Explanation of the cash loan calculator
The rounding system may differ from the one used by a particular bank, hence there may be slight differences in the calculation of loan installments in my calculator. It is often the case that the interest rate of 9.99% means an interest rate of 9.99 (9)%, or in practice 10%. This can also make a difference.
A “loan commission” means that a given cost is included in the installment. Another possibility is payment in advance – rarely used, in cash loans.
“Additional costs” can be specified in percentage or amount. For example, you can specify the average cost of a bank account for the duration of the loan. Often, along with a cash loan you need to open a bank account, set up a credit card, etc.
When calculating the cash loan installment, do not forget about insurance
Banks often give the size of the insurance premium as a monthly contribution added to the installment. The values seem very small, e.g. 0.009%. In fact, however, it turns out that insurance is several dozen percent of the cost of a cash loan provided by the bank. In the calculator I created a field in which you can enter the appropriate amount of the monthly contribution.
Sometimes banks give the amount of insurance as a% of the loan amount. Here you can use the “additional costs%” field by entering the appropriate value from the contract.
Cash loan calculator – calculate the actual cost of the loan
It is common that the bank does not provide the size of the installment and the total cost of the cash loan even after submitting the application. Only after signing the contract, it turns out that the installment is higher than you expected. Banks never give a way to calculate loan installments , which translates into the total cost of the loan. In the Shark loan calculator, you can also enter the costs that the bank did not provide in the information form, eg the amount of the personal account or credit card or preparation fee, which may not be credited (not included in the installment). In this way, you can calculate the actual cost of the loan.
What makes a loan installment cash?
When calculating the loan installment, enter the amount of the commission, interest rate and the amount of the insurance premium. Often, with the loans in the “Commission 0%” offer, other fees appear, for example, a preparatory commission or expensive insurance, which I wrote about in the previous paragraph. I also recommend my article ” For these 6 things, pay attention to the cash loan “, in which I write how the offers of banks are misleading – you think that the loan offer is cheap, and in fact it is expensive.