What is Sud (Interest)? (ब्याज / सूद)
Sud translates to 'Interest'. In the context of Girvi, it is the fee charged by the lender for borrowing money against collateral.
Detailed Explanation
Interest in traditional Indian money lending is often calculated on a monthly percentage basis (e.g., 2% per month) rather than an Annual Percentage Rate (APR). The 'Sud' is usually calculated simple interest, though some lenders use compound interest if the loan exceeds a certain time limit without any servicing.
Why is Sud (Interest) Important?
Manual calculation of Sud across hundreds of customers with varying loan dates and partial payments is the leading cause of revenue leakage in traditional money lending.
How SthirApp Handles Sud (Interest)
SthirApp automates the calculation of Sud. The lender sets the monthly interest rate, and the app calculates the exact accrued interest up to the current day, eliminating manual math errors.
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