Our lending partner charges simple interest on your outstanding loan balance on a daily basis. Your total EMI for a given month would be the sum of the daily interest amount.
For Example:
If your current outstanding loan is ₹ 1 lac at 12.75% interest rate. Then your interest for the first day of the month would be 1/360 * 12.75% * ₹1 Lac which amounts to ₹35.
On the second day if you deposit ₹ 20,000 into your loan account. Then your interest for the second day of the month would be 1/360 * 12.75% * ₹80,000 which amounts to ₹28.
In this example, the total EMI for the month would be (₹35 * 1 day + ₹28 * 29 days) which amounts to ₹847 for the said month.
