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WHAT DO YOU NEED TO KNOW ABOUT NOMINAL AND EIR?
Nominal Interest Rate is the stated, or named, interest rate in a note or contract.
Effective Interest Rate (EIR) is the rate that exactly discounts estimated future cash flows through the life of the loan to the net amount of loan proceeds.
Nominal
EIR*
PAF
AFP
12.36% - 17.34%
13.08% - 18.79%
12.42% - 15.72%
13.15% - 16.90%
PVAO
16.50% - 19.80%
17.80% - 21.70%
NOTE : Effective Interest Rates on loans varies mainly w/ the loan type, term of loan, and applicable taxes incidental to the transaction.
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