Ahh, ok, so the $26k is the inclusive of the interest, not plus...

Ahh, ok, so the $26k is the inclusive of the interest, not plus interest - ok, that gets to 40%. Understood.

Still doesn't seem like a set of terms that are really viable in the medium term. Given that if you want to increase the volume of lending you would need to get more competitive in pricing - ie, it appears that its viable to sign $100mil (apparently) of people up on those terms, but is it really viable to get that to $500 million or $1 Billion. I suspect that as your pool of cash increases you would have a shrinking return, which might be offset by efficiency, but more likely would also be impacted by a higher advertising cost, given the relatively short life cycle of the loan.

Plus i doubt that there would be a significant recurring usage of this product, as if you have proven to a bank that you can make those kind of repayments, wouldn't they give you the loan at far superior rates circa 5 to 10%???

How can there be this much hype for a company that has a marginal business proposition?