Interest

Weekly Compound Interest#

Interest accrues on your loan and is capitalised weekly, meaning it is added to your Loan Balance, at each cycle close. From the second week, your interest is earning interest. Rates on Kasu are therefore shown as the Effective Interest Rate: the annual rate you earn with that weekly compounding already included, and with no fees deducted. See Weekly Interest Compounding.

Fixed and variable rates#

Most Lending Options carry a variable rate, which may change at any time. Where a fixed rate is offered, the rate is unchanged for its fixed period; the loan runs to a set end date, no Withdrawal Request can be made during the term, and repayment at expiry requires 28 days' notice (Fixed Rate Loans).