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How Interest Is Calculated: Flat vs Reducing Rate
Confused about how loan interest is calculated? Key difference between Flat Rate and Reducing Rate interest: 🔹 Flat Rate of Interest 1-Interest is charged on the full loan amount for the entire tenure. 2-Even if you keep paying every month, the interest DOES NOT reduce. 3-This makes flat-rate loans appear cheaper but cost more overall. 🔹 ...
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