How interest really works (simple examples)

Educational only — not financial advice.

Interest line illustration

Simple idea

Interest is the “cost of money” (for borrowers) or the “earning on money” (for savers). It depends on rate and time.

Quick example

If you borrow ₹1,00,000 at 12% per year, the monthly rate is about 1% (12% / 12). Over time, interest adds up.

Always check the provider’s official rate and fee details.