Describes the method(s) used by the organization to state the interest rate of its products. Select all that apply:
- Declining balance method
- Flat interest method
Interest Rate Method (PD2691)
- Reporting Format Selection
- Metric Type Metric
- Metric Level Product/Service
- IRIS Metric Citation IRIS, 2021. Interest Rate Method (PD2691). v5.2.
Footnote
Organizations that use multiple methods should footnote the products to which each method applies.
Usage Guidance
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This metric is intended to capture the interest calculation(s) used by the organization. Amounts of interest payment depend on both the stated interest rate and the method used to calculate it.
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With the declining balance method, also known as the reducing balance method, interest is charged only on the product amount that the borrower still holds.
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With the flat rate method, interest is charged on the full, original product amount throughout the entire product term. This metric is not intended to capture amortization schedules on debt products (e.g., straight line, declining balance, bullet, balloon, increasing balance, or others).
Impact Categories & Themes
SDG Goals & Targets
No Poverty
- SDG Target 1.5
- SDG Target 1.4
Gender Equality
- SDG Target 5.5
Decent Work and Economic Growth
- SDG Target 8.1
- SDG Target 8.2
- SDG Target 8.3
- SDG Target 8.10
Industry, Innovation and Infrastructure
- SDG Target 9.3
Reduced Inequality
- SDG Target 10.1
- SDG Target 10.2
- SDG Target 10.3
Sustainable Cities and Communities
- SDG Target 11.5