Flat vs Declining-Balance Interest: Same Rate, Different Cost
This lesson is part of the course
In this lesson
You price one small loan of Lumen Microfinance two ways, flat and on the declining balance, build the repayment schedule and measure the true annual rate of the flat loan.
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Lessons in this course
- Flat vs Declining-Balance Interest: Same Rate, Different Cost Locked
- APR & Effective Interest Rate with Fees and Compulsory Savings Locked
- Weekly vs Monthly Repayment Schedules with Due Dates Locked
- Group Lending: On-Time and Cumulative Repayment Rates Locked
- Portfolio at Risk: PAR30, PAR90 and the Ageing Table Locked
- Write-Offs and Loan Loss Provisioning by Ageing Bucket Locked
- Operational Self-Sufficiency, Cost per Borrower & Productivity Locked
- Yield Gap & Interest Rate Setting: Build the Required Rate Locked