Flat Rate vs Reducing Balance: What’s the Difference?

Understanding loan interest is crucial. A Flat Rate charges interest on the original loan amount throughout the tenure, while a Reducing Balance rate charges interest only on the outstanding loan amount. Our FinBrooks calculator helps you see which one is more cost-effective for your specific needs.

Why compare before taking a loan?

• Cost Efficiency: Reducing balance loans are almost always cheaper in the long run.
• Financial Clarity: Know exactly how much interest you will pay before signing the loan agreement.
• Smart Borrowing: Use FinBrooks data to negotiate better terms with your lender.