Loan Rate

Each loan typically has an associated interest rate, commonly referred to as the "Rate." The interest rate represents the cost of borrowing and is expressed as a percentage of the loan amount.

the loan rate can be specified by the lender when creating an offer, or it can be set as a default rate determined by the platform. Each collection or category of loans may have different default rates set by the platform. The platform may adjust these default rates periodically based on market conditions or other factors. This allows for flexibility in accommodating different lending preferences and market dynamics. Lenders can choose to set their own rates or rely on the default rates provided by the platform when creating loan offers.

When it comes to refinancing, there are several rules related to the rate. Here are a few common rules:

1. refinanceByLender/refinanceDebtTransferByNewLender/refinanceDebtTransferByOther: when a borrower passively accepts a refinancing offer, it is generally expected that the new interest rate (new rate) will be lower than the borrower's existing interest rate (previous rate). This is to ensure that the refinancing benefits the borrower by providing more favorable loan terms.

2. refinanceByBorrower: When a borrower initiates a debt transfer, they may have the freedom to choose the new interest rate (new rate) for the transferred debt. This allows the borrower to negotiate and select a rate that is more favorable to them compared to the previous rate.