Effective Interest Rate (EIR) vs Flat Interest
It is essential to think about the flat price and effective rate of interest (EIR) when you compare unsecured loans. The rate that is flat the amount you employ to determine exactly how much interest you borrowed from regarding the loan. As an example, you will be required to pay S$500 in interest per year for the next 5 years if you take out a S$10,000 loan with a 5% flat interest rate and a 5-year tenure.
EIR on the other hand, represents the genuine financial price of the loan and makes up about processing fees along with your loan repayment routine. Continue reading