Grant element calculation for a given loan*              
     
  Variable Value  
  Loan amount  
  Grant amount  
  Commitment charge or fee amount  
  Interest rate  
  Maturity (year)  
  Grace period (year)  
  Number of repayments per annum  
  Repayment type  
  Discount rate by loan currency applied  
  Interval (year)  
         
  Grant element   
     
 

* The methodology is in consistency with IDA’s policy on non-concessional borrowing by grant-eligible or MDRI-recipient countries. This exercise assumes that the loan amount is fully disbursed. For less standardized financial terms of a loan, the calculation of grant element might need to be tailored. For further information, contact kcoupry@worldbank.org.

(September 2009)