Everyone faced the problem of lack of money for the purchase of household appliances or furniture. Many have to borrow to pay. Some people prefer not to go to friends or relatives with their financial problems, but to contact the bank right away. Moreover, a huge number of loan programs are offered that allow you to solve the problem of buying expensive goods on favorable terms.
What is a loan?
This system of economic relations provides for the transfer of values from one owner to another for temporary use on special conditions. In the case of banks, money is such a value. A person needs a certain amount, an economist evaluates the solvency of the client and makes a decision. If everything is in order, the necessary funds are provided for a certain period. For this, the client pays the bank interest.
Not enough money to buy goods or need cash? It is worth taking a loan. A low percentage always attracts customers. Therefore, popular financial institutions provide credit cards and cash loans on favorable terms. And the formula (calculation of interest on the loan) will help you figure out how much the bank will have to pay for the service.
Overpayment
In the case of a bank loan, money is used as a commodity. For the provision of services, the client must pay a fee to the financial institution. To understand how the amount of overpayment is calculated, it is worth understanding the following concepts:
- loan body;
- commission;
- annual interest rate.
The repayment system, as well as the loan term, are important. This will be described below.
What is a loan body?
The amount that a person borrowed from the bank, this is the body of the loan. As payments are made, this amount decreases. It is on the body of the loan that interest is accrued, and in most cases commissions.
Consider an example. The client executed a loan agreement on May 1 in the amount of 20,000 rubles. A month later, he made a minimum payment of 2,000 rubles. Of this amount, 500 rubles were spent to repay the interest on the loan, and 1,500 rubles - to repay the body. Thus, on June 1, the loan body decreased to 18,500 rubles. In the future, all interest will be accrued on exactly this amount.
Commission
The interest that the client gives to the bank in excess of the interest rate, this is the commission. Different financial institutions may offer different loan conditions. The commission can be charged both on the loan body and on the amount that the client borrowed initially. Recently, many banks refuse to commission at all and set only the annual interest rate.
Consider an example with a fixed commission of 0.5%. The client took a loan in the amount of 10,000 rubles. The monthly commission will be 50 rubles. The formula (calculation of interest on the loan) looks like this: 10,000: 100 X 0.5.
If the commission is not fixed, it is charged on the balance of the debt (loan body). This option is more beneficial for the client, since the amount of interest is constantly decreasing. As a rule, a commission is charged on the balance of the debt as of the last business day of the month. That is, if the client paid the entire amount on the 28th day, and the last business day falls on the 30th, you will not have to pay a commission.
Annual interest rate
In the absence of a commission under the loan agreement, the annual rate will be the basis for calculating the overpayment. Interest is always charged on the balance of the debt. The faster the client repays the loan, the less he will have to overpay.
How much interest does the loan provide? Different banks offer their terms. It is possible to take money at a rate of 12% to 25%. Next, it will be described how the calculation of interest on the loan (formula) is carried out. Example: a client took a loan in the amount of 10,000 rubles. The annual rate under the contract is 15%. On the day the client will overpay 0.041% (15: 365). Thus, in the first month you will have to pay the amount of interest in the amount of 123 rubles.
10 000: 100 x 0,041 = 4 rubles 10 kopecks - the amount of overpayment per day.
4.1 x 30 = 123 rubles / month. (provided that the month is 30 days).
Let's consider further. The client made the first payment in the amount of 500 rubles. There is no commission under the contract. 123 rubles will go to interest, 377 rubles - repayment of the body. The rest of the debt will amount to 9623 rubles (10,000 - 377). This is the body of the loan, on which interest will be charged in the future.
How to quickly calculate overpayment on a loan?
It is difficult for a person who is far from the financial sphere to make any calculations. Many banks offer a loan calculator for customers, which allows you to quickly calculate the overpayment under the contract. All you need to do is enter the amount of the debt, the expected payment period and the annual interest rate on the institution’s website. After a few seconds, you will be able to find out the amount of the overpayment.
A loan calculator is an auxiliary tool that allows you to tentatively calculate the amount of the expected overpayment. The data is not accurate. The amount of overpayment depends on the amount of funds that the client will deposit, as well as on the loan repayment term.
What are the loan repayment systems?
There are two options for repaying a loan. Classic provides for the payment of a certain part of the loan body and interest rate. Example: a client decided to take a loan for a year in the amount of 5000 rubles. According to the conditions, the annual rate is 15%. A monthly loan body will have to be paid in the amount of 417 rubles (5000: 12). The formula (calculation of interest on the loan) will look like this:
5000: 100 x 0.041 = 2 rubles 05 kopecks - the amount of overpayment per day.
2.05 x 30 = 61 rubles 50 kopecks (provided that there are 30 days in a month) - the amount of overpayment per month.
417 + 61.5 = 478 rubles 50 kopecks - the amount of the required minimum payment.
In the classical repayment system, the amount of payments decreases every month, since interest is accrued on the remaining debt.
The annuity system provides for the repayment of the loan in equal installments. Initially, a fixed minimum payment amount is set. As the debt is paid, most of the money goes to repay the loan body, since the interest overpayment decreases.
Consider an example. The client decided to take a loan for 10 years in the amount of 100,000 rubles. The annual rate is 12%. Overpayment per day 0.033% (12: 365). The formula (calculation of interest on the loan) will look like this:
100 000: 100 x 0.033 = 33 rubles - the amount of overpayment per day.
33 x 30 = 990 rubles - the amount of overpayment per month.
The minimum payment can be set at 2,000 rubles. Moreover, in the first month, 1,100 rubles will go to repay the loan body, then this amount will decrease.
Penalties
If a bank customer does not fulfill its debt obligations, the financial institution has the right to charge a fine. The conditions must be described in the contract. A fine can be presented either in the form of a fixed amount or in the form of an interest rate. If according to the agreement penalties are provided in the amount of 100 rubles, for example, the amount of the next minimum payment will not be difficult to calculate. It is only necessary to add 100 rubles.
Things are more complicated if penalties are charged in the form of an interest rate. As a rule, the calculation is based on the amount of debt for a certain period. For example, a client had to make a minimum payment of 500 rubles before May 5, but did not. According to the contract, the penalty is 5% of the amount owed. The next payment will be calculated as follows:
500: 100 x 5 = 25 rubles - the amount of the fine.
Until June 5, the client will need to pay 1025 rubles (two minimum payments of 500 rubles and 25 rubles fine).
Summarize
It is not difficult to calculate interest on a loan yourself. One has only to carefully study the terms of the contract and use the formulas described above. Special credit calculators, which are presented on the official websites of financial institutions, facilitate the task. It is worth remembering that only an approximate calculation is made. The exact amount may depend on many factors, such as the loan term, the amount of payments, etc. The shorter the loan term, the less the overpayment.