Interest Rate
The annual cost of borrowing, typically charged on the drawn (utilized) balance of the loan facility. Interest accrues monthly and can be rolled up (added to the loan) or serviced (paid monthly).
Why it matters
Interest compounds on drawn funds. Longer projects with slow drawdown profiles accumulate significantly more interest.
In Profivo
Set per debt tranche. Interest is calculated monthly along an S-curve drawdown profile (the default, calibrated to within 1% of Aprao). Linear or custom schedules are available as alternative modes.