Why does the borrower pay 8.5% when the Social investor only gets a return of 3.5%?
The investments that you make are received by Rang De’s field partners who are responsible for identifying borrowers, disbursing loans and collecting repayments. The Field partner incurs expenses for all this and the 5% the borrower pays is just enough to manage these costs. Thus the borrower pays a cumulative interest of 8.5% on the loan.
