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| DPD Wise Ageing | NPA (%) |
|---|
Note: NPA % is calculated based on the cumulative disbursement.
The net returns on a portfolio is directly proportionate to the average loan tenure of Portfolio.
Illustrative Example: If the weighted annual rate of Interest is 18%, the average loan tenure is 18 months and the overall NPA rate is around 1.5%, then the returns work to 14.5% p.a., as follows.
Avg. Loan Tenure: 18
ROI: 18% p.a.
Platform Facilitation Fees: 4%
Overall NPA: 1.5%
Hence Net return: (18 – 1.5 – 4) = 12.5% p.a.