Question 1

What does 2 Rupees Vaddi mean in India?

Accepted Answer

2 Rupees Vaddi means ₹2 per month for every ₹100 borrowed, which equals 2% monthly interest or 24% annual interest (APR).

Question 2

How is hand loan interest calculated for broken months and extra days?

Accepted Answer

The monthly interest is divided by 30 to get the daily interest rate, and multiplied by the number of extra days.

Question 3

What is the difference between Simple Vaddi and Chakra Vaddi?

Accepted Answer

Simple Vaddi calculates interest solely on principal. Chakra Vaddi (Compound Interest) adds unpaid interest to principal periodically.

Question 4

How does Dhana Track manage private hand loans and debts?

Accepted Answer

Dhana Track includes a Debt Snowball & IOU manager to log given/taken loans, track monthly vaddi, and record partial repayments.