Per-Day Interest Explained: How Much Will Your Instant Loan Cost?
- Interest = amount × rate per day × number of days.
- APR = rate per day × 365 — always compare loans by APR.
- Repaying early cuts the interest because you pay only for the days used.
The formula
Most instant loans charge simple interest per day. The maths is easy: Interest = Loan amount × daily rate × days. There is no compounding inside a short tenure, so you can work it out on a calculator in seconds.
Worked examples
| Loan | Days | At 0.5%/day | At 1%/day |
|---|---|---|---|
| ₹10,000 | 30 | ₹1,500 | ₹3,000 |
| ₹25,000 | 30 | ₹3,750 | ₹7,500 |
| ₹50,000 | 60 | ₹15,000 | ₹30,000 |
Processing fee and GST, if any, are extra and listed in the Key Fact Statement.
What is APR and why does it matter?
APR (Annual Percentage Rate) is the yearly cost of borrowing. For per-day interest, APR = daily rate × 365. So 0.5% per day is 182.5% a year and 1% per day is 365% a year. A short loan for a few weeks costs a manageable amount, but keeping it for many months becomes expensive — which is why instant loans suit short gaps.
How to pay less
- Repay early. Every day you return the money earlier saves interest.
- Borrow less. Interest grows with the amount.
- Pick the right tenure. Choose days that match your next income, not the longest option.
- Repay on time. Late charges and a lower credit score cost more later.
FAQs
Is interest charged on the full tenure if I repay early? Check your Key Fact Statement; most per-day loans charge only for the days used.
Where can I see my exact cost? In the lender's Key Fact Statement before you accept, and on our loan calculator for an estimate.
