Flat rate of interest VS reducing balance rate of interest

Thank you for your support by helping us create content. MPESA TILL (BUY GOODS) - 5268371 PAYPAL - [email protected] #BusinessIdeasInKenya #BusinessIdeas As we get started in 2021, its crucial that we get our finances in order. In this episode, we talk about Difference between Flat rate of interest and reducing balance rate of interest. These are two banking terms that many borrowers do not bother to even look at, yet they form a very integral part of the cost of getting the loan. The bank employees or agents who deal with you, showcase mostly the glossy side of the image. They may not tell you the detailed conditions and other important things in advance. Therefore, it becomes necessary to get the insights well, before you land yourself into any trap. Flat interest rate, as the term implies, means an interest rate that is calculated on the full amount of the loan throughout its tenure without considering that monthly loan payments gradually reduce the principal amount. Reducing/ Diminishing balance rate means an interest rate that is calculated every month on the outstanding loan amount. VIDEO CHAPTERS Intro 00:00 What is flat interest 01:35 Is interest per annum or per month? 02:13 What is reducing balance interest 03:12 Practical look at flat interest 04:02 Practical look at reducing balance 08:01 Comparison flat vs reducing balance methods 12:01 ................................................................................................................................ Share this video with a friend:    • Flat rate of interest VS reducing balance ...   ..................................................................................................................... Support this Channel by becoming a sponsor . Email for sponsor deals: [email protected] Patreon:   / mumojames   MPESA Till: 5268371 (Kenya only) ...................................................................................................................... Watch next: AFFILIATE LINKS Start your website using Bluehost: http://bit.ly/blue_host_ Start your website for free using Wix: http://bit.ly/wix_links_ke MorningFame (Keyword Research Tool): http://bit.ly/morning_fame Use Tube Buddy free for 30 days (Keyword Research Tool): https://www.tubebuddy.com/freetrial?a... Start listening to audiobooks, first month free on Audible: https://amzn.to/2OtlV2N Over 100 Thumbnail Templates, you Can Use: https://www.awesomecreatoracademy.com... Get great royalty-free audio, and special effects for your videos(FIRST MONTH FREE): https://www.epidemicsound.com/referra... ........................................................................................................................................... Let’s connect: Instagram –   / mumo_mumo_   Twitter –   / mumo_mumo_   Facebook-   / mumoyoutuber   LinkedIn –   / jamesmumo   As always remember to innovate, create and grow. Amazon Affiliate Disclaimer: James Mumo/ Mumo Photography is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com Check out my website for blogs and more info: https://www.wjmumo.com/ FINANCIAL DISCLAIMER The information contained on this video and this Channel is not intended as, and shall not be understood or construed as, financial advice. I am not an attorney, accountant or financial advisor, nor am I holding myself out to be, and the information contained on this video and Channel is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.