# Monthly Flat Rate/Actual Annual Interest Rate Calculator

## Please enter the following Monthly Flat Rate Loan information

Monthly Flat Rate/Actual Annual Interest Rate Calculator
Monthly Flat Rate/Actual Annual Interest Rate Calculation Results
"Monthly Flat Rate/Actual Annual Interest Rate Calculator" Supplementary Information

## What is a "Monthly Flat Rate/Actual Annual Interest Rate Calculator"?

The "Monthly Flat Rate/Actual Annual Interest Rate Calculator" is used to convert the Monthly Flat Rate to the actual annual interest rate for comparison of different loans, without needing to use MS Excel (spreadsheet).

Loans Calculated Using Monthly Flat Rate

The formula for calculating loans using monthly flat rate is as follows:

• A is the monthly repayment amount
• P is the loan amount (how much money you borrowed)
• r is the monthly interest rate of the loan (%)
• n is the number of repayment months
Example:

I borrowed ₹120,000 from the bank, if the monthly flat rate is 0.14%, to be repaid over 12 months, then my monthly instalment amount is:

For this example, borrower borrow loan with 0.14% monthly flat rate and 12 months repayment period, the actual annual interest rate is 3.09%

Please note that the monthly flat rate can be converted to the actual annual interest rate. When comparing loans, the annual interest rate should be used for comparison, and the lower actual annual interest rate, the better.

For convenience, a Loan Calculator has been provided on this website.

So how can the monthly flat rate be converted to the actual annual interest rate?

First, we need to understand the loan calculation method using the annual interest rate. To facilitate calculation, I will define the following variables:

• P0 is the total loan amount (how much money you borrowed)
• R is the Annual Interest Rate
• r = R/12 is the monthly interest rate
• A is the monthly repayment amount
• n is the number of repayment months
In the first month, the principal you actually repaid is:

Therefore, the outstanding principal for the first month is:

Rewriting this, we get:

From the above formula, similarly, we can write it as:

We need to find a way to eliminate the n + 1 term, try:

Substitute (3) into (2):

After rearranging:

Substitute (4) into (5):

So (7) can also be written as:

Represents the outstanding loan for n-th month, which means when it comes to the last month this value is 0. So (8) can also be written as:

After rearranging:

Finally, r can be calculated, then multiply r by 12 to get the actual annual interest rate for the monthly flat interest loan!

The calculation results from the "Monthly Flat Interest Rate/Effective Annual Interest Rate Calculator" are for reference only, loan details must be confirmed with the relevant bank or financial institution first!

The above calculation for converting monthly flat rate to actual annual interest rate is referenced from the following website:
https://mitchellt.com/math/2018/08/11/derivation-of-monthly-payment-formula.html
Credit score rating in India

Credit score rating (CIBIL score) is very important when you borrow money, it is because if your credit score rating is too low, you may not be able to borrow money! For more information about credit score rating, please visit the below websites:
CIBIL Score - How to Check, Calculate and Improve Credit Score
CIBIL Score | Credit Score | Credit Report | Loan Solutions | CIBIL

List of banks in India

No. Bank Name Bank website
2 Axis Bank https://www.axisbank.com/
3 Bank of Baroda https://www.bankofbaroda.in/
4 Bank of India https://www.bankofindia.co.in/
5 Bank of Maharashtra https://www.bankofmaharashtra.in/
6 Canara Bank https://www.canarabank.com/
7 Central Bank of India https://www.centralbankofindia.co.in/
8 HDFC Bank https://www.hdfcbank.com/
9 ICICI Bank https://www.icicibank.com/
10 IDBI Bank https://www.idbibank.in/
11 Indian Bank https://www.indianbank.in/
12 Indian Overseas Bank https://www.iob.in/
13 Jammu & Kashmir Bank Ltd https://www.jkbank.com/
14 Punjab and Sind Bank https://www.psbindia.com/
15 Punjab National Bank https://www.pnbindia.in/
16 State Bank of India https://www.sbi.co.in/
17 UCO Bank https://www.ucobank.com/
18 Union Bank of India https://www.unionbankofindia.co.in/
19 Yes Bank Ltd. https://www.yesbank.in/
20 Saptagiri Grameena Bank https://www.saptagirigrameenabank.in/
21 Arunachal Pradesh Rural Bank https://www.apruralbank.co.in/
22 Dakshin Bihar Gramin Bank https://www.dbgb.in/
23 Uttar Bihar Gramin Bank https://www.ubgb.in/
24 Chhattisgarh Rajya Gramin Bank https://www.cgbank.in/
25 Baroda Gujarat Gramin Bank https://www.bggb.in/
26 Saurashtra Gramin Bank https://www.sgbrrb.org/
27 Sarva Haryana GB https://shgb.co.in/
28 Karnataka Gramin Bank https://karnatakagraminbank.com/
29 Kerala GB https://keralagbank.com/
30 Meghalaya Rural Bank http://www.meghalayaruralbank.co.in/
31 Mizoram Rural Bank https://www.mizoramruralbank.in/
32 RRB Puduvai Bharathiar GB https://www.puduvaibharathiargramabank.in/
33 RRB Punjab GB https://pgb.org.in/
34 Baroda Rajasthan Kshetriya Gramin Bank https://pgb.org.in/
35 Rajasthan Marudhara Gramin Bank https://www.rmgb.in/
36 Andhra Pradesh Grameena Vikas Bank https://www.apgvbank.in/
37 Telangana Grameena Bank https://tgbhyd.in/
38 Prathama U.P. Gramin Bank https://prathamaupbank.com/
39 Prathama UP GB https://prathamaupbank.com/
40 Uttarakhand Gramin Bank https://www.uttarakhandgraminbank.com/
41 UTTARBANGA KSHETRIYA GRAMIN BANK https://www.ubkgb.org/
42 Tamilnad Mercantile Bank Ltd https://www.tmb.in/
43 SOUTH INDIAN BANK https://www.southindianbank.com/
44 City Union Bank https://www.cityunionbank.com/
This "Monthly Flat Rate/Actual Annual Interest Rate Calculator" allows you to easily convert the monthly flat rate to the actual annual interest rate for loan comparison. Please help to share if you find this "Monthly Flat Rate/Actual Annual Interest Rate Calculator" useful! Thank you!

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