When looking for the best loan offer for yourself, you should first pay attention to its total cost. Attractive terms of cooperation and a minimum of formalities should not be the main selection criterion, although it cannot be denied that these issues are equally important. It is important, however, how much the loan costs, because it defines the amount of subsequent installments. What does it cost?
What does the loan installment contain?
When browsing the offers of individual lenders, you may notice that they differ in the amount of interest. This is not the only parameter that affects the total cost, as all fees are included in the APRC indicator. It is the Actual Annual Interest Rate that affects how much you will have to pay the lender for the money you borrow. The APRC includes:
nominal interest rate,
other service costs.
As it turns out, the amount of the loan you receive is not synonymous with how much you will be required to pay back. It is worth remembering, however, that in the case of payday loans for new customers, you can take advantage of a free, first loan. If you return it within the set deadline, you will not have to pay any fees. In the case of an installment loan, you have to face additional costs.
How to calculate the cost of the loan?
Loan companies provide their clients with tools that can be used to calculate installments conveniently. All you need to do is specify the loan amount and repayment period to view the monthly installment amount. In addition, special calculators are available on the Internet that, after entering the required values, will automatically calculate how much the loan costs.
What fees should I pay attention to?
After the introduction of the anti-usury law, loan companies no longer have so much freedom in determining the cost of a loan. The nominal interest rate may not exceed four times the Good Finance loan rate, but you cannot forget about other fees. When choosing a loan, pay attention to such parameters as commissions or preparation fee, because they are largely responsible for the installment amount. You should also be guided by the APRC indicator, which includes all the costs of a given loan.
Ranking of loans with the lowest installment
The market for non-bank products is very diverse in terms of fees and terms of cooperation. Instead of analyzing the cost of each offer separately, it’s a good idea to use the loan ranking. It contains a list of the most attractive offers in a given month, and also allows you to compare the parameters of a selected loan.
Information on fees is added to each company’s proposal, which is added to the basic loan amount and affects the repayment schedule. Paying attention to such elements, you will find the best financing option to the best of your abilities and you will not be exposed to high costs of the loan.