NAR

Definition of Net Annualized Return (NAR):

Net Annualized Return (NAR) represents annualized net return of a loan portfolio where monthly income (consisting of interest component of the EMI, penalty and late fee charges minus any expenses such as investment fees and losses) is divided by the principal outstanding for the month. Losses are determined by the principle overdue for EMI's which are 180 days past their due date. 

The platform's NAR is calculated as the weighted average (based on amount invested) of the NAR for all individual lenders who have invested until the previous month end.