Lend like a pro #6- Your Repayments
13 Jul 2022
We’ll get into a very interesting topic today – Your Repayments, and what to do with it!
Once you lend to a project on the Fundkiss platform, you receive monthly repayments. The sweet returns on your investments into the growth of our local SMEs.
Here’s everything you need to know.
How will I receive my repayments?
Once a project gets funded successfully, repayments begin shortly after. Every month, you will receive a monthly repayment from the borrower that includes interest and capital.
The repayments are deposited into your Fundkiss Account, accessible through your Lender Dashboard.
There on, you have 2 options:
- Withdraw your money to your bank account. There are no fees on withdrawal.
- Reinvest your repayments to other projects straight from your Fundkiss Account.
Why should I reinvest my repayments?
Two words – Compound Interest! The holy grail of investing.
Reinvesting your earnings allows you to put your repaid capital along with the newly earned interest income back to work immediately and that amplifies your returns.
This way, your investment will generate earnings from both its initial principal and the accumulated earnings from preceding periods!
What about taxes on earned interest income?
We have great news for you – interest income earned from lending on fundkiss.mu is taxed at just 3%.
It is, however, the lender’s responsibility to declare their interest income in their annual tax filings.
Before the end of each tax year, you will receive a Tax Certificate from Fundkiss. You may use the information from this certificate, along with the investment summary from your Account to declare your interest income in your annual tax filing.
Read more about P2P lending and taxation in the blog article linked below.
And that concludes our lend like a pro series!
We hope you feel empowered with essential knowledge to begin lending like a pro.
Why not begin lending today? Check out the ongoing projects and begin lending with as little as MUR 5000!