The Lender has to bear the risk that the Borrower may not repay their debt. There are several factors used by Lenders to assess the risk of an investment such as: Borrower's past repayment history, Borrower's financial situation and assets pledged as collateral to the debt financing. In general, risker investments are expected to give higher return to Lenders to compensate for the risk taken. Besides, Lenders may bear also the currency risk.
The table below shows the highest and lowest rates of returns (excluding defaulted loans) and weighted average rate of returns (excluding defaulted loans), net of fee and charges to Lenders for our disbursed loans in each of th epast calendar year and the non-performing loan rates, computed as the ratio of loans outstanding over the total amount of loans disbursed in each of the past calendar years. The ratios presented are a snapshot of our statistics for each of the past calendar years and do not include the subsequent recoveries of loans outstanding.
Lenders should note that historical rates of returns may not reflect future returns.