Effective Interest Rate (EIR) (PI7467)

Value of the effective interest rate (EIR) for the organization’s most representative loan product during the reporting period.

Organizations should footnote all assumptions used.

This metric is intended to capture the effective interest rate (EIR), a figure that converts all financial costs to the borrower for a loan into a single declining-balance interest calculation. It includes the effects of interest rates (whether calculated on a flat or declining basis), payment schedules, commissions, fees, discounting, and compensating balances.
For guidance on calculating EIR, organizations should refer to the tool created by the MFTransparency Organization (http://www.mftransparency.org/pages/ctp-tool/).

June 2025 - IRIS+ v5.3b Released (current version)

No change.
December 2024 - IRIS+ v5.3a Released

No change.
June 2022 - IRIS+ v5.3 Released

Immaterial change. Minor revisions to definition and usage guidance for clarity.
May 2021 - IRIS+ v5.2 Released

No change.
January 2020 - IRIS+ v5.1 Released

No change.
May 2019 - IRIS+ v5.0 Released

No change.
March 2016 - IRIS+ v4.0 Released

No change.
March 2014 - IRIS+ v3.0 Released

Material change. Metric definition modified to provide clarity based on best practices via the Microfinance Information Exchange (MIX).
November 2011 - IRIS+ v2.2 Released

No change.
February 2011 - IRIS+ v2.1 Released

No change.
September 2010 - IRIS+ v2.0 Released

Immaterial change. IRIS ID changed due to framework upgrade. Minor revision to definition language for clarity.
September 2009 - IRIS+ v1.0 Released

New metric. Effective Interest Rate (M23.1) was developed via the Original IRIS Working Group.