How the business loan works
Formula. Instalment = P × r ÷ (1 − (1 + r)−n), where P is the loan, r the monthly rate and n the number of months.
Example. 15,000 at 6.5% a year for 36 months costs about 459.74 a month.
Tip. Some Gulf lenders quote a flat rate, charged on the full loan for the whole term. A 6.5% flat rate costs far more than 6.5% on a reducing balance, which this calculator uses.