Applying for a loan is a big decision. You need to be completely sure and confident that the loan is important and you can repay the loan without any problem. Also, you need to be well informed about some specific things regarding loans. In this article, we are going to talk about those topics. Calculate your loan amortization schedule with extra payments with the help of our calculator.
Through what means do organizationsoffer loans?
Organizations offer different types of loans to meet the needs of customers through credit cards, mortgage loans, loans for the acquisition of durable consumer goods, and car loans.
What is the role of interest rates?
The loans are not free, so the debtor, at the time of returning the money to the creditor or before, must consider adding an additional payment to which is called “interest” and is expressed or disclosed through the rate interest, which will be the principal cost of that loan.
The interest rate is expressed as a percentage in a given period. If the organization offers a rate of 10% per year for granting money on loan, this means that the person who received that loan must pay the sum of money that the organization lent him plus the equivalent of 10% of the money borrowed for each year elapsed of the loan. If you want to calculate the interest rate in each installment, use our loan amortization schedule with extra payments calculator.
What information does the bank assess before granting a loan?
- Payment capacity
- Solvency and equity
- Debt level
- Have proof of income
- Age
- Job stability
- Have a good credit history
What depends on how much money the organization lends?
The amount of loan that the organization can grant you is conditioned on your monthly payment capacity (which ensures that the payment of the loan that you will make does not affect your other obligations) and the term you choose.