What is the difference between Flat Rate and Effective Interest Rate (EIR)?

A Flat Rate calculates interest based on the original principal amount throughout the entire loan tenure.

The EIR is calculated based on your remaining loan balance. This means as you pay down your principal, your interest charges decline, reflecting the true cost of your borrowing.

GXB Biz FlexiLoan and CGC Guaranteed Biz FlexiLoan use the Effective Interest Rate (EIR) to calculate your interest charges.