Ad hoc- Here the interest rate can be changed whenever required.
Fixed Interest- the interest will remain the same throughout the loan period.
Bank Format- The interest will be based on the Bank Interest rates.
No Interest- It is a zero-interest loan where you are not required to pay any interest.
Reducing Balance-The reducing interest rate is calculated on the diminishing principal amount. Every month when you pay your EMI, your principal loan amount decreases. Interest will be calculated based on the reduced principal amount.