Early Repayment pushing up fees to an equivalent 2.15%
I just work out that because of early repayments, the fees charged by Harmoney works out to an equivalent 2.15% instead of 1.25%.
Some background:
Invested for about 6 months and now well over 1000 loans (minimal amounts each).
Say my total repayments received up to now - interest and capital (without early repayment) - is $X. The total fees I have paid if expressed as a percentage of that $X works out to be 2.15%.
As a note to the earlier posts on fees being less than 1.25% in total.
If you take your total fees and divide it by the total of "capital repayments" and interest, it will be less than 1.25%.
This is because "capital repayments" not only includes the genuine early repayments (where the 1.25% applies) but also those loans where the borrower changes his/her mind after getting it filled (we do not pay fees on these).