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Business Loan Calculator

Growing a business is an exciting journey. This loan calculator is designed to raise your awareness on the difference between the flat and reducing rates and how it impacts your business. Simply enter a few details to see how your installments play out under each method.
Loan Calculator
Flat Rate to Reducing Rate (APR)
Monthly Installement
AED
Reducing Rate (APR)
Flat Rate
Total Profit
AED
Total Payment
AED
Reducing Rate (APR) to Flat Rate
Monthly Installement
AED
Flat Rate
Reducing Rate (APR)
Total Profit
AED
Total Payment
AED
Difference between Flat vs Reducing Rate
Principal: The total amount borrowed.
Profit or interest rate: The associated cost of financing either via a Sharia compliant structure or an interest bearing loan. At Funding Souq all our facilities are Sharia compliant.
Tenure: The duration over which the financing needs to be repaid.

Understanding the Results: Flat vs Reducing rate
  • Form of Calculation: The flat rate calculates the profit or interest on the total principal amount. In the Reducing rate calculation, the profit or interest is accrued under a diminishing rate based on the outstanding loan amount.
  • Comparison Rate: Under the flat rate, the profit or interest is calculated on a fixed percentage compared to a reducing rate. The flat rate equals a higher reducing rate.
  • Calculations: The flat rate is much simpler to calculate than the reducing rate.
For Businesses
Quick and easy process
  • Apply online
    Submit an online application in 5 minutes.
  • Get approved
    After assessing a successful application, we will send you an offer within 72 hours.
  • Receive Funds
    Once you accept our offer, we will launch a fundraising campaign. You will get the funds within 24 hrs of completion.
  • Repayments
    Pay monthly, or settle your obligations early with no extra fees.
    Get funded
Take your business to the next level with finance that arrives in days. Funding Souq provides a platform that provides businesses with quick and affordable access to funding.
Frequently Asked Questions

The cost of borrowing varies depending on the internally generated risk rating and the tenure of the loan. The fee varies from a one-off of 2-5%. Funding Souq doesn’t charge any additional fees.

Yes, businesses can have more than one funding request at any point in time. However, a business must have made several successful repayments on their existing facilities prior being approved for a second facility.

Businesses undergo a due diligence process that is led by the credit team. The risk assessments analyse business and financial performance as well as qualitative facts such as the strength of the management team, industry sentiment and others. The process also includes a site visit.

Repayments can be settled early with no penalties.

Repayments can made either be processed electronically through bank transfers or post-dated cheques can be issued in line with UAE banking practices.
More FAQs

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