Finance rate which is also known as interest rate is the amount you would have to pay in addition to the principal amount that you borrow from a bank or any other financial institution. The interest rate amount will be the percentage of the loan you take, which you would have to pay back to the lender. The finance rate will be calculated on a yearly basis.
For example, a 10% finance rate means that the rate of interest charged will be 10% of the loan amount. Suppose you have taken a loan for Rs. 50,000, then you would have to pay 10% of Rs. 50,000 every year, i.e Rs. 5000 every year as interest. You would have to pay interest throughout the tenure of your loan. If your loan tenure is for 5 years, then the total simple interest you will be paying will be Rs. 25,000.
Simple interest = Principal amount * rate of interest * tenure