In such a scenario the interest rate is compensation for the risk of not getting the lended money back.
I agree that this sounds unfair, because it helps those with money to hoard more and more by lending it to borrowers and receiving an interest rate for that.
But the assumption that they do nothing for that is flawed; they need to risk their money for that gain!
From a radical point of view you could argue that this gain is only possible, because wealth is spread so unevenly. There are people who have money and can “afford” to lend it for an interest rate. You could further say that interest rates for loans are like “mico slavery”, because that interest is taken from workers who have no chance but to work and that interest rate is taken from their work without compensation, making them “part time slaves”.
But this discussion should be continued in the “social” section. We might need to have one created if there is not already such a category.
I’d really like to continue a discussion on that topic, because I think that this is an area where Nu can help a lot. Nu might not be able to solve the problem of uneven wealth distribution (albeit can ease some of its effects).
It can be able to reduce the minimum interest rate for loans (making it cheaper for those who need money), because loaning with Nu eliminates lots of participants in the loan business that normally take their share (decreasing the rate of "part time slavery).
With Nu cheaper loans (than in traditional loan busoness) are basically possible. This business needs to be developed, though…
…loan business with Nu can be good for people - for hose who need money and for those who own NuShares
You might forgive the polarizing words I chose in this post; I really like to stimulate a discussion
If you find it hard to forgive me that: Merry Christmas!