All commercial banks, merchant banks and building societies are required to disclose this rate, irrespective of any other interest rate used by the Bank of Jamaica.
JNSBL’s EAIR FAQ
Why is JN Bank Small Business Loans now communicating its interest rates using the effective annual interest rate (EAIR)?
No, the agreed principal and interest repayment remain the same.
No, your monthly/fortnightly/weekly payments remain the same.
The EAIR, short for ‘effective annual interest rate’, is an alternative way of presenting interest rates applied to consumer products. The EAIR takes into consideration the compounding rate, while the frequently quoted APR (annual percentage rate) takes into consideration the simple interest.