Calculating Simple Online Loans, Follow the Way!
Simulating online Good Credit loan calculations is a must when applying for a loan to know how much we can afford. But doing calculations of online Good Credit loans is not easy.
Unsecured credit or better known as Good Credit is one of the types of loans provided by the bank without the need to guarantee or guarantee any asset. Good Credits can be applied in two ways – offline and online.
If you are applying for a Good Credit loan offline
Then you should come to your nearest bank branch and submit it directly to your bank officer. But if you choose to apply online, then you don’t have to bother coming to the bank. Just visit the official website of your online mortgage loan bank and you can apply online . Please note that this online Good Credit loan has its advantages and disadvantages, namely:
- Applying is easier because it’s done online
- The process of disbursement is fast because the entry requirements document is digital
- Credit limits are huge because they can reach hundreds of millions
- The tenor term can be up to 60 months
- Can be used for any purpose
- Loan interest rates are quite high
- Must have a credit card with a minimum of 1 year
But before applying for an online Good Credit loan, it is highly recommended that you do a calculation simulation. The goal is to see how much you can financially afford to pay off the installment debt so that each month’s installment can be paid off in a timely manner.
Terms Available In Online Good Credit Loan Calculation
For a Buddy who will perform an online Good Credit loan calculator simulation, you should first understand some of the most commonly used terms, namely:
It is a financial institution that lends a large sum of money through the credit system to the public Examples of financial institutions that are lenders are banks, pawnshops, and fintech companies.
A cash lender to a financial institution with a credit rating over a period of time.
- The borrowed floor
This is the limit of the loan amount or the amount of the loan lent to the debtor. The loan ceiling has the minimum and maximum amount of loan funds.
- Tenor period
It is the term of the loan that the lender gives the lender to repay the loan. Credit uninsured tenants typically range from 12, 24, 36, to 60 months.
- Installment / installment
The amount of funds to be paid or disbursed on a monthly basis during the tenor period. The amount of these funds can be fixed and can also vary depending on the type of interest charged.
- Interest rate
This is the amount of interest to be paid each month along with the installment or installment of funds. In the online Good Credit, the most commonly used rates are flat rates and floating rates . The flat interest rate is a flat rate where the interest rate and installment remain the same so that each month the installment payment amount remains constant until the end of the tenor period. Whereas floating interest rates are different per month depending on the movement of interest rates on the market.
Online Good Credit Loan Calculation Simulation
Now we’re going to simulate online Good Credit loans online . HelloMoney.com will provide one example case for you. Let’s say you want to take out a $ 120 million online Good Credit loan for home renovations. Interest rates are 10% flat interest per annum with tenor installments taking 12 months because you don’t want to owe it too much. Then the calculation of the credit simulation without the collateral is as follows:
Basic installment: $ 100 million: 12 months = $ 10 million per month
Interest charged: $ 100 x 10%: 12 months = $ 1 million per month
Monthly installments payable: $ 10 million + $ 1 million = $ 11 million
So every month you have to pay a $ 11 installment until the tenor ends up being 12 months. Then what if your financial ability to pay off Good Credit’s installment debt is less than $ 11 million a month? Relax Dude, you can change the tenor installment period to 24 months to make the monthly installment lighter.
If it takes 24 months, then its online Good Credit calculation simulator turns out to be this:
Basic installment: $ 100 million: 24 months = $ 5 million per month
Interest charged: $ 120 million x 10%: 12 months = $ 1 million per month
Monthly installments payable: $ 5 million + $ 1 million = $ 6 million per month
It doesn’t appear that, taking ten months’ installment tenure, the amount of monthly installments you pay becomes smaller, which is $ 6 million per month.
Indeed, in comparison, the total interest payable should be greater if you take the longer tenor. But rather than having difficulty paying monthly installments and risking delays or late payments, it’s best to take a longer tenor to pay off the Good Credit installments on time.
Is Calculation of Online Good Credit Loans with Online Loans?
Then what about calculating for online loans? In fact, this online loan calculation is the same as the online Good Credit loan calculation. Just for online loans, interest is calculated by day, not by month. This is why interest rates online are so small compared to online Good Credit loans.
Let’s take a look at how online loans are calculated. Let’s say you want to take out a $ 10 million online loan for a hospital fee. The interest rate charged is 0.5% per day with the tenor tenure taken 90 days (3 months) because you do not want to owe too much. Then the simulation calculations of the online Good Credit loan calculations are as follows:
Basic installment : USD 10 million: 3 = $ 3.3 million per month
Interest charged: $ 10 million x 0.5% x 30 days = $ 1.5 million per month
Monthly installments payable: $ 3.3 million + $ 1.5 million = $ 4.8 million per month