How are the fees of each personal loan?
The different types of credits with personal guarantee have a different refund process. In addition to providing us with different amounts of money, the term to return them varies from one to another. Thus, to calculate the share of a personal loan the first thing is to know the number of installments that we will have to pay as well as what type of credit is involved:
Mini-credits: the mini-loans offer us small amounts of money ranging from 50 to 1,000 € in general in a matter of minutes. These products were designed to cover small financial contingencies urgently. Its term usually has a maximum of 30 days and is usually returned in a single installment that will include the total amount borrowed plus interest. The cost of these products is around the daily interest of 1.1% per day, so a mini-credit of 100 euros will generate interest of 33 euros in the 30-day period.
Quick loans: these loans offer amounts of up to € 5,000 to the mini-credits with a very similar speed of concession and the possibility of a refund in monthly installments ranging from three months to three years in most cases. The cost of these loans is around 6% per month.
Personal Loans: this type of financing offers us amounts ranging from 2,000 to 100,00 euros on certain occasions and without the need to provide a guarantee. The payment of monthly installments of these loans is made over long periods ranging from 3 months to 10 years. These installments include in their amount part of the capital loaned and another part of interest. The average cost of these loans according to the latest Bank of Spain study is 8.83% APR.
The importance of calculating the loan installment
Although the first thing we consider when we apply for a loan is to choose one whose amount covers our need, knowing how much we will pay in each monthly payment is of vital importance. This is because, with these data, we will know the final price of our credit. In addition, there are two main considerations when choosing the quota of our personal loan:
Calculating the amount of a loan will help us decide how many monthly payments we are going to pay. This fact is of vital importance because it will allow us to save money in interest since these are generated over time. Therefore, with a higher quota, we will reduce the number of monthly payments and the time of interest generation.
To calculate the percentage that this quota supposes with respect to our income is also of vital importance. The recommended payment in the return of credits must not exceed 35% of our monthly income.
So, if you have an income of 1000 euros (whether for salary, unemployment benefit, disability or a pension), we should not choose a quota higher than 350 euros. This statement is not applicable to everyone, because someone with a higher salary can afford a higher quota than this percentage of their income and continue to face the rest of their daily payments.
How do quotas affect the final price of a personal loan?
While the loans may involve a series of expenses such as commissions or the purchase of insurance and other related products, interest is the main indicator we are targeting to know the value of a product. These interests are what will tell us the amount that we will reimburse as payment for the transfer of capital. The main characteristic of the interests is that they are generated over time. Therefore, by choosing a shorter term for our personal loans, we can save money by avoiding the generation of interest for longer periods.
How is the personal loan fee chosen?
Payday loan lake forest grant payday loans has adapted to the evolution of technology. Thanks to this adaptation, it is possible to avoid negotiations in bank offices or private equity companies to request the desired amount or to set the number of installments we will pay.
On the website of many lenders, we can see a loan calculator with which we can choose the amount to request and the term in which we want to repay the credit. Once these two variables are selected, we can check the interest of the credit for these conditions.
In addition, most websites will inform us about the total capital that we must pay to reimburse the total personal loan that we request. After accepting these conditions, the application process will begin by filling in the forms to provide the information that the lender requires to study our profile.
Methods of repayment of loan installments
The repayment of the installments of our loan can be made in several different ways. Some lenders offer a default refund method, but others allow us to choose the option we prefer from the following:
Bank transfer: these transfers can be made from the online banking of our bank’s website, from the mobile applications that many have or from the bank’s office.
Income in cash: it is a usual option in the reimbursement of mini-credits. It is based on going to the office of a bank with which these lenders work and depositing the credit money in your account. You have to remember to report our identity correctly as well as the income concept to make sure that the lender identifies the refund as ours.
Direct debit: when the installment is paid, the payments will be taken directly from our checking account on the monthly payment dates of the credit. This is the most comfortable option for personal loans of a greater amount, since its term may entail a greater number of monthly payments.
Payment by card: the less usual option is to make the payment through the website of the lender as if it were an online purchase. Recommended only with mini-credits, because we only have to make a full payment.
The way in which we reimburse the money of a loan will be chosen depending on the type of financing requested and also on our circumstances. Thus, direct debit is the most convenient way to repay the multiple monthly payments of a personal loan, while a transfer or cash deposit is the most common in the payment of mini-credits.