What is WeLab Bank Debt Consolidation Loan’s interest calculation method?

WeLab Bank Debt Consolidation Loan uses straight-line methods to calculate the proportion of interest and principal in each monthly repayment. Even though the monthly repayment amount is the same throughout the loan tenor, more interests will be included in earlier repayments and less on principal.Here is an example:
  • A customer borrows HKD200,000 for 18 months with a monthly flat rate of 0.18%, and the handling fee is waived.
  • Monthly interest: HKD200,000 x 0.18% = HKD360
  • Total interest for the full term = HKD360 x 24 months = HKD8,640
  • Total repayment amount: HKD200,000 + HKD8,640 = HKD208,640
  • Monthly repayment amount: HKD208,640 / 24 = HKD8693.33
You can find the details of your monthly repayment as follow:ENGLISH_bt_faq_visual.pngPlease be reminded if you decide to repay your loans early after a certain period, the early repayment charges may outweigh the amount of interest saved. We also marked this period in our app to help you decide whether you will repay the loan in advance.All numbers are rounded to the nearest cent.

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