Last week we began to address the first five questions about personal loans and today we continue with more information on the subject.
How is the interest on a personal loan calculated?
The interest on each loan, depending on whether it is fixed or variable, is calculated from the total balance of its debt and is divided into the total days of the duration of the loan. Therefore, since not every month has the same number of days, it is possible that some months change the amount of interest we must pay.
What happens if I want to pay off my loan before the end of the agreed term?
Depending on the conditions of the financial institution, we will probably have to pay a fee if we decide to pay off the personal loan before the agreed months. Normally, this fee usually covers the loss of benefits that the lender will have when the borrower pays the amount early.
How can I calculate the amount of monthly payments?
Our monthly installment will be related to different aspects: the total amount of money requested, the number of months in which we will return them, the interest rate contracted, other variable charges … Depending on the type of interest we choose, as we saw last week, We can foresee what monthly amount we will have to pay in each payment.
If a month I cannot cope with the payment of the fee, what happens?
It may happen that a certain month we cannot pay the payment of our loan. If we are in this situation, we must take into account that we will have to pay the payment of the late receipt as soon as possible, since a commission is usually charged for late payment, as well as a larger amount of debt that accrues interest. If we anticipate that we can find ourselves in such a situation, it is best to try to talk with the lender to reach an agreement before we get an unpleasant surprise.