Step 1
Smaller loan. Bigger daily interest?
- Card loan: INR 50,000 at 27% annual
- Personal loan: INR 75,000 at 13% annual
- Compare interest, not just loan size
Which loan should you repay first?
A bigger balance does not always mean more interest.
Our smaller card loan is fifty thousand rupees at twenty-seven percent annually.
The larger personal loan is seventy-five thousand at thirteen percent.
These are illustrative rates, not every lender's rates.
Step 2
Track each loan in its own category
- Categories tab > Add category
- Card Loan > Debt > Loan tracking
- Complete any offered category unlock
In Categories, add Card Loan, choose Debt, then Loan tracking.
Complete any offered category unlock.
Create a separate Personal Loan category too.
These track money you owe, not a purchase or money lent to someone.
Step 3
Use Compound with the annual card-loan rate
- Accrual cadence: Daily; type: Compound
- Starting principal: INR 50,000
- Annual interest rate: 27%
For Card Loan, choose Daily and Compound in this example.
Enter fifty thousand as starting principal and twenty-seven as the annual interest rate.
Daily means the calculation schedule, not twenty-seven percent every day.
Use your actual lender's rate and calculation terms.
Step 4
Set up the larger personal loan separately
- Personal Loan: Daily and Compound
- Starting principal: INR 75,000
- Annual interest rate: 13%
For Personal Loan, use seventy-five thousand and thirteen percent annually, again Daily and Compound.
Matching the calculation method makes this comparison clear.
Starting principal supports the opening only when it is not already recorded; do not add the same borrowing twice.
Step 5
Review dates and save both categories
- Example start: 1 October 2026
- Example tenure: 12 months
- Review and save each loan
Review the start date and tenure, then save each category.
Our examples start on the first of October, twenty twenty-six, for twelve months.
Any monthly repayment plan is only a plan.
Record real borrowing and repayments separately with their actual dates.
Step 6
Read interest for one completed day
- Dashboard > Interest Balances > Debt
- Card Loan: INR 36.99 interest
- Personal Loan: INR 26.71 interest
Return to Dashboard, open Interest Balances, then Debt.
After one completed day with no movements, the smaller card loan adds thirty-six rupees ninety-nine paise.
The larger personal loan adds twenty-six rupees seventy-one paise.
The smaller loan costs more interest per day here.
Step 7
Day two: prior interest joins the balance
- Balance including prior interest x annual rate / 365
- Card day 2: INR 37.01; total interest: INR 74.00
- Personal day 2: INR 26.72; total: INR 53.43
In daily compounding, the interest-bearing balance times the annual rate is divided by three hundred sixty-five.
Yesterday's interest joins that balance.
With no repayments, day two adds thirty-seven rupees one paise for Card Loan and twenty-six rupees seventy-two paise for Personal Loan.
Recent postings can include catch-up interest.
Step 8
Decide where extra repayments can help
- Pay required instalments on every loan first
- INR 10,000 less principal: initial card saving INR 7.40/day
- Same reduction: initial personal saving INR 3.56/day
Keep required payments on every loan current.
On the first modeled day, ten thousand rupees less principal saves about seven rupees forty paise on the card loan, versus three rupees fifty-six on the personal loan.
Actual repayments may cover accrued interest first.
Earlier principal reduction also limits future compounding.
Step 9
Check lender terms before closing a loan
- Check overdue amounts and prepayment charges
- Keep an emergency buffer; rates can change
- Pennie tracks interest; it does not pay or rank loans
Check overdue amounts, prepayment charges and your emergency buffer before acting.
Revolving card balances can have different fees, grace periods and rules.
Pennie's tracked accrual is not a bank settlement quote.
It helps you compare daily costs; it does not automatically rank or close your loans.