# How is my Instalment Loan interest payable calculated?

Interest is calculated on a daily non-compounding basis. This means that the interest is charged on your outstanding GXS FlexiLoan balance each day.

To calculate the interest payable across your loan tenure when you first draw a loan - For example, if you took a loan of S$10,000 with a tenure of 3 years:

Annual Percentage Rate (APR): 3% p.a.

Effective Interest Rate (EIR): 5.69% p.a.

Tenure: 3 years

Loan drawn: S$10k

Total interest payable = Loan * APR * tenure

= S$10,000 * 3% / 365 * (365 * 3 years)

= S$900

**The Annual Percentage Rate (APR) represents the total borrowing cost, expressed as a yearly rate, relative to the initial loan amount.
The Effective Interest Rate (EIR) is the rate that reflects the true cost of borrowing and takes into account total charges. It's computed over a reducing balance basis and accrued daily.*