Business Loan Calculator
How to Use Our Loan Repayment Calculator
“How much will my monthly repayments be?” The one most common question that almost every single borrower will ask. Look no further! Get those digits right here with our business loan calculator. No matter the quantum or tenure of your new loan, our loan repayment calculator will tell you how much your monthly repayments are, in just a matter of seconds. To get a good idea of how much you will be paying back monthly, simply key in the loan amount, term in years, and the proposed interest rate from the bank. In the following paragraphs, we will also be touching on how to understand the results.
Under ‘Monthly Instalment’, the figure that you see will be the monthly repayment amount that you will have to service on a monthly basis until the debt is cleared. Therefore, be sure to do some calculations and make sure that the monthly payments are sustainable before committing to a loan.
Moving on, you will also see ‘Total Interest Charged’, which is a figure that is dependent on the loan amount and total tenure offered. The total amount of interest can vary depending on both your interest rate and loan term. However, not to worry, this segment will share a little bit on how to save on interest rates. In some cases, carrying out an early redemption or refinancing of a loan will help to lessen the total amount of interest paid. When a refinancing occurs, it is the simple process of a loan being transferred over to another bank, where you will most likely be offered lower interest rates.
What Is The Difference Between a Secured Loan and an Unsecured Loan?
When talking about debt financing, there will always be two types of loans, namely the unsecured loan, and the secured loan. A secured loan is basically a loan that is taken up in exchange for a valuable asset that the lender takes as collateral. Collateral is a valuable asset that is used to provide security for a loan, so that the lender can seize it in the event of a default. By default, mortgage loans and car loans are by its own nature, a secured loan, because the loan is secured by the property or the vehicle. On the other hand, unsecured loans are largely based on trust, that the borrower will pay his monthly installments. However, if the borrower fails to make payments, the lender does not have any collateral that he can use to secure his risk exposure. Essentially, this means that unsecured loans will always be much riskier than secured loans, which in turn, would also mean that the interest rates for unsecured loans will always be higher than secured loans.