If you’re in the market to apply for a vehicle finance loan for any make or model of car or finance for your home or even a personal loan. When applying for finance through a simple online application form. In most instances most bank websites and loan companies offer their clients a loan calculator for clients to see what the repayments on their new car, home or loan may be.
And in regards to the fees you’ll encounter such as interest, a cost that comes with borrowing money and just as in investments that pay interest. Your reward for making the investment is the interest you’ll earn.
While an interest rate is a percentage of the borrowed money, which the borrower has to pay as interest to the lender, over a period of time usually a year. If the interest is not paid back to the lender at the end of the term, but instead added to the borrowed amount, the interest is compounded. This means the interest payable on the original capital amount and any previously accrued interest.
And that’s why for instance your R1000 loan is never just a R1000 loan. Banks often express interest rates as a nominal figure, but they compound interest on a daily basis. This is because a little bit of interest is added to the borrowed amount, every day. Therefore make sure you read the fine print before you take out a loan, or make an investment.
If you’d like to see how different interest rates will affect your loan payments and total interest paid. You can use this loan payment calculator and do the Maths First with this Interest Rate Calculator South Africa. http://liberta.co.za/tools/loan_payment_calculator.php
This tool will calculate the monthly payment, effective interest rate, total interest and loan repayment schedule for a fixed interest rate loan.