To date, lending in our country is a common, relevant and widespread phenomenon. A huge number of MFIs, banks, credit consumer cooperatives and other financial institutions are ready to offer their potential customers all kinds of lending programs. It is difficult to choose one of them, the most suitable and as profitable as possible, tomorrow’s borrower is quite difficult.
How to determine the real value of a loan
Undoubtedly, when choosing a credit program, he will focus on the bank’s claims to the candidacy of the borrower, and for the permissible deadlines of the loan repayment, and for the maximum loan amount that the bank can provide to him. But first of all, almost every future lean holder turns its attention to the value of the interest rate. It is according to this criterion that Russians choose the banking program of lending.
How to determine the real value of a loan
And this is not surprising, because the lower the value of the annual interest rate, the less overpayment on the loan. This is what lenders in television advertising, radio and other media, misleading thousands of people focus on this. After all, the value of the interest rate is far from the full cost of the loan. Therefore, not a single credit calculator proposed by hundreds of sites for calculating the amount of the monthly payment and the percentage of overpayment will give an exact result. After all, this virtual computing machine does not take into account the amount of all commissions, additional payments, fees, fines and penalties that the creditor bank will have to pay, in addition to the accrued interest on the loan.
What is the real value of the loan:
An annual interest rate
These are interest accrued on the loan, the amount of which potential borrowers pay attention when choosing a lending program.
Main debt (loan body)
This is the amount of the loan that the borrower takes in a banking institution. For the use of this amount of funds, creditors accrue interest.
Commission fees
It is the availability and amount of commissions that the creditors are so carefully trying to hide from their customers, who do not suspect that for the opening of a bank account, for issuing and issuing a loan, for serving a loan, for maintaining a loan account, they will have to pay a certain amount to the bank-creditor. Commissions can be both one -time and monthly. Particular attention to potential lender should be paid to commission fees charged by a financial institution for conducting a credit account. The amount of such commission fees can be fixed, or may depend on the remainder of the main debt and calculate as a percentage.
The lending agreement must contain a clause that indicates both the types of commissions and their amount, which the borrower will have to pay on this loan. But people who sign a credit agreement with lenderers rarely pay attention to this clause, especially since creditors do everything for this: information about the commissioned fees provided for a loan can be found at the very end of the loan agreement. And you can not find it, since it is printed in small print, so that the borrower does not occur to get acquainted with these important information.
Additional costs and payments
Additional expenses include the payment of the appraiser’s services if a person draws up a loan secured by vehicles or real estate object, and life insurance, health, disability or title when applying for a mortgage loan, car loan, etc.D.
Additional payments, which are penalties and fines for delay or other violations of the credit agreement, can be avoided if the loan funds to the bank-creditor in a timely and full. True, penalties can be accrued for premature repayment of the loan, but their amount in this case will be insignificant.
How to determine the real value of a loan
Thus, calculating the real interest rate on the loan is quite simple: you need to add all the above components. The amount received will be the full value of the loan, which should be indicated in the contract with the bank. The size of an effective interest rate (the average value of the real value of the loan, calculated by the formula), creditors do not have the right to hide from a potential lean holder – this is a violation of the current legislation. Although many MFIs work according to this principle.
In conclusion, I must say that when choosing a loan program, you should not be guided only by the value of the interest rate. Often, lending programs for which high interest are provided are much more profitable than loans with a low interest rate and with a lot of hidden additional payments.