Use the payments calculator to calculate how many payments are required to repay a fixed amount of money, a mortgage for example. The Payments calculator returns the number of payments remaining.
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Borrowing money when needed is never easy. Perhaps the process of borrowing has become relatively easier than before with the latest technologies in picture. However, we still face challenges when deciding on repayments.
The term "Repayment" is used to define the act of paying back the money that was borrowed from a lender. These payments are generally made on a monthly basis when borrowed from the banks; could be quarterly, semiannually or yearly in case of some private lenders.
Repayment amount generally consists of interest and principal and is paid periodically as per the selected term. Common type of loans that the majority of us use are: mortgages, personal loans, auto loans, payday loans, education loans all require repayments. Often credit card charges are also converted into smaller repayments rather than paying lump sum amount of total usage.
A payment calculator is an online tool designed to do the calculations of the repayment period in the simplest way possible. In order to use the iCalculator's payment calculator, you will need to fill the following details in the respective field.
To take any kind of loans there are a bunch of things that you should consider before signing any permanent contract. Some of the most important factors that can have an impact on your repayment are listed below:
Other than accommodation and food, there are many things like transportation, cost of your kids' education, expenses of other daily necessities. Before taking any loan, you must consider all the aspects and decide how much percentage of our income can you actually afford to part with for repaying your borrowings.
In recent years, borrowing has become quite expensive. However, there is also competition in the market. It is always advisable to check with different banks/ NBFCs and compare the repayment options they are offering.
It could be quite tempting to opt for a longer tenure since it shows the small repayment amount. You should be aware that the longer the tenure the more interest you will pay. If a 5 years loan is costing you 55%, the total interest will shoot up to 110% if opted for 10 years term.
Though it may seem unlikely at the time of taking loan, but it is quite possible that you might be able to prepay the loan. Almost every bank applies charges on the prepayments. It is always a good idea to know it beforehand and ask for a deal with least or without prepayment charges.
The purpose of borrowing is the most basic factor to be considered before borrowing. In other words, borrow only if you can't do without it. Also, It is never advisable to borrow money for investment purposes. Safe investments like FDs would not be able to match the interest rates. Other investments that offer high returns come with a high risk.
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