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
Describes the method(s) used by the organization to state the interest rate of its products. Select all that apply:
Organizations that use multiple methods should footnote the products to which each method applies.
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.
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.
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).
June 2022 - IRIS v5.3 Released (current version)
Immaterial change. Minor revision to usage guidance for clarity.
January 2020 - IRIS v5.1 Released
No change.
May 2019 - IRIS v5.0 Released
No change.
March 2016 - IRIS v4.0 Released
Immaterial change. Minor revision to definition language for clarity.
March 2014 - IRIS v3.0 Released
Immaterial change. Minor revision to definition language for clarity.
November 2011 - IRIS v2.2 Released
No change.
February 2011 - IRIS v2.1 Released
No change.
September 2010 - IRIS v2.0 Released
Immaterial change. Interest Rate - Method (PD2691) replaced Interest Rate: Method (M23). IRIS ID / metric name changed due to framework upgrade. Minor revision to definition language for clarity.
September 2009 - IRIS v1.0 Released
New metric. Interest Rate: Method (M23) was developed via the Original IRIS Working Group.
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