Repayment calculator
What you would pay each month, and what you would repay altogether, worked out both ways so you can see the difference the method makes.
The loan
Which method is my loan using?
Ask. It is a normal question and any licensed lender will answer it. If the agreement gives you a single fixed monthly figure and the word “flat”, it is flat. If your statement shows the interest falling each month as the balance falls, it is reducing balance.
Most quick-loan apps in Nigeria use flat rate. Most microfinance banks and commercial banks use reducing balance. That is a large part of why an app that quotes a similar rate ends up costing much more.
A repayment you can actually make
The monthly figure is the one that matters day to day. Before you agree to it, look at what is left of your income after rent, food, transport and school fees, and ask whether that number still fits in a month where something goes wrong. A repayment that only works in a perfect month is how one loan turns into three.
Check the repayment against your income ›
This shows interest only. It does not include upfront fees, late fees or insurance. To see what a loan costs once fees are counted, use what this loan really costs.