Microfinance
Micro-loan calculator (flat vs declining)
Most MFIs quote a FLAT rate — see the instalment and the true effective (declining) rate.
Monthly instalment
Rs 10,667
Total interest (flat)
Rs 56,000
Effective rate (declining)
24.92%
true APR — what you actually pay
Total payable
Rs 2,56,000
A flat rate looks low but the effective declining-balance rate is almost double, because you pay interest on the full amount throughout.
Figures are estimates for guidance only — confirm exact terms with the bank or insurer.