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What is retained interest?

A loan with retained interest means that the borrower is not required to make any monthly interest payments. Instead, interest is added to the loan amount at the outset of the loan and paid out to investors at the interest due date by Mustard.

In some cases the retained interest is the full interest amount due over the entire loan term, in others it is part of the interest due throughout the loan term. In the case of the latter, retained interest will be paid to investors until it is exhausted and then the borrower will service the interest.