Flat-interest loan in VyajPay

Flat interest is the simplest loan model. Total interest is calculated on the full principal for the full tenure, and the sum is divided into equal EMIs. Easy to explain, easy to track — but more expensive for the borrower than a reducing-balance loan.

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The math

EMI = (Principal + Principal × Rate / 100 × Tenure) / Tenure

Example
₹1,000 at 2% for 10 months. Total Interest = 1,000 × 0.02 × 10 = ₹200. EMI = 1,200 / 10 = ₹120/month.

Step-by-step

  1. Open Add Loan

    Borrower Detail → Add Loan.

  2. Pick Standard EMIs

    Choose Standard EMIs. In the advanced section, select Flat as the interest type.

  3. Enter amount, rate, tenure

    Amount must be greater than 0. Annual interest rate must be ≥ 0. Tenure (number of EMIs) is required.

  4. Set reminders

    Reminder unit (days or months) and frequency (every N).

  5. Create the loan

    VyajPay calculates EMI = (Principal + Total Interest) / Tenure and locks the schedule.

Frequently asked questions

Total Interest = Principal × Rate / 100 × Tenure. EMI = (Principal + Total Interest) / Tenure. Every EMI is the same.
Yes. Once you share the loan with the borrower (sync), they see the same EMI schedule and outstanding on their Received tab and Borrowed Ledger.
In a Flat loan, interest is charged on the original principal for the entire tenure, even after the borrower has paid down most of it. Reducing charges interest only on the unpaid balance, so total interest is lower.
Yes — record a payment that exceeds the EMI in the Loan Detail screen. Outstanding drops by the full amount paid. Closing the loan early stops further reminders.

Related guides

Loans — Reducing

Cheaper for the borrower at the same rate.

Loans — Interest-Only

No tenure required.

Loans overview

Compare all three.