by Miguelito » Sun Jul 17, 2016 9:54 am
LaudJohn wrote:RobW wrote:
As you know Lucan, 20-25% in the informal economy, per fuckin' month, is not unusual.
The lovely MFIs, who can afford to pay their investors 10% per annum, paid monthly, are not really that much better. But MFI is a sweet term and will attract investment from whiney European funds. .
I thought it was 10% application fee and 10% per month. Wow that is such a better rate to get.
Interesting how interest rates in the KOW seem to be quoted on a monthly basis (in simple terms), whereas in the real world they are quoted on an annual basis.
Also the monthly rate in the KOW is similar to the annual rate in many western countries.
Yes the traditional money lenders appear to have moved into shiny new shopfronts and have re-branded themselves as MFI's. Far more respectable than operating out of your house or market stall.
Not a bad business model.
Even banks charge about 1.5% per month for mortgages secured by hard title with a 40% deposit. Relatively low risk (provided the valuations are not corrupt) for a decent return, which is almost 80% per annum on a compound basis).
Actually, I believe a 1.5% monthly interest rate equals 19.56% per annum on a compound basis, however a 10% monthly rate would equal a 213.84% annual interest rate...
For the 6.5% monthly, if compounded, would equal 112.9% annual interest rate...
[quote="LaudJohn"][quote="RobW"]
As you know Lucan, 20-25% in the informal economy, per fuckin' month, is not unusual.
The lovely MFIs, who can afford to pay their investors 10% per annum, paid monthly, are not really that much better. But MFI is a sweet term and will attract investment from whiney European funds. .[/quote]
I thought it was 10% application fee and 10% per month. Wow that is such a better rate to get.
Interesting how interest rates in the KOW seem to be quoted on a monthly basis (in simple terms), whereas in the real world they are quoted on an annual basis.
Also the monthly rate in the KOW is similar to the annual rate in many western countries.
Yes the traditional money lenders appear to have moved into shiny new shopfronts and have re-branded themselves as MFI's. Far more respectable than operating out of your house or market stall.
Not a bad business model.
Even banks charge about 1.5% per month for mortgages secured by hard title with a 40% deposit. Relatively low risk (provided the valuations are not corrupt) for a decent return, which is almost 80% per annum on a compound basis).[/quote]
Actually, I believe a 1.5% monthly interest rate equals 19.56% per annum on a compound basis, however a 10% monthly rate would equal a 213.84% annual interest rate...
For the 6.5% monthly, if compounded, would equal 112.9% annual interest rate...