Quite often, the population takes a loan from the bank for various needs. In the future, as often happens, the borrower begins to repay the amount taken ahead of schedule, and paying most of the money to the treasury. In the process, each person who has taken a loan raises a reasonable question about how to calculate the loan balance. As a rule, it is not beneficial for banks that the borrower pay the amount ahead of schedule, because they need to pay interest to depositors and make a profit. As a result, if you take a loan of several thousand, then the return will be 100% of the cost. Therefore, from the point of view of average human costs, taking a loan is not profitable. But there are times when funds are simply necessary, but no cash.
Credit terms and early repayment
The main condition for obtaining a loan at the bank is the time and date of repayment. These data are clearly indicated in the agreement. The borrower has the right to pay the loan not according to the established schedule, but much earlier if he has the financial ability. Advance payment of the loan can be made almost immediately after it has been received on the account of the recipient.
The borrower has the right to deposit the full amount to the bank at a time when it is convenient for him. If the question arises of how to calculate the loan balance for early repayment, then there are no difficulties. As a rule, on the websites of borrowers there are calculators that help to find out the amount necessary for payment. The majority of employees in banks, when concluding contracts or at the first payment, help to calculate the reduction of terms and payments. If there is a need to find out how much time and money could be saved, then independent calculators are present on the portals for this.
Early repayment of loan by type
As noted above, banks are not interested in paying out funds earlier than the specified dates. In fact, the main thing should be getting back the amount issued. However, credit organizations are directly interested in earning income on a certain schedule over the established time period. That is, interest is precisely in making a profit within the specified time frame. The most pressing issue for a mortgage.
In view of this, many banking systems do not provide the possibility of early repayment without fines or limits. Therefore, it is best to ask an employee of the organization about the conditions of transactions before applying for a loan. True, in most cases, lenders are not against early repayment of a loan, which can be of several types:
In the first case, the client pays the entire amount at a time, although it can be done several months after the payment of interest. That is, it turns out that the organization makes a profit within a certain period of time, and the borrower saves on the cost of the loan.
In the second case, the recipient of the loan funds deposits money to the bank account every month, but not the amount indicated in the contract, but most.
Loan repayment schemes
To repay a loan, you must choose one of two payment plans:
- With a decrease in the loan term. That is, the bank recalculates the time frame based on the monthly repayment amounts. As a result, the client saves on the interest rate.
- The term specified in the contract does not change. The borrower deposits a significant amount of money into the account, the organization recounts the schedule and the main debt. As a result, the borrower will save on overpayments.
Partial repayment is enshrined in law and is the direct right of the client. In case of early repayment, the structure of the contract does not change, the borrower will be given a new payment scheme and schedule. In order to realize a loan ahead of schedule, you need to choose a plan, write and submit an application to the bank.
Details and essence of prepayment
If you have questions about how to calculate the loan debt balance, you need to contact the manager of the bank in which the loan was taken or conduct an analysis through the online calculator. True, such situations, in most cases, arise after a loan has been taken. But, if a person just had a desire to apply for a loan, it is necessary to know in advance the conditions, systems, schemes and payment schedules.
In the case when the organization allows early repayment, the client must decide how much this option and the form will be beneficial to him. With a firm and clear decision and an agreement on the annuity type of payments, the borrower must adhere to certain rules:
- loan repayment application without visiting the bank;
- the manager to check the availability of funds received, this applies in particular to payments that are received by bank transfer;
- Having paid the final installment, it is necessary to keep the check and all information about the loan in order to eliminate misunderstandings.
Annuity payments advance interest. That is, when a question arises about how to calculate the loan balance, it is necessary to subtract from the original debt the amount deposited for the specified period, for example, 120 days and funds for early repayment. When paying a loan earlier than the deadline, the rates increase, as a result of the sale of all received money, the client pays a large amount, especially if, under the conditions, the funds were provided for a year, and the borrower paid them after 4 months.
How to calculate the loan balance?
To correctly calculate the payment amount, you need to find out the interest rate. For example, in most cases, a client borrows for six months or 12 months, and repays the loan after 90 days. But at the same time, the cost grows, it turns out that the borrower overpaid for the loan, as if he had used it for the entire period established by the contract.
If the payment of the loan is realized by agreement without early repayment, then interest is paid in moderation. Otherwise, the rate may be excessive. In such a situation, the client overpays on the basis of the actual contract.
So, in any early situation, to calculate the loan balance to Sberbank, you will need to perform several actions:
- you must contact the office where the contract was concluded;
- tell the manager that there is a need to repay the loan in full or pay an amount higher than indicated in the schedule of the agreement;
- after drawing up a new scheme, sign it;
- realize payment within the specified period no later than nine o’clock in the evening.
Sberbank constantly implements such loans to individuals and legal entities. Mortgages and car loans are especially popular. In addition, this organization offers the most favorable conditions for customers, where everyone can repay a loan ahead of schedule, however, the amount sold should be equal to fifteen thousand rubles.
Other features of loan repayment
Often, borrowers face a number of problems and fail to pay on time. Then the question arises of how to correctly calculate the balance on an overdue loan. If the amount could not be paid according to the established schedule, it will be necessary to realize the interest, penalty and the indicated amount of money under the agreement. But sometimes difficulties arise, and then the bank restructures the loan.
Such a decision of a credit organization may be convenient for the client, but not entirely profitable. On the other hand, it is very advisable for the bank, as the chances of getting back the funds raised increase. Restructuring is carried out if the borrower does not cope with the terms of the agreement, and represents certain ways to mitigate the system. However, such an extension reduces the monthly payment. Then the question of how to calculate the loan balance becomes relevant. Indeed, as a result, the term for the sale of debt increases, and the interest rate increases.
Actions for the new agreement and other lending options
To obtain a review of the time frame and previously established funds, you must do the following:
- contact the bank immediately;
- state a good reason in a statement.
The ways to mitigate the terms of the agreement are as follows:
- conversion of foreign currency debt;
- a delay or a break;
- liquidation of penalties, fines;
- recalculation of interest rates;
- prolongation.
Among other things, lending can be with a weighted average maturity. True, the average borrower will not come across a similar term. This term lives within the organization and provides for a profitable risk-based loan issuing strategy, and also provides for and analyzes all the organization’s investment activities. As a rule, on the basis of this system, the conditions for obtaining a loan are created. In view of this, the question of how to calculate the loan balance is decided taking into account the calculation of the total amount, interest rate and hedging of the risks of the selected transaction.