When contacting a bank for the purpose of obtaining a loan, we are primarily interested in the interest rate that the lender can offer on it. However, most potential clients do not think that the real cost of the loan is much higher than the declared one. Many people choose the bank in which the loan rate indicated in the advertising publication, in their opinion, is more profitable.
Instructions
Step 1
Payment for a loan, in addition to the officially announced interest, includes a number of payments. These can be commissions for considering an application, for opening and maintaining a loan account, for maintaining a credit transaction, as well as all kinds of fines, for example, for early repayment of a principal debt. These payments are indicated in the loan agreement, and must also be announced by the bank inspector when consulting the client.
Step 2
In addition, for some types of loans, for example, for a mortgage or car loan, insurance of the pledged property is provided, which also falls on the shoulders of the borrower. In some cases, especially in the absence of collateral for the loan, banks oblige the borrower to insure his life and health. Therefore, when calculating the real cost of a loan, these costs should also be taken into account.
Step 3
It must be remembered that the cost of a loan is also influenced by the way it is repaid. Currently, Russian banks offer two types of payments: annuities (in equal shares) and differentiated (decreasing). For many, the first option seems more attractive, since the first payments in time are much less than in the second case. However, the total overpayment turns out to be higher, since the balance of the principal debt decreases much more slowly, which means that the interest charged on it will be higher.
Step 4
Thus, in order to calculate the full cost of a loan, you need to know the interest rate on it, additional payments, as well as the repayment method. The simplest calculation will look like this. The monthly payment on a loan, taking into account interest, must be multiplied by the term of the loan. Then all the necessary payments should be added to this amount, including commissions and insurance. From the result obtained, you need to subtract the amount of the requested loan. As a result, you will receive an overpayment for the loan for the entire period of its provision. If it is divided by the loan amount provided and multiplied by 100 percent, then you get the real interest rate, which shows the payment for its use.
