: How to find flat rate of interest per annum and month if we have given reducing rate of interest or loan amount and tenure? For example: For loan amount 500000 for 5 years at the rate of 12% (reducing interest rate), EMI

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I believe "reducing interest rate" is a poor choice of words here. I think what it's referring to is an amortized loan where the interest is calculated based on the remaining principal, not the original loan amount. You always pay 1% per month (12%/12 months) of the remaining balance, but the interest "rate" as a percentage of the original balance declines.

If you calculate the total amount paid (11,122 * 5 years * 12), you get 667,333. Subtract that from the original amount and you see that a total of 167,333 in interest is paid, which equates to 33% of the original loan balance, or 6.69% per year, or 0.56% per month.