What is the difference between a flat rate and a reducing balance loan?

With a flat rate, interest is charged on the full amount for the whole loan even as you repay it, so it costs much more than the same reducing-balance rate. For example, 5% a month flat over 12 months is about 97% a year in true terms.

How do I know if a loan app is licensed?

Search its name on TrustCheck's licence check. Loan apps in Ghana must be licensed or approved by the Bank of Ghana, which also publishes lists of unlicensed apps.

Loan calculator

See your monthly repayment, the total interest, and the true yearly cost of a loan from a bank, microfinance company or loan app.

Your loan

Amount (GH₵)

Months to repay

Interest rate (%)

Rate is

Interest type

Monthly repayment GH₵487.44 Total interest GH₵849.23 · Total repaid GH₵5,849.23 · True yearly rate (APR) 30.0%

Repayment schedule

Month	Interest	Principal	Balance left
1	125.00	362.44	4,637.56
2	115.94	371.50	4,266.07
3	106.65	380.78	3,885.28
4	97.13	390.30	3,494.98
5	87.37	400.06	3,094.92
6	77.37	410.06	2,684.86
7	67.12	420.31	2,264.54
8	56.61	430.82	1,833.72
9	45.84	441.59	1,392.13
10	34.80	452.63	939.50
11	23.49	463.95	475.55
12	11.89	475.55	0.00

Before you borrow

Ask whether the rate is flat or reducing balance, and per month or per year. "Only 5%" usually means 5% a month.
Ask for every fee in writing: processing, insurance and late payment fees all add to the cost.
Loan apps and lenders must be licensed by the Bank of Ghana. Check a lender's licence
Never pay an upfront "processing fee" to receive a loan. That is the most common loan scam.

Results are estimates for comparison. Your lender's contract is what counts.