How do I compare a Flat Rate loan with a Reducing Rate loan? | Ask Banky

Editor-in-Chief Mohamed Salah

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Editor-in-Chief Mohamed Salah

How do I compare a Flat Rate loan with a Reducing Rate loan?

Asked by Banky team 2 months ago
Banky team Reviewed editorial answer

Don't compare the two rates directly.

Ask for the installment amount, the number of installments, the fees, and the total you will pay for the same amount and duration; this comparison will reveal the true cost.

The figures, fees and limits in this answer vary by bank and change over time — confirm them with your bank or the official source before acting.

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