Explanation on Interest Calculation for Borrowers and Sureties
1. Interest payable per month is calculated using the effective interest rate method (effective interest rate x outstanding balance).
2. Interest payable is NOT calculated using the flat rate method (flat interest rate x original loan amount).
3. If a borrower does not repay promptly, the interest payable and outstanding loan balance will increase.
4. The more missed repayments, the higher the amount that will need to be repaid and the longer it will take to repay.
|
LOAN TYPE |
L1 |
L2 |
L3 |
L4 |
L5 |
L7 |
L8 |
L9 |
L11 |
L12 |
L13 |
|
FLAT RATE |
6.50% |
6.50% |
6.00% |
4.00% |
4.00% |
6.00% |
6.00% |
6.50% |
6.50% |
6.50% |
2.20% |
|
EFFECTIVE INTEREST RATE |
|||||||||||
|
TENOR IN MONTHS |
|
|
|
|
|
|
|
|
|
|
|
|
12 |
11.82% |
11.82% |
10.93% |
7.31% |
7.31% |
10.93% |
10.93% |
11.82% |
11.82% |
11.82% |
4.05% |
|
24 |
12.04% |
|
|
7.51% |
7.51% |
11.15% |
11.15% |
12.04% |
12.04% |
12.04% |
4.17% |
|
36 |
11.97% |
|
|
7.54% |
7.54% |
11.10% |
11.10% |
11.97% |
11.97% |
11.97% |
4.21% |
|
48 |
11.86% |
|
|
7.49% |
7.49% |
11.01% |
11.01% |
11.86% |
11.86% |
11.86% |
4.20% |
|
60 |
11.69% |
|
|
7.42% |
7.42% |
10.87% |
10.87% |
11.69% |
11.69% |
11.69% |
4.19% |
|
72 |
|
|
|
|
|
|
|
|
|
11.58% |
|
|
84 |
|
|
|
|
|
|
|
|
|
11.43% |
|
