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Loan Cost & EMI

Flat vs Reducing Rate Compare

Same loan amount, stated rate और tenure — Flat vs Reducing calculation side-by-side.

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Flat Rate

Stated Rate
10% p.a. (Flat)
Approx EMI
₹18,056
Total Interest
₹1,50,000
Total Repayment
₹6,50,000

Reducing Rate

Stated Rate
10% p.a. (Reducing)
Approx EMI
₹16,134
Total Interest
₹80,809
Total Repayment
₹5,80,809

Difference

Approx difference in Total Interest
≈ ₹69,191
Approx difference in Total Repayment
≈ ₹69,191

Same stated interest rate होने के बावजूद Flat और Reducing calculation method की वजह से Total Interest और Total Repayment अलग हो सकते हैं.

₹5,00,000 के 3 years loan पर same 10% stated rate में Flat calculation का estimated total interest ₹1,50,000 और Reducing calculation का लगभग ₹80,809 है. Difference ≈ ₹69,191

FLAT RATE

Interest original loan amount के आधार पर पूरे tenure के लिए calculate किया जाता है.

REDUCING RATE

Interest outstanding principal पर calculate होता है, इसलिए principal कम होने के साथ interest base भी घटता है.

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