How we charge interest:
At Untangled interest is calculated using a ‘Simple interest’ method.
This means interest is charged only on the amount borrowed, rather than on previously accrued interest.
This calculation is different to ‘Compound interest’ which means interest can also be charged on the accumulated interest over time. Compound interest is common in the market, it rewards complexity, not clarity.
We don’t believe that’s right for your clients. We’ve made it straightforward for you to understand what you’re paying back.
Key benefits of simple interest:
• Simpler costs over time. No compounding means no snowball effect. Their interest stays steady. Predictable.
• Clarity from day one. Simple interest means no surprises. No build-up.
• Your clients are only charged for what they use. If you don’t drawdown the funds, they don’t pay for them. If they repay early, the interest stops right there.
• A smoother financial path. Simple interest gives your clients more control. More certainty.
| |
Untangled (Simple interest) |
Competitors (Compound Interest) |
| How interest works |
On your outstanding balance only |
On balance and previous interest |
| Interest on accumulated interest? |
No |
Yes |
| Transparency |
Rewards clarity |
Rewards complexity |
| Interest visibility |
Fully predictable |
Less predictable |
| Risk of misunderstanding |
Low |
Higher chance if not explained |
Ampla Consumer Finance (trading as Untangled). Loans are a form of borrowing and interest is charged on the amount borrowed. The interest rate offered will depend on your individual circumstances. The total amount repayable will depend on the amount borrowed, the interest rate and the length of the loan. All lending is subject to eligibility, creditworthiness and affordability assessments.
