Before getting a loan, there is a fair desire to calculate how much you will have to overpay for this bank service. By law, banks are required to provide information on the effective interest rate, which includes the loan rate and additional costs of the client.
Instructions
Step 1
In order to calculate a bank loan, it is necessary to take into account several factors: the term of the loan, the interest rate, the borrower's income. With the help of a loan calculator, the borrower can already find out the approximate amount of the loan by filling in the corresponding fields on the banks' website. If the bank's product is a plastic card, in addition to payments that you must make on a monthly basis, you must deposit funds for the annual service of the card (in some banks the amount is withheld from the first year of service, in others from the second). In addition, financial institutions practice insurance of loans that borrowers take. Accordingly, a monthly payment is also charged for the performance of this service, but in the event of an insured event, the insurance company is obliged to pay off all debt to the bank instead of the borrower.
Step 2
Based on the borrower's income and age, the loan term and the maximum amount that the client can count on is selected. An interest rate is assigned depending on the bank's product (mortgage, consumer loan, plastic card or car loan). It is very difficult for a client to independently calculate what the total loan amount with accrued interest is. Reputable banks provide customers with payment schedules with monthly payment of debt, interest and the final amount of overpayment for a certain period. Only in addition to this amount, the final loan amount is affected by the payment of various commissions for depositing funds (for example, through payment terminals, if the client does not have an ATM in the city for depositing funds).
Step 3
If you have a plastic card, then in addition to the minimum payments that you are required to make monthly, the final loan amount will be affected by the commission for withdrawing cash (in some banks it is quite significant and can go up to 2.9% + a fixed amount).
Step 4
In order for the final loan amount to be minimal, it is necessary to pay off the debt to the bank as soon as possible, so that the amount of interest for using the loan is small. But many banks have a moratorium on early repayment in the first few months or a fine.
