Watch Effective Interest Rate and Flat

Watch effective interest rate and a flat : Watch effective interest rate and a flat : Something that must be watch and must be note before apply a credit loans is an instrument in installment repayment system in banking. this instrument called as an effective and flat. as the easy word to say about the meaning of that instrument ;

Effective calculation of the instrument means "the remaining credit limit has been paid out multiplied by the interest", and the Flat means "interest multiplied by the initial credit limit".

The remaining credit limit means in the first month after we were given credit loan each month then we will immediately pay the loan installment credit. means that next month the rest of our credit will be reduced because we have been paying the loan installments. and an effective intended to calculate the remaining credit that has been paid is based on the value or the rest of the final amount is multiplied by the interest payments that have been determined from the initial.

While Flat means mortgage payments will always be calculated based on the initial count of loans approved by banks, credit ceiling approved will be multiplied by the interest that has been determined from the start lending.

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