There are generally two types of rate of interest prevailing
in India
Flat interest rate
Diminishing or reducing interest rate
Flat interest rate- in this type of rate of interest, the
borrower needs to pay interest on all the tenure. Means the borrower need to
pay interest on the amount already paid via EMI. Like if A has borrowed Rs.
100000 on 10% flat interest rate for tenure of 5 years, he will pay 2500 rs.
EMI for the 60 months. In this term the
borrower pays Rs. 50000 as interest on Rs. 100000 loan. Private financial
institute often offer flat rate of interest.
Diminishing interest rate- in
this type of rate of interest, the borrower needs to pay interest on the remaining
amount and not the full. Like if a has borrowed Rs. 100000 on 10% diminishing rate
of interest for a tenure of 5 years, the EMI will be Rs. 2125. That means the borrower
pays Rs. 27500 as interest on Rs. 100000 loan.
How to convert flat rate of interest
on diminishing rate of interest
This includes complex
calculations. But this is an excel based calculator which will make complex
calculations very easy.
how to download
ReplyDeleteHow to Download ?
ReplyDeleteCan you please provide the complete repayment schedule for flat rate interest.
ReplyDeleteplease try to provide me the repayment schedule for flat rate interest.