Interest rate is the amount charged, expressed as a percentage of total amount you borrow. If you borrow 1,000 KES at a rate of 10% then on repayment of your loan you will be required to pay 1,100 KES.
1,000 KES will be the repayment of the amount you borrowed and the 100 KES will be the interest charged. The lower the interest rate is the better for you the borrower as the amount you will have to pay back will be lower.
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Very convenient
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