I casually responded to USD 100,000, discouraged by another attack on my personal data. I think that they will give up now. However, surprised I hear this answer.

“By all means, you can apply for such an amount, if you want, I will calculate the monthly installment”

I think – why not, and a knife I would buy a flat – a studio in the middle of the city. I hear this lady knocking something on the computer and in a moment I find out that the interest rate is about 30% for 84 months, but she can’t calculate right away because she has a problem with the computer and if I will mind if she calls in 15 minutes. I thought that I would not mind, it will happen to everyone, and computers already have it.

I calculate the loan installment myself

I calculate the loan installment myself

I think – I’ll be smarter and count everything myself. There was no such philosophy in this, because multiply 100,000 by thirty percent anyone can, then divide it by 84 months and we get about USD 1,500 a monthly installment. I think this is the amount within my earnings as much as possible and I would be able to afford it. In a moment I can hear the telephone ringing, I pick up the bank’s standard song again (I’m calling from here, recorded call, etc.).

“The loan installment would amount to USD 2,150 per month”

Hmm … After all, it was supposed to be 30%, so how did USD 1,550 come from USD 2,150?

I ask about the cost of credit and after many turns and understatements I find out that it is 80,500 USD, i.e. being colloquial, almost the same as I borrowed.

I ask indignantly why such a great installment, after all you told me about a different interest rate.

“That’s right, but the interest goes to the margin, insurance and commission, and remember …”

At this point, I hung up because I felt a bit cheated by the bank, which until now seemed fairly level. Unfortunately, cash loans in such high amounts must apparently be this way.

What does the loan installment consist of?

What does the loan installment consist of?

Well, you ever wondered what the loan installment consists of? Perhaps my pressure increased unnecessarily, maybe it’s my fault that I don’t know much about finances. I decided to look for information on this topic and what I found.

So in the basis it looks like this:

Credit interest rate

This is the first issue that makes up the installment. For mortgages, the interest rate is calculated on the basis of interest rates imposed by the Central Bank, as well as on the basis of market rates. Therefore, we calculate the interest rate on the main amount, which can be for example.

Credit margin

This is the income the bank has on the loan. The bank calculates the margin on the capital part, so if it is 10%, then we multiply the loan by 10% and we will get the margin.

Credit insurance

Credit insurance

Most loans, and mainly mortgage loans, have compulsory insurance, such as job loss insurance, life insurance or mortgage insurance, real estate insurance.

Credit capital

And of course the basic issue related to credit, i.e. the capital we borrow. This is also included in the installment.

These are the basic issues that are included in the loan installment, but if you have any doubts, immediately contact your bank representative and ask him about taking the loan there.

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