How the repayment is worked out
Lenders quote an annual interest rate and charge it monthly, so the monthly rate is the annual rate divided by 12. Each month’s interest is charged on what you still owe, and the level repayment is the amount that clears the loan, interest included, by the end of the term. Each month’s interest is rounded to the cent, and the last payment clears the balance exactly.
Is there a legal maximum?
Zimbabwe’s Moneylending and Rates of Interest Act says no lender may charge more than “the prescribed rate of interest”, and it counts fees and charges as interest. Interest above it can’t be recovered. We couldn’t find the current prescribed rate published where we could verify it, so the calculator doesn’t check your rate against it. Our guide explains what the Act says.
Fees
Add any arrangement fee and monthly fee under “Fees, extra payments and settling early”: the total cost then includes them, which is the fairest way to compare two loans.
We don’t offer credit, arrange loans or recommend lenders. If you’re struggling with repayments, talk to your lender early.