Compare the three types
| Type | Tenure required? | EMI formula | Use when |
|---|---|---|---|
| Flat | Yes | (P + P·R·T/100) / T | Simple interest with fixed equal EMIs. |
| Reducing | Yes | P·r·(1+r)^N / ((1+r)^N−1) | Bank-style EMI on the unpaid balance. |
| Interest-Only | No | P · R / 100 per period | Lend with interest only; principal returned at end. |
Dedicated pages: Flat · Reducing · Interest-Only.
Before you start
- Borrower must exist.
- Amount > 0, interest rate ≥ 0.
- For Flat and Reducing, tenure (EMI count) is required.
Validation banner
If a required field is missing, VyajPay disables the Create Loan button and shows: "Finish required details".
Step-by-step
Open Borrower Detail
From the Borrowers tab, tap a borrower.Tap Add Loan
The Add Loan screen opens.Choose the loan profile
Pick Interest Only or Standard EMIs. Standard supports a Flat or Reducing calculation inside the advanced section.Enter required fields
Amount (must be greater than 0), annual interest rate (must be ≥ 0), start date, reminder frequency. For Standard, also enter the tenure (number of EMIs).Create the loan
Tap Create Loan. VyajPay computes the EMI for Flat and Reducing, or locks the fixed monthly interest for Interest-Only, and schedules reminders.
Frequently asked questions
Flat = simple flat-interest math, easy to explain. Reducing = bank-style EMI, interest on the unpaid balance. Interest-Only = perpetual interest with no fixed term; principal is repaid later.
Interest-Only loans are open-ended by design. Interest is computed per period as Principal × Rate/100. You can optionally enable a fixed duration, but it is not required to save the loan.
No. The interest type is locked at creation. To switch, close the loan and create a new one with the new type.
Flat EMI = (Principal + Principal × Rate/100 × Tenure) / Tenure. Reducing EMI uses the standard formula with monthly rate r = annualRate/100/12 and EMI = P × r × (1+r)^N / ((1+r)^N − 1).
Loan fields (rate, amount, type) sync as-edited to the borrower, but VyajPay flags significant changes. Best practice: get the borrower’s in-app approval (or settle and create a new loan) for material changes.