For a loan tenure of 3 years, flat interest rate of 12.00% is approximately equals to 21.20% of reducing balance interest rate.
For a loan amount of 1,00,000 with a flat rate of 12.00% or reducing balance interest rate of 21.20%, total interest payment during 3 years is ₹36,000.
Loan Term = 3 Years |
Flat Interest Rate - 12.00% |
Effective Interest Rate = 21.20% |
Total Interest = ₹ 36,000 |
Total Repayment = ₹ 136,000 |