What Is a Simple Loan?

Most people borrow money at some point of time in their life. One of the easiest ways to know what is a simple loan. Is that when you borrow a sum of cash from the lender and, in exchange, comply with repaying the amount plus interest over a selected period of your time. Loans are often acquired from financial institutions or individuals—and are often used for a range of purposes, like for the purchase of a car or a home, to start out a business, or to consolidate other debts into one.

Simple Loan Calculator Use

Use this simple loan calculator for a simple loan calculation of your monthly payment together with the interest paid on the loan.

Total Interest Paid on a Loan

The total amount paid with interest is calculated by multiplying the monthly payment amount by total months. Calculation of Total interest paid is calculated by subtracting the loan amount from the whole amount paid.

How many loans can I Afford?

Budgeting for an expense that requires a loan then it works best if you begin with a calculator. Before you create any purchase that involves taking out a loan, it’s wise to research today’s interest rates and find out what you’re likely to be charged to borrow. Loan costs depend upon three things: what proportion you’re borrowing, the rate of interest that you’re being charged, and therefore the term of the loan—the number of years you’ll tend to pay it back.

When you will know these three key factors, you’ll see how much things can change. Let’s say that you simply want to borrow $15,000 for a home renovation at 5.9%. If your loan term is three years, then your monthly payment is going to be $455.65. If it’s five years, it goes right down to $289.30. And if that renovation budget gets high up to $25,000, then your three-year payment is $759.42, and the five-year is $482.16. Spreading it out into 10 years it will be $276.30. That’s 10 years of interest payments, which isn’t an excellent deal.

As you discover possible deals, plug each into the calculator and see what they might cost you. a method to track the various configurations of the rate of interest, loan amount, and the loan term is to create a spreadsheet to form some quick comparisons.

Loan Smarts

Before you sign anything, be careful with a prepayment penalty within the fine print of your loan agreement. If you get a raise or other unexpected financial windfall, this might cause problems. A prepayment penalty means you would be charged extra if you’re ready to pay off your loan before its term.

Present law protects borrowers from discriminatory lending practices, but that doesn’t mean all financial institutions or individuals follow that law. Get on the lookout for discrimination and scams. Loan scams often involve fake loan offers that plan to collect your personal information.

Laws forbid lending discrimination based on color, religion, sex, national origin, handicap, familial status, age, and whether you receive public assistance income. These are all considered protected classes. But lending discrimination happens. If you think you’ve got been discriminated against, you’ll be able to submit a lending discrimination complaint online with the Consumer Financial Protection Bureau.

And at the end, if you are facing any issue while using the calculator or any inquiry related to it you can contact us.