Well, i read it as follows…
- A 75K loan.
- 20% annual interest on it = 15K.
- Total repayment (principal + interest) in a year = 90K.
- 12 monthly EMI installments of 7.5K each = 90K.
Yes, IRR maybe different / much higher,
but this is how EMI-loans are pitched to end-users
to make the interest-rate seem lower than what it actually is, right?
Also add innocent sounding “processing fees” on top
and one is minting money providing such loans to unsuspecting folks.