Effective Interest Rate (EIR) definition

Effective Interest Rate (EIR) means an annual rate of interest equal to the monthly compounding of the Nominal Interest Rate.
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Effective Interest Rate (EIR) means the total cost of credit or return on deposit, stated as an annual rate of credit’s total value or deposit’s total return, and calculated according to the methodology presented in Article 4 and Annex 1 of this Regulation, by means of which discounted cash inflows are balanced against discounted cash outflows, which refer to credits granted or deposits received. In discounting, the actual (calendar) number of days in a month and a 365 / 366-day year are used.
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Examples of Effective Interest Rate (EIR) in a sentence

  • The interest and Principal components of the MID vary each month and are computed as follows: • Interest component: Prior month’s outstanding Principal balance x monthly Effective Interest Rate (EIR), where monthly EIR = (1 + Annual EIR)1/12 – 1.

  • The Interest and principal components of the Monthly Installments Due vary each month and are computed as follows: • Interest component: Prior month’s outstanding principal balance x monthly Effective Interest Rate (EIR), where monthly EIR = (1 + Annual EIR) 1/12 – 1.

Related to Effective Interest Rate (EIR)

  • Effective Interest Rate means the total interest rate established by Ecology that includes the Administrative Charge. “Estimated Loan Amount” means the initial amount of funds loaned to the RECIPIENT.

  • Interest Rate Adjustment Date With respect to each Adjustable Rate Mortgage Loan, the date, specified in the related Mortgage Note and the related Mortgage Loan Schedule, on which the Mortgage Interest Rate is adjusted.

  • Interest Rate Option means any LIBOR Rate Option or Base Rate Option.

  • Applicable Interest Rate means the rate of interest prescribed under the Act from time to time;

  • Reserve Interest Rate With respect to any Interest Determination Date, the rate per annum that the Trustee determines to be either (i) the arithmetic mean (rounded upwards if necessary to the nearest whole multiple of 1/16%) of the one-month U.S. dollar lending rates which New York City banks selected by the Trustee are quoting on the relevant Interest Determination Date to the principal London offices of leading banks in the London interbank market or (ii) in the event that the Trustee can determine no such arithmetic mean, the lowest one-month U.S. dollar lending rate which New York City banks selected by the Trustee are quoting on such Interest Determination Date to leading European banks.