How differentiated payments work

All our loans are repaid with differentiated payments: the principal is split equally across the months, and interest is charged each month only on the principal still owed.

Example: 10,000,000 soum, 12 months, 4% a month. Each month 833,333 soum of principal is repaid. In the first month interest is charged on the whole amount: 10,000,000 × 4% = 400,000 soum, so the first payment is 1,233,333 soum.

In the second month the debt is down to 9,166,667 soum and the interest is lower too: 366,667 soum. So each payment is a little smaller than the one before, and the last one is 866,667 soum.

Over the whole term the interest adds up to 2,600,000 soum and the full cost of the loan is 12,600,000 soum. There are no fees, so that is the full cost.

The advantage: the debt falls quickly and the total interest is lower than with equal (annuity) payments. The drawback: the first payments are larger, so work out your debt burden from the first payment.

The payment schedule in our calculator shows the interest, payment and remaining balance for every month. The figures are estimates; the exact schedule is given in the contract.