Loan Requests posted on Minterest falls into one of the following categories:
As the name suggests, these are loans that are repayable periodically over the tenor of the loan. Repayments could either be made on a monthly, quarterly or semi-annual basis. You will receive interest and a portion of the principal at each repayment. These types of loans can either be fully amortised i.e. fully repaid when the last instalment is made or partially amortised i.e. a portion of the principal is repaid together with the last instalment.
This type of loans is repaid in one payment at the end of the tenor. You will receive the entire interest earned and the whole principal when repayment occurs.
Interest only loans are those where you will receive periodic interest payments with the entire principal being repaid at the end of the loan tenor.
Convertible loans are those that convert into shares in the company that has borrowed the money. When these loans are converted into shares, the loans are effectively repaid and investors subscribe for shares in the borrower immediately using the repayment proceeds.