How to assess different investments?

When considering investments in loans, there can be many variables depending on your needs and interests. The primary areas to review would definitely be the loan return (interest rate), underlying risk, and loan maturity (term).

• Interest Rate - What is the potential return I can earn from a given investment?
• Risk - How risky is the investment? Does the offered return outweigh the risks I would be undertaking?
• Maturity - How long will it take for the loan to be repaid? Is this in line with my investment time horizon?

Depending on your individual preferences, you might also investigate whether the loan is with a buyback guarantee, a group guarantee, what is the loan type, and country and look at other variables.

We help you overlook all the most critical variables in our investing guides for consumer, real estate, and agriculture loans.