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What is Flat vs reducing rate?

Flat charges interest on the full amount every month.

Short answer

Consumer and vehicle loans quoted as flat.

Flat vs reducing rate when buying a loans (india)

Flat charges interest on the full amount every month.

Why it matters: A 10% flat rate is roughly 18% reducing.

Look for: Consumer and vehicle loans quoted as flat.

Full Loans (India) buying guide

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