Sectors of Focus

  • Financial Services
  • Financial Services: Microfinance

Effective Interest Rate (EIR) (PI7467)

Effective interest rate (EIR) for the most representative loan product of the organization during the reporting period.
Reporting format
Metric type
Metric level
Product/Service, Organization
IRIS metric citation
IRIS, 2016. Effective Interest Rate (EIR) (PI7467). v4.0.


Organizations should footnote all assumptions used.

Usage Guidance

  • This metric is intended to capture the rate that converts all the borrower's financial costs for a loan into a single declining balance interest calculation. It includes the effects of interest rates (whether they are calculated on a flat or declining basis), payment schedules, commissions, fees, discounting, and compensating balances.
  • Organizations should refer to the tool created by the MFTransparency Organization that provides guidance on EIR calculations: