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 |