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Why would anyone want to make an interest free loan with an arms length party? I understand that from time to time these things happen, like KIVA, but seriously
by fleitz 14y ago
Why would anyone want to make an interest free loan with an arms length party? I understand that from time to time these things happen, like KIVA, but seriously why would I lend out my money for the opportunity of not getting it back?
- maaku 14y agoThen add appropriate interest representative of the risk you are taking on. When we say zero-interest, we're talking about basic interest/liquidity premium: the interest which is attached to loans simply because of the opportunity cost of lending, not the risk taken on.