Home / Interest & rates
Rate arrangementThere are two kinds of loan on this platform, and they are not priced the same way. This page explains both, so you always know whose rate you are agreeing to.
We lend our own money at the INSTABUXX rate. It is the same for everyone and it is published here.
| Interest type | Variable |
| Term | Daily |
| Rate | 2.75% per day |
| Base interest type | Rate |
| Base interest | 10% of the loan |
| Base re-applied? | Yes — once, on default |
| Re-applied on | The original amount |
| At term expiry | Default rate applies |
| Default rate | 4% per day |
| Default charged on | The original amount |
A lender on our platform is using their own money, so they set their own terms. The rate can be higher or lower than ours.
You will always see the lender's exact terms in the agreement email before you sign, and on the loan in your dashboard. Nothing is applied that you have not seen.
Every lender configures these before their loans go out. Understanding them means you can compare one lender against another.
Fixed — the rate is charged once for the term,
however long the loan runs inside it.
Variable — the rate is charged for every term
that passes, so the cost grows over time. This is what INSTABUXX uses.
The period the rate is charged over: daily (1 day), weekly (7), fortnightly (14) or monthly (30). A 10% weekly rate is very different from 10% monthly — always check the term, not just the number.
The percentage charged for each term. Read it together with the term above — the number on its own tells you very little. INSTABUXX charges 2.75% per day.
A charge applied when the loan is funded, separate from the per-term
rate. It can be a rate (a percentage of what you
borrow) or a fixed amount (a flat kina fee).
The lender also chooses whether it is charged only once
or re-applied each time a term expires unpaid —
and if re-applied as a rate, whether that is on the
total payable or the original amount.
INSTABUXX re-applies its 10% base once, when a loan defaults.
What happens if the due date passes unpaid:
Rollover — your whole balance becomes a new loan
on the same terms.
Add interest — one more term's interest is
charged on the original amount.
Default rate — the rate switches to the
lender's default rate.
The rate charged once a loan has defaulted, and whether it applies to the total payable (interest on interest — more expensive) or the original amount only. INSTABUXX charges 4% per day on the original amount.
The terms are recorded on your loan the moment you apply. If the lender later changes their rate card, your existing loan is not affected — only new loans use the new terms.
All borrowed for 14 days. This is why the term and the type matter as much as the headline percentage.
| Lender's terms | Type | Term | Rate | Base interest | Interest | You repay |
|---|---|---|---|---|---|---|
| INSTABUXX | Variable | Daily | 2.75% | 10%, re-applied on default | K485.00 | K1,485.00 |
| Example lender A | Variable | Weekly | 8% | None | K160.00 | K1,160.00 |
| Example lender B | Fixed | Fortnightly | 15% | K50 flat, once | K200.00 | K1,200.00 |
| Example lender C | Fixed | Monthly | 20% | None | K200.00 | K1,200.00 |
Illustrative figures for lenders A, B and C. Real lender rates vary — the terms on your loan are always shown to you before you sign.
Whatever the rate, your limit still applies. Your total repayable must stay under 60% of your take-home pay, so a more expensive lender simply means you can borrow less from them. Check with the calculator.
If you apply without a Lender ID, INSTABUXX funds the loan at the published INSTABUXX rate. If you enter a lender's LUID, that lender's own terms apply — and they are set out in full in the agreement email you have to sign before the loan is reviewed.
No. Your terms are recorded against your loan when you apply. A lender can change their rate card at any time, but it only affects loans taken out after the change.
Not necessarily — the term matters. 10% per week is far more expensive than 10% per month. Compare the total repayable, which the calculator and your agreement both show you.
It means default interest is calculated on your whole outstanding balance, including interest already accrued, rather than just on the amount you originally borrowed. It compounds faster, so it is the more expensive of the two options.
Base interest is a charge applied when your loan is funded, on top of the per-term rate. It is either a percentage of what you borrow or a flat kina fee. Whether it can be charged again depends on the lender: some charge it only once, others re-apply it every time a term expires unpaid. INSTABUXX charges 10% up front and re-applies that 10% once, at the moment a loan defaults. Your agreement always states which applies.
If a lender's expiry rule is rollover and you do not pay by the due date, your entire balance becomes the principal of a brand-new loan on the same terms. Interest then starts accruing on that larger figure, so a rollover is expensive — pay on time.
Register as a lender, then open My Interest Terms on your dashboard. You will see a worked example update as you change each setting. More about lending.
Run your numbers, then apply with confidence.