Rest Period means the basis of calculation of interest. A monthly rests basis calculates interest on the outstanding balance amount as at the 1st day of the month for the whole of that month. So even if you do make some repayment during that month, the amount of interest will not be reduced.

Interest for most fixed rate as well as some floating rate loans are calculated on a monthly rests basis. Loan packages with prepayment and/or redrawing features are calculated on a daily rests basis, similar to overdraft facilities. Make sure you choose a loan package which allows you to cut your interest costs. It is not just interest rate but the amount of interest that you will end up having to pay which is important.