Int calculation base
pooja dedhia
(Querist) 18 September 2012
This query is : Resolved
when the personal loan introduced in the firm, how the rate of interest is calculated? taking the denometer as the 12 months or 365 days? How the rate of interest is calculated? suppose follwing is the situation---- date mentioned on cheque/;--18-sept 2012 date submitted to borrower ---21 sept 2012 cheque is deposited in bank--23 sept 2012 cheque is cleared in bank 25 sept 2012 on which date interest to be required to cal ? what is the correct way to calculate the int rate working from the legal point?
RAJU O.F.,
(Expert) 19 September 2012
Normally loan documents are executed and payment made by banker's cheque, the date of loan starts from that date and hence interest would be charge from that date excluding that day for counting. Whether interest is calculated monthly for for daily diminishing balances are depending on the agreed terms between borrower and banker.
