In Flat Interest Rate loans, interest is calculated on the initial principal amount througout the loan tenure.
In Reducing Balance Interest Rate loans, interest is calculated on the remaining principal amount at any time.
Flat interest rate is normally used by vehicle finance companies.Flat Rate Calculations |
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|---|---|
Flat Interest Rate - 10.00% |
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Loan Amount = 1,00,000 |
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EMI = 3,611 |
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Total Interest = 30,000 |
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Total Payments = 1,30,000 |
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Periods = 36 months |
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Last EMI Date = 21-October-2027 |
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| Check Amortization Table | |
Reducing Balance Rate Calculations |
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|---|---|
Reducing Balance Rate - 17.92% |
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Loan Amount = 1,00,000 |
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EMI = 3,611 |
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Total Interest = 30,004 |
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Total Payments = 1,30,004 |
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Periods = 36 months |
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Last EMI Date = 21-October-2027 |
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| Check Amortization Table | |
EMI Difference |
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|---|---|
| Flat Rate Calculations | Reducing Balance Rate Calculations |
| 10.00% | 17.92% |
| 3,611 | 3,611 |
0 |
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Total Interest Difference |
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|---|---|
| Flat Rate Calculations | Reducing Balance Rate Calculations |
| 10.00% | 17.92% |
| 30,000 | 30,004 |
4 |
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Repayment Chart |
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Flat Rate - 10.00% |
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Repayment Chart |
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|---|---|
Reducing Balance Rate - 17.92% |
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