We charge interest on the total principal (= the original loan amount). If you pay less than the amount you owe today, Tala continues to charge interest on the total principal.
For example:
If you borrow ₹1000 at 36% annual interest, on day 10 you would owe ₹1010 (Interest = 1000*36%*10/365 = ₹10) . Say you repay only ₹500 on day 10, the balance is now ₹510. On day 11, the amount you owe would be ₹511 (Interest = 1000*36%*11/365 = ₹11)
We are continuing to work towards making this better for you. Please write to us if you have any queries!
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