The interest rate is applied for any type of loan and can be indicated for different periods - for a month, quarter or year. Usually banks issue loans with an indication of the annual interest rate, but the payment for the same amount borrowed at the same interest rate may be different, since payments can be differentiated and annuity.
It is necessary
- - contract;
- - calculator;
- - payment repayment schedule.
Instructions
Step 1
If you received a loan and differentiated payments are indicated in your agreement, then you will be charged interest on the balance of the debt. For example, you took 100 thousand rubles at 10% per annum for 1 year, interest will not be charged to you from 100 thousand, but will be charged monthly from the balance and only the first installment will be charged from the full amount. If you paid the first payment of 10 thousand rubles, then the next interest rate will be charged to you already from 90 thousand. Therefore, at the end of the loan period, your overpayment will be significantly lower than with annuity payments.
Step 2
If you received the same loan amount, but the payments are annuity, then you will pay the same amount every month, and you will receive interest from 100,000 for the entire loan period, regardless of how much debt actually remains. That is, in the end you will pay much more money and your overpayment will be much higher.
Step 3
Accordingly, a differentiated payment is always more profitable than an annuity one. But more often than not, the borrower does not pay any attention to this. Some banks offer lower interest rates, but in the end the amount of the overpayment is higher, especially since the payment schedule is calculated in such a way that the borrower first pays a significant amount of the interest rate and only at the end of the loan the payment is calculated to pay off the principal debt. Therefore, even if you plan to repay the loan earlier, the bank will still receive significant benefits, since all the client's interest obligations are invested in the initial payments.
Step 4
When deciding to get a substantial loan, always ask what type of payments will be made. Bank employees are trying to carefully hide this, and the system of applied payments is indicated in the smallest letters, which can be read only with a magnifying glass.
