Calculators / Flat vs Reducing Rate Calculator

Flat vs Reducing Rate Calculator

A "flat rate" loan almost always costs more than the same number suggests — see the real difference.

How this works

A "flat" rate charges interest on the full original amount for the entire tenure, even as you pay it down — a "10% flat" loan often costs about as much as an 18% reducing-rate one over a few years. This tool shows your flat-rate EMI next to the reducing rate that would actually cost the same, so you can compare like for like.

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Hi there! 👋 Hi! Ask me anything about our loans — I will answer from what our team has taught me.
BankLoanKart Assistant
Hi there! 👋 Hi! Ask me anything about our loans — I will answer from what our team has taught me.