Understanding Flat and Effective Interest Rate

Flat or Nominal interest rate is defined as a stated interest rate. This interest works according to the simple interest and does not take into account the compounding periods.

Effective interest rate is the one which caters to the compounding periods during a payment plan. It is used to compare the annual interest between funding with different compounding periods like week, month, year etc.

In general stated or nominal interest rate is less than the effective one. And the latter depicts the true picture of financial payments. Therefore, it is important to look at the effective interest rate when deciding to accept an offer to get funds or when investing. To make matters less confusing for issuers, it may be simpler to look at the monthly repayment amount based on the rates offered to decide if the business cash flow is sufficient to repay the funding.

Funding Amount (RM)
Interest Rate p.a. (Flat)
Monthly Instalment Amount

Why Fundaztic


Fundaztic aims to drive access to financing so, even micro businesses and start-ups can apply.   Fundaztic的目标是制造更多的融资管道,给予想要投资的投资者跟多的选择,尤其是小型公司和微型企业。  
Funding amount is between RM20,000 to RM200,000 with short repayment periods of between 3 months to 36 months with interest rates as low as 5.88% per annum.   我们给予的融资数额是位于RM20,000至RM200,000之间。还款期限为3个月到36个月,利率更是低至5.88%.  
Other benefits : - 不仅如此,您还可享用以下的利益:-
  • Low origination fees of 1% per annum 每年低达1%的手续费
  • No legal fees and documentation fees 无需缴付任何律师费
  • No early settlement penalty 提前还款无需缴付违约金