How does a reducing-balance loan work?
Interest is charged only on the amount you still owe, so as you repay the principal the interest portion of each instalment falls. Most personal loans use this structure.
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Loan Guides
How different loan structures actually work — and what they cost.
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Different loans are built in different ways, and the structure changes what you repay. This section breaks down how common loan types work — short-term micro loans, reducing-balance personal loans, and order-based business funding — so you can match the right product to your need. Each guide explains the pricing model, the typical term, and the trade-offs, in plain language. Final pricing always depends on the approved product, term and affordability outcome, and is disclosed before you sign.
Loan Guides articles
Loan Guides — common questions
What is a short-term micro loan?
A micro loan is a small loan repaid over a short period, usually with flat pricing. It suits a small, immediate need rather than a large or long-term expense.
How do I choose the right loan term?
A longer term lowers the monthly instalment but increases the total interest you pay; a shorter term costs less overall but demands higher repayments. Choose the shortest term you can comfortably afford.