All tools are free — no sign-up, no paywall. Know exactly what a loan costs before you sign. New: compare two loans side by side and see which one costs less over the full term. Check your affordability before applying — lenders use the 40% debt-to-income rule to approve or reject you. Understanding flat rate vs reducing balance interest can save you thousands. Read our guide in the Learn section. CRB listings can block your loan applications for up to 5 years. Learn how the CRB works and how to protect your credit record. All tools are free — no sign-up, no paywall. Know exactly what a loan costs before you sign. New: compare two loans side by side and see which one costs less over the full term. Check your affordability before applying — lenders use the 40% debt-to-income rule to approve or reject you. Understanding flat rate vs reducing balance interest can save you thousands. Read our guide in the Learn section. CRB listings can block your loan applications for up to 5 years. Learn how the CRB works and how to protect your credit record.

1 Terms

Financial Terms Glossary

Every loan term explained clearly, with real examples.

All A C D F G P R S T

F 1 term

Flat Rate Interest

Interest calculated on the original loan amount throughout the entire repayment period — even as you pay down the principal. This means you pay interest on money you no longer owe.

Flat rate loans cost significantly more than reducing balance loans. A 10% flat rate is roughly equivalent to 18–20% reducing balance.

Example: You borrow KES 100,000 at 10% flat rate for 12 months. Interest = KES 100,000 × 10% = KES 10,000. You pay this KES 10,000 regardless of how much you have already repaid.