Interest payments. Fixed interest payment. Monthly loan payment

When there is a need to issue a loan, the first thing the consumer pays attention to is the credit rate or, more simply, the interest. And then we often face a difficult choice, because banks often offer not only different interest rates, but also a different method of repayment.

Bets and payments - what they are

There are several types and forms of loan rates, significantly different from each other. A person who has not been privy to the finer points of the work of financial organizations can find it rather difficult to understand this issue. Nevertheless, independently calculate the payment for the loan and the amount of overpayment and choose the most acceptable option for repayment is not so difficult. Of course, many banks offer to use the help of a loan calculator, but it's much more interesting to study the question yourself.

To begin with, it is worthwhile to know that interest rates are fixed and variable. The first option is initially prescribed in the contract and does not change until the end of its validity period, and the second assumes a periodic change in the interest rate depending on various factors.

Interest payments of a variable type are difficult to calculate independently, because it is necessary to take into account too many factors, so we will dwell in more detail on the percentage of permanent.

Annuity

The so-called monthly contributions under the loan agreement are called the same. This is one of the most popular ways to repay a loan today - for many borrowers it is convenient to make monthly payments of the same size. This allows you to clearly plan the family budget, taking into account the payment of a loan.

Interest payments of the annuity type include two components:

• The amount received to pay the interest itself;
• Means going to repay the body of the loan.

After a while, the ratio of these components gradually changes - the percentage component decreases, and the amount sent to repay the principal debt increases. The total amount of payment remains unchanged.

Thus, annuity payments cause a somewhat larger overall overpayment. This is because, at first, the amount of the principal debt decreases insignificantly, and interest is charged on the outstanding balance. Therefore, in the beginning, the main share of interest is paid. And only then there is a major repayment of the body of the loan, which is especially noticeable in attempts to early repayment.

Example calculation

For example, let's calculate the monthly interest payments on a loan in the amount of 600 thousand rubles for 3 years at 24% per annum. First, you need to calculate the interest rate on a loan in a month (P), for which the annual interest rate is divided by the number of months in a year (the result, of course, is divided by 100, because this is a percentage):

P = 24: 12: 100 = 0.02%

Now calculate the annuity factor (A):

A = P x (1 + P) N: ((1 + P) N-1)

P - rate% per month (in hundredths).

N - number of repayment periods (for how many months the loan was taken).

A = 0.02 x (1 + 0.02) 36: ((1 + 0.02) 36-1) = 0.02056

Next, we need the formula for calculating the annuity payment:

M = K x A

K is the total loan amount.

A is the annuity coefficient.

M = 600 000 x 0.02056 = 12 336 rubles.

Thus, if you want to take out a loan on the proposed terms, then you will have to pay for 12 months 336 rubles for 36 months.

Early repayment

Despite the fact that the loan payment schedule is stable and predictable in this case, many customers may wish to fulfill their obligations as soon as possible. It would seem that banking institutions should welcome the early repayment of debt, because in this way the risk of non-return is significantly reduced, but in practice this is far from the case. With early repayment of the loan, the bank loses part of the interest due to it, therefore, not every loan agreement provides for such a possibility, so this moment should be negotiated even before the conclusion of the contract.

To change the schedule of annuity payments, it is necessary to notify the employee of the credit institution and make a sum exceeding the usual payment. A bank employee will draw up a new schedule for you based on this, taking into account that the calculation will be carried out in such a way that the fixed interest payment will decrease and their amount will remain unchanged.

Advantages of annuity payment

Some may think that an annuity repayment of payment is absolutely not profitable, meanwhile in some situations it may be much better than a differential one. Especially when you have to pay interest on a mortgage - payments are quite lengthy in time and considerable in amount. Advantages in this case are obvious:

• You can apply for a loan even if your income is low;
• Small amounts of payment introduced make it possible to reduce the burden on the family budget;
• With the passage of time, the high cost of a loan is felt less, since the laws of inflation come into force.

Differential payment

No less popular in Russia is a scheme for repaying a loan, in which interest payments gradually decrease by the end of the loan period. Such a system is called a differentiated system and also consists of two parts:

• Fixed - the amount going to repay the principal loan;
• Decreasing - interest on the loan accrued on the outstanding balance;

As a result of the fact that the amount of debt is repaid in the first place, it is constantly decreasing, which means that the accrued interest also decreases. Thus, your monthly loan payment will no longer be a fixed amount, but will decrease from payment to payment.

It is worth knowing that if you choose a loan agreement with differentiated payments, then the loan rate will be significantly higher, which means that you will also have to confirm the monthly income sufficient to repay the loan.

Counting

We will spend a little time to calculate the differentiated interest payments. The formula for their calculation is quite simple.

П = К / N

P - payment.

К is the loan amount.

N is the number of months.

And to calculate the percentages we apply the formula:

% = О x Г% / 12

% - the amount of interest.

O - the balance of outstanding debt.

G% is the annual interest rate.

In order to receive the final payment amount, we will add everything together. Thus, by repeating these calculations the necessary number of times you can independently draw up a schedule of debt repayment.

How not to make a mistake in choosing

Before finally determining which bank to choose for the conclusion of a loan agreement, it is still necessary to understand for yourself such aspects:

1. Soberly assess your monthly income. When making a loan with a differentiated redemption system, the bank will evaluate your income, correlating it with the amount of the first payment, and in this case it is the largest.
2. In advance, consider the possibility of premature repayment - with annuity payments it makes sense only at the beginning of the maturity, towards the end of the interest will be already paid and reduce the total amount of overpayment will fail. So if you plan to repay the loan ahead of time - it's better to draw up a loan with a differentiated way of repayment.
3. Estimate the convenience of repayment. With consumer lending for household needs, you will most likely want to say goodbye to your debt quickly, but differentiated interest on mortgages may prove to be unbearable.

Conclusion

So, let's sum up the results again. A differentiated way of repaying funds is to be chosen by those who:

• Draws up a loan for a long time and plans to take a large amount;
• Has doubts about the long-term stable financial position, but at the time of issuing the loan, he is quite confident in his abilities;
• Wishes to minimize the amount of overpayment on the loan;
• Plans to repay the debt as quickly as possible.

Fixed interest payment is the best choice for:

• Borrowers who do not have the opportunity at the beginning to make large amounts of cash;
• Clients whose average monthly income does not allow making the first installment for a differentiated loan;
• People borrowed little and not for long;
• Customers seeking to plan the budget, counting on a fixed amount of payment for the loan.

As soon as the bank offers you a choice, carefully study both options, soberly assess their capabilities. Ask the bank's staff to explain to you how the future payments will be calculated. You can also print both versions and carefully study them in a quiet home environment, weigh the pros and cons. Then you can be firmly confident in your financial well-being.