LAS loans require you to service the applicable interest rate on a month-by-month basis. There is no concept of monthly installments applicable to Arab League loans. For example, if you have borrowed Rs 2,50,000 at an interest rate of 10.5%, the daily rate of interest is −
10.5% / 365
Amount of daily interest –
0.0287% * 2,50,000
= INR 71.91/-
So for a month with 30 days, the applicable interest amount is –
71.91 * 30
= 2157.534 INR
You can click on the link given below to check the loan ledger.
Ledger: Kite – Zerodha’s fast and elegant trading platform
Visit our FAQ section to learn more about LAS.
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