Group Members

Bansri Patel
Navjot Attri
Shruti D.K. Patel

78873
78515
78511

Loan Amount
Repayment Term(Yrs)
Interest Rate Per Annum
Interest Rate Per Month
Discount Factor, v
Annuity Factor

1000000
48
14.50%
1.13%
0.5818058092
36.8530275512

Repayment per Month

27134.8126992027

n
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35

Payment end of month

Monthly Repayment
1000000
27134.8126992027
984212.808338921
27134.8126992027
968246.469609615
27134.8126992027
952098.950919043
27134.8126992027
935768.196305664
27134.8126992027
919252.126477666
27134.8126992027
902548.638548221
27134.8126992027
885655.605767737
27134.8126992027
868570.877253076
27134.8126992027
851292.277713692
27134.8126992027
833817.607174665
27134.8126992027
816144.640696595
27134.8126992027
798271.128092312
27134.8126992027
780194.793640376
27134.8126992027
761913.335795321
27134.8126992027
743424.426894616
27134.8126992027
724725.712862297
27134.8126992027
705814.81290924
27134.8126992027
686689.319230025
27134.8126992027
667346.796696371
27134.8126992027
647784.782547085
27134.8126992027
628000.786074489
27134.8126992027
607992.288307303
27134.8126992027
587756.741689913
27134.8126992027
567291.56975801
27134.8126992027
546594.166810543
27134.8126992027
525661.897577955
27134.8126992027
504492.096886648
27134.8126992027
483082.069319643
27134.8126992027
461429.088873392
27134.8126992027
439530.398610691
27134.8126992027
417383.210309657
27134.8126992027
394984.704108724
27134.8126992027
372332.028147602
27134.8126992027
349422.298204174
27134.8126992027

36
37
38
39
40
41
42
43
44
45
46
47
48
Sums

326252.597327263
302819.975465233
279121.449090384
255154.000819071
230914.579027524
206400.097463303
181607.434852346
156533.434501553
131174.90389687
105528.614296801
79591.3003213168
53359.6595360918
26830.352032028

27134.8126992027
27134.8126992027
27134.8126992027
27134.8126992027
27134.8126992027
27134.8126992027
27134.8126992027
27134.8126992027
27134.8126992027
27134.8126992027
27134.8126992027
27134.8126992027
27134.8126992027
1302471.00956173

Interest component
Capital Component
Loan Outstanding after payment
11347.6210381231
15787.1916610795
984212.81
11168.473969897
15966.3387293057
968246.47
10987.2940086305
16147.5186905721
952098.95
10804.0580858239
16330.7546133788
935768.20
10618.7428712047
16516.069827998
919252.13
10431.3247697574
16703.4879294453
902548.64
10241.7799187192
16893.0327804835
885655.61
10050.0841845417
17084.728514661
868570.88
9856.2131598181
17278.5995393846
851292.28
9660.1421601757
17474.670539027
833817.61
9461.8462211327
17672.9664780699
816144.64
9261.3000949201
17873.5126042825
798271.13
9058.4782472666
18076.3344519361
780194.79
8853.3548541477
18281.457845055
761913.34
8645.9037984976
18488.9089007051
743424.43
8436.098666884
18698.7140323187
724725.71
8223.912746145
18910.8999530577
705814.81
8009.3190199879
19125.4936792148
686689.32
7792.2901655491
19342.5225336536
667346.80
7572.7985499158
19562.0141492868
647784.78
7350.8162266073
19783.9964725953
628000.79
7126.3149320168
20008.4977671859
607992.29
6899.2660818126
20235.5466173901
587756.74
6669.6407672992
20465.1719319035
567291.57
6437.4097517359
20697.4029474668
546594.17
6202.5434666147
20932.269232588
525661.90
5965.0120078953
21169.8006913073
504492.10
5724.7851321978
21410.0275670049
483082.07
5481.8322529516
21652.980446251
461429.09
5236.1224365017
21898.690262701
439530.40
4987.6243981693
22147.1883010333
417383.21
4736.3064982693
22398.5062009334
394984.70
4482.136738081
22652.6759611217
372332.03
4225.0827557748
22909.7299434279
349422.30
3965.111822291
23169.7008769116
326252.60

3702.1908371732
3436.2863243532
3167.3644278895
2895.3909076558
2620.3311349821
2342.1500882453
2060.8123484101
1776.2820945195
1488.5230991339
1197.4987237184
903.1719139778
605.5051951388
304.4606671789

23432.6218620295
23698.5263748495
23967.4482713132
24239.4217915469
24514.4815642206
24792.6626109574
25074.0003507926
25358.5306046832
25646.2896000688
25937.3139754843
26231.6407852249
26529.3075040638
26830.3520320238

302471.009561732 999999.999999996

302819.98
279121.45
255154.00
230914.58
206400.10
181607.43
156533.43
131174.90
105528.61
79591.30
53359.66
26830.35
0.00

Interest and Principal Pmts

30000
25000
20000
15000
10000
5000
0
Principal Pmt

Interest Pmt

Principal
Interest
n
nper
v^n
annuity factor
Monthly Installment

1000000
1%
4
48
0.6202604051
37.973959493
26333.835432

Loan at Start Monthly pmt

Interest Component
1
1000000
26333.8354319277
10000
2 983666.16457
26333.8354319277
9836.6616456807
3 967168.99078
26333.8354319277
9671.6899078183
4 950506.84526
26333.8354319277
9505.0684525772
5 933678.07828
26333.8354319277
9336.7807827837
6 916681.02363
26333.8354319277
9166.8102362922
7 899513.99843
26333.8354319277
8995.1399843359
8 882175.30299
26333.8354319277
8821.7530298599
9 864663.22058
26333.8354319277
8646.6322058393
10 846976.01736
26333.8354319277
8469.7601735784
11 829111.9421
26333.8354319277
8291.1194209949
12 811069.22609
26333.8354319277
8110.6922608856
13 792846.08292
26333.8354319277
7928.4608291751
14 774440.70831
26333.8354319277
7744.4070831476
15 755851.27997
26333.8354319277
7558.5127996598
16 737075.95733
26333.8354319277
7370.7595733371
17 718112.88148
26333.8354319277
7181.1288147512
18 698960.17486
26333.8354319277
6989.6017485795
19 679615.94117
26333.8354319277
6796.159411746
20 660078.26515
26333.8354319277
6600.7826515442
21 640345.21237
26333.8354319277
6403.4521237403
22 620414.82907
26333.8354319277
6204.1482906584
23 600285.14192
26333.8354319277
6002.8514192458
24 579954.15791
26333.8354319277
5799.5415791189
25 559419.86406
26333.8354319277
5594.1986405908
26 538680.22727
26333.8354319277
5386.8022726775
27 517733.19411
26333.8354319277
5177.331941085
28 496576.69062
26333.8354319277
4965.7669061765
29 475208.62209
26333.8354319277
4752.086220919
30 453626.87288
26333.8354319277
4536.2687288089
31 431829.30618
26333.8354319277
4318.2930617778
32 409813.76381
26333.8354319277
4098.1376380763
33 387578.06601
26333.8354319277
3875.7806601377

34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
Total Payments

365120.01124
342437.37592
319527.91425
296389.35796
273019.41611
249415.77484
225576.09715
201498.02269
177179.16749
152617.12373
127809.45954
102753.7187
77447.420455
51888.059228
26073.104388

26333.8354319277
26333.8354319277
26333.8354319277
26333.8354319277
26333.8354319277
26333.8354319277
26333.8354319277
26333.8354319277
26333.8354319277
26333.8354319277
26333.8354319277
26333.8354319277
26333.8354319277
26333.8354319277
26333.8354319277

3651.2001124198
3424.3737592248
3195.2791424977
2963.8935796034
2730.1941610802
2494.1577483717
2255.7609715362
2014.9802269322
1771.7916748823
1526.1712373118
1278.0945953657
1027.5371870001
774.4742045508
518.880592277
260.7310438805

1264024.10073253

264024.100732533

Principal Rpmt

Loan Outstanding at end of month

16333.8354319277
983666.16
16497.173786247
967168.99
16662.1455241095
950506.85
16828.7669793506
933678.08
16997.0546491441
916681.02
17167.0251956355
899514.00
17338.6954475919
882175.30
17512.0824020678
864663.22
17687.2032260885
846976.02
17864.0752583494
829111.94
18042.7160109329
811069.23
18223.1431710422
792846.08
18405.3746027526
774440.71
18589.4283487801
755851.28
18775.3226322679
737075.96
18963.0758585906
718112.88
19152.7066171765
698960.17
19344.2336833483
679615.94
19537.6760201818
660078.27
19733.0527803836
640345.21
19930.3833081874
620414.83
20129.6871412693
600285.14
20330.984012682
579954.16
20534.2938528088
559419.86
20739.6367913369
538680.23
20947.0331592503
517733.19
21156.5034908428
496576.69
21368.0685257512
475208.62
21581.7492110087
453626.87
21797.5667031188
431829.31
22015.54237015
409813.76
22235.6977938515
387578.07
22458.05477179
365120.01

22682.6353195079
22909.461672703
23138.55628943
23369.9418523243
23603.6412708476
23839.677683556
24078.0744603916
24318.8552049955
24562.0437570455
24807.6641946159
25055.7408365621
25306.2982449277
25559.361227377
25814.9548396507
26073.1043880473
999999.999999998

342437.38
319527.91
296389.36
273019.42
249415.77
225576.10
201498.02
177179.17
152617.12
127809.46
102753.72
77447.42
51888.06
26073.10
0.00

Interest and Principal payments

30000
25000
20000
Amount (KES)

15000
10000
5000
0
Time(n)
Interest paid

Principal

ayments

al

This worksheet comprises of the loan schedules of a traditional reducing balance loan and
It will also show how the interest and the principal component of the monthly payments va

Since the SACCO loan was payable monthly, we converted the traditional loan to monthly p
This is contained in the cell B4.

We have assumed that the SACCO loan is also reducing balance in nature and that the inte
We have assumed that repayments are made in arrears, i.e. at the end of the month.
The monthly payment for both loans is calculated using the formula

The annuity factor is calculated using the effective monthly rate for both cases, which is 1
The formula used was ( 1The interest component in each monthly repayment is calculated by multiplying the loan o
The principal component is calculated by subtracting the interest component from the mon
the loan outstanding at the end of the month, which is after the repayment is calculated by

ducing balance loan and a SACCO loan.

he monthly payments vary over time.

ditional loan to monthly payments to improve consistency in comparing the two products.

nature and that the interest rate stays constant over the period of the loan.
end of the month.
X= loan/annuity factor

or both cases, which is 1% and 1.13% for the SACCO loan and the traditional loan respectively.
he formula used was ( 1- v^n)/i
by multiplying the loan outstanding at the start of the month.
component from the monthly repayment.
payment is calculated by subtracting the principal repayment for the period from the loan outstanding at the st

an outstanding at the start of the period.

Traditional Loan
SACCO Loan
11347.6210381231
10000
11168.473969897 9836.662
10987.2940086305 9671.69
10804.0580858239 9505.068
10618.7428712047 9336.781
10431.3247697574 9166.81
10241.7799187192 8995.14
10050.0841845417 8821.753
9856.2131598181 8646.632
9660.1421601757 8469.76
9461.8462211327 8291.119
9261.3000949201 8110.692
9058.4782472666 7928.461
8853.3548541477 7744.407
8645.9037984976 7558.513
8436.098666884 7370.76
8223.912746145 7181.129
8009.3190199879 6989.602
7792.2901655491 6796.159
7572.7985499158 6600.783
7350.8162266073 6403.452
7126.3149320168 6204.148
6899.2660818126 6002.851
6669.6407672992 5799.542
6437.4097517359 5594.199
6202.5434666147 5386.802
5965.0120078953 5177.332
5724.7851321978 4965.767
5481.8322529516 4752.086
5236.1224365017 4536.269
4987.6243981693 4318.293
4736.3064982693 4098.138
4482.136738081 3875.781
4225.0827557748
3651.2
3965.111822291 3424.374
3702.1908371732 3195.279
3436.2863243532 2963.894
3167.3644278895 2730.194
2895.3909076558 2494.158
2620.3311349821 2255.761
2342.1500882453 2014.98
2060.8123484101 1771.792
1776.2820945195 1526.171

1488.5230991339
1197.4987237184
903.1719139778
605.5051951388
304.4606671789

1278.095
1027.537
774.4742
518.8806
260.731