The Target Rate is the average across the range of interest rates we hope to achieve on new loans. Target rates apply to all of our products, other than the Professional Investors who select their own loans.
Depending on the amount you invest you could receive a higher rate.
Higher risk loans tend to achieve higher rates.
The Target Rate is the average rate you should receive on your loans assuming they are performing as expected. This rate assumes your money is invested 100% of the time and doesn't take into account Defaults or the time your money is in the investment queue and not invested. You can see these effects by looking at the Actual Rate.
Good to know
As part of our compliance with industry regulators we produce an ‘Outcomes Statement’ which summarises how our loan book has performed each year. You can see this on our statistics page.