Work out microfinance loan interest instantly with clear inputs, formula shown and shareable results.
Microfinance loans are repaid in small weekly instalments with interest usually quoted flat on the original amount. Because principal falls each week, the effective annual rate on the declining balance is substantially higher than the quoted figure.
Weekly instalment
Total = A(1 + flat × weeks/52); Weekly = Total / weeks
Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.
Tiny loan sizes and doorstep collection make servicing costs per account high relative to the amount lent.
The comparable rate against any bank or card quote, computed from the actual instalment stream.