How is the daily interest rate calculated?

Microcredit is not free money, so it always has an interest rate associated. A daily interest rate means that every day will be added a % (interest rate) to your debt (check the interest rates here).

You should consider the following formula: Total Debt = Amount Due + (Amount Due * Daily Interest Rate * number of days due)

As an example:

You received $100 as a Microcredit on the 1st of April (considering an interest rate of 0,2%):

  • on the 1st of April: your debt rises to $100.2 ($100 + 0,2%)
  • on the 2nd of April: your debt rises to $100.4 ($100,1 + 0,2%)
  • After 30 days, your debt rises to $103,03, which means after 30 days, you have an accumulated debt of $106,18 (more $6,18 than on the 1st of April)
  • If you decide to repay $30 on day 30 of April, your debt on the 1st of May will be: ($106,18 - $30) + 0,2% = $76,33