Nominal interest rate
The nominal interest rate is used to calculate the earnings of each instalment. To know how much you will earn on your next instalment, divide the nominal interest rate by the number of payments that year (12 if the project has a monthly periodicity) and multiply it by the capital outstanding in that month.
The project term corresponds to how long a promoter takes to pay back all the invested capital plus interest.
Number of payments per year. Project promoters can pay on a monthly, quarterly or biannual basis.
Grace period of capital
The time period, in months, during which investors only receive interest on their invested capital. Longer gracer periods lead to higher earned interest.
The risk of a project is shown on a scale from A+ to D, where A+ represents lower risk and D represents a higher risk. The risk of the project is reflected in its interest rate. Additional guarantees, such as the pledge of the equipment, have a positive impact on projects' risk rating score.