding tax (WHT) is deducted.

• While Afranga does not display the net interest rate directly, you can calculate it by subtracting the applicable WHT from the gross interest rate.

• Example: If a loan offers 14% gross interest and is subject to 10% WHT, the effective net return is 12.6%.

Withholding Tax (WHT):

• WHT is a standard tax collected by governments on income earned by non-residents.

• On Afranga, the loan originator is responsible for calculating, deducting, and remitting the tax.

• The WHT rate depends on the borrower's country — for example:

  • France: 0%

  • Bulgaria: 10%

  • Greece: 15%

For more details on how WHT applies to your investments, see our Withholding Tax article or consult your local tax advisor.

If you have any questions, feel free to reach out to us at support@afranga.com