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  • Flat Rate Brief

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    MuhammadImranKhan
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    For a loan of Rs. 16,00,000 over 5 years, a flat interest rate of 10.50% is equivalent to an effective reducing balance interest rate of 18.04%. With either a 10.50% flat rate or 18.04% reducing balance rate, the total interest payment over the 5 years would be Rs. 840,000. The total repayment including principal and interest would be Rs. 2,440,000.

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    For a loan of Rs. 16,00,000 over 5 years, a flat interest rate of 10.50% is equivalent to an effective reducing balance interest rate of 18.04%. With either a 10.50% flat rate or 18.04% reducing balance rate, the total interest payment over the 5 years would be Rs. 840,000. The total repayment including principal and interest would be Rs. 2,440,000.

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    4 views1 page

    Flat Rate Brief

    Uploaded by

    MuhammadImranKhan
    For a loan of Rs. 16,00,000 over 5 years, a flat interest rate of 10.50% is equivalent to an effective reducing balance interest rate of 18.04%. With either a 10.50% flat rate or 18.04% reducing balance rate, the total interest payment over the 5 years would be Rs. 840,000. The total repayment including principal and interest would be Rs. 2,440,000.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    12/24/23, 11:29 PM Convert Flat Interest Rate to Reducing Balance Interest Rate

    Convert Flat Interest Rate to Reducing Balance Interest


    Rate
    This tool finds the effective interest rate for a flat rate interest loan.

    4.5k 158 156 204 76


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    86

    For a loan tenure of 5 years, flat interest rate of 10.50% is approximately equals to 18.04%
    of reducing balance interest rate.

    For a loan amount of 16,00,000 with a flat rate of 10.50% or reducing balance interest rate of
    18.04%, total interest payment during 5 years is ₹840,000.

    Loan Parameters Loan Term : 5 Years

    Loan Amount 16,00,000 ₹


    Flat Interest Rate : 10.50%
    Effective Interest Rate : 18.04%
    Loan Term 5 years
    Total Interest : ₹ 840,000
    Flat Interest Rate 10.50 %
    Total Repayment : ₹ 2,440,000

    Convert Rate

    Flat Rate EMI Calculator

    https://emi-calc.com/convert-flat-rate-to-reducing-balance-interest-rate.php?loan_amount=16%2C00%2C000&year_term=5&flat_rate=10.50&locale=en_IN&form_complete=1&currecny_symbol=₹&new… 1/5

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