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