Pawn interest and principal: what are you actually paying?

Money OK calculates monthly interest in two tiers: 2% on the first THB 2,000 and 1.25% on the amount above it. There are no additional fees beyond interest. Understanding principal and interest separately makes repayment easier to plan.

A THB 10,000 example

The first THB 2,000 costs THB 40 per full month; the remaining THB 8,000 costs THB 100. Total monthly interest is THB 140. If principal stays unchanged for four full months, interest is THB 560 and principal plus interest is THB 10,560.

Why the date matters

An actual redemption figure depends on transaction dates and previous payments. Partial months use the published half-month rule, not a simple daily pro-rata calculation. Money OK counts the pawn date but excludes the redemption date. See day-count examples.

Does paying interest reduce principal?

No. Tell staff if you want to reduce principal. For example, if you pay THB 1,000, ask how much covers interest and how much reduces the loan, then check the remaining balance on your receipt. For a payment made during a period, ask how interest is calculated before and after that date.

Borrow within your plan

Allow for interest as well as principal and consider only the amount you need. Renewal involves further interest—it is not a pause in borrowing costs. Use the planning calculator or confirm your actual balance.