Examples of Lender Annual Interest Rates

 

Below are examples of quick credit GPLs, provided that the borrower borrows € 100 with a 30 day repayment term and no discounts or loyalty programs.

APRC is the annual percentage rate of charge, the total cost of the credit

APRC is the annual percentage rate of charge, the total cost of the credit

Lender Amount of loan Term of the loan Principal and interest GPL
Manny Personal Loan $ 100 30 days 109.50 € 201.67%
Dedors Credit $ 100 30 days $ 110 218.87%
Vendal Credit $ 100 30 days $ 110 218.87%
DATCredit $ 100 30 days $ 110 218.87%
Gederlon Credit $ 100 30 days $ 110 218.87%
Jonny Loan $ 100 30 days $ 110 218.87%
Cara Loan $ 100 30 days $ 110 218.87%
Bedolas Credit $ 100 30 days 112.50 € 319.59%
Heidie Loan $ 100 30 days 114.75 € 433.32%
Credit 56 Loan $ 100 30 days $ 120 819.12%
Lovern Loan $ 100 30 days $ 120 819.12%
Gerly Loan $ 100 30 days 127.50 € 1821.08%

 

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They are expressed as an annual percentage of the total amount of the loan, including the credit granting commission, excluding any total cost of the credit to be paid by the credit company for any default under the credit agreement, calculated in accordance with Cabinet of Ministers Regulations as set forth in the Special Terms.

There are several tips on how to buy a car spare part at a reasonable price with just a little investment of your time, as you might try to sell a car for 5 euros at a car parts shop, but at a premium of 500% of the true price.

An example of an annual interest rate calculation is

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Credit amount: € 100.00, Credit fee: € 10.00, Registration fee: € 0.01, Credit term: 30 days. GPL = 219.2%. The total amount to be paid on the loan repayment term is 110.01 €. The website lists the exact annual interest rates for each loan amount
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What is interest?

This can be imagined is a simple question that everyone should know the answer to but unfortunately it is not at all. Many people, for example, who have been in financial trouble, simply have too little control over what interest rates are. Therefore, it is time for me to review this word.

What interest rates are and other things that you really need to know should be what the schools teach, but unfortunately it seems to be bad on that front. Personal finance should be one of the most important things to teach at secondary school / high school. Learning to play drums (really hated it) or some more advanced math, for example, is something very few people will have any use for in the future. Without doing a more thorough investigation, I feel pretty confident that significantly more in the past month have paid a bill than the number who have played drums.

It should be a great basis in school to teach what to think about in our everyday lives. Maybe the schools have gotten better since I left the system, but for them to be good I find it hard to believe as many young people end up in big problems.

Interest is the price that someone pays when borrowing money

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If you deposit money into a savings account, it is the bank that borrows money from you and thus you get paid in the form of the interest they pay. On the contrary, if you borrow money from a lender. The most common is that you talk about annual interest, which is the interest you have to pay per year, but there is nothing that says it must be so.

Say you borrow SEK 10,000 from someone and you decide that the interest rate should be 10%. This means that you will pay SEK 1,000 in interest as it is one tenth of the loan amount. Should you repay the entire loan at once, it would therefore cost you 10,000 + 1,000 SEK to settle the entire debt.

When you borrow, however, it is common for the repayments to be split up on several occasions and it is then that it becomes a bit more advanced to figure out how much to pay. We take and continue with the example of a loan of SEK 10,000 with 10% in interest and say that you repay this loan on five occasions and that you pay interest each time. To make it easy, we also use straight amortization (always amortizing the same amount).

loan Total Interest Interest in kr Amortization Amount
10 000 kr 10% 1 000 2 000 3 000
8 000 10% 800 2 000 2 800
6 000 10% 600 2 000 2 600
4 000 10% 400 2 000 2 400
2 000 10% 200 2 000 2 200
0   3 000 10 000 13 000

In our example with the loan, it would therefore cost SEK 3,000 to borrow this amount. Then, of course, this was a very simple example to show how it works. If you take out a mortgage loan, for example, it may be repaid over 50 years and the borrower pays every three or every month. We are therefore talking about between 200 and 600 repayments on the loan, which would make the example much more difficult to print.

 

Don’t just check interest rates

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It’s not really that simple that you can just check the interest rate that the lender says they charge for the loan. This is because several other costs can also be incurred for a loan such as a management fee, a setup fee etc.

If the loan has no other costs, the interest rate they print will also be what it will cost you. But if there are other costs as well, something called effective interest rates is a good way for you to find out what the loan really costs. The usual interest rate that the lenders write up is called nominal interest rate and is only what they charge extra for the loan. Lenders want to make a profit when they lend money and it is only through interest that they are allowed to withdraw this profit. Planning fees or other fees may only be used to cover the actual costs they incur for them.

Effective interest rate

Effective interest rates are a good measure as the lenders here must take into account all costs associated with the loan. In other words, nominal interest rates, fees, etc., and then this is presented in a percentage figure on an annual basis. So if you have a private loan of SEK 100,000 and that has an effective interest rate of 8%, you have to pay SEK 8,000 for the loan itself in the first year (now we do not expect you to repay during the time to make it easy). The loan could have a nominal interest rate of 7%, which would mean that you have 1% in other costs.

Just keep in mind that effective interest rates are calculated on an annual basis, which is why strange results can be obtained for loans that do not have a maturity of one year but a shorter period of time. Therefore, you cannot directly compare a micro loan of 3 months with a private loan of 1 year when it comes to effective interest rates. Effective interest rates should only be used to compare similar loans.

Variable and fixed interest rates

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These are two simple but important concepts to understand when it comes to interest. Fixed interest rates mean that you and the other party decide that for a certain period of time a certain interest rate applies. This is then fixed during the period regardless of what happens. It is usually with fixed interest rates, for example, for mortgages where it is possible to fix the interest rate for 1 – 10 years with most lenders. It is normally only for mortgage loans that this is something that you should consider.

Variable interest rates are governed by the market interest rate or any index. This means that the interest rate can change with fairly short notice and can then both go up and down.

Advantages and disadvantages

The risk is greater with variable interest rates since it can go up but at the same time it is probably the cheapest too. Historically, variable interest rates have been cheaper. Then there may be times when it fits with fixed interest rates for everyone.

Another good rule of thumb might be that if you have good margins in the economy, it is better to have variable interest rates when you can save money. If you have smaller margins, it is not worth the risk that the interest rate goes up so much that you cannot afford your payments and then it is better to take the “safe” alternative in the form of fixed interest rates, although it probably costs a little more.

There is more

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Of course, there are more advanced things that concern interest, but this is something you don’t normally have to worry about directly why we haven’t looked into this in our simple review either. The idea was to make it as easy as possible to understand and then you just have to look at the basics.

It is enough for you who will borrow money to know what it will cost you not exactly why it will cost you X number of kronor.

 

 

Borrow with payment notes

Payment notes increase in economic life and make it difficult, if not impossible, to, for example, subscribe, sign a lease and borrow money. However, for the possibility of getting a quick loan, a payment note is not a synonym for rejection. You just have to be prepared to compensate the lender for the increased risk that the note symbolizes, by paying higher interest rates and / or fees.

At new E-Money, however, traditional thinking does not apply. Here it is entirely possible to borrow with a payment note and also not have to pay anything in interest or fees. At E-Money you can borrow up to USD 5000 free of charge if you ensure that the money is in the lender’s account within 14 days . For more in-depth information, see our presentation of E-Money.

A good quick loan if you can pay quickly

A good quick loan if you can pay quickly

The majority of lenders in quick loans apply the same price regardless of when repayments are made. E-Money instead works with a slightly different concept. Here, the person who pays back becomes more quickly rewarded with a lower total cost. The least expensive will be the fast loan if the loan amount is repaid in full within 14 days. In such a case, the loan becomes free of charge.

The arrangement is fairly straightforward. Each fast loan runs with 60 days repayment period (with possibility of extension). E-Money has divided this period into three parts, namely 0-14 days, 15-30 days and 31-60 days. If the payment is made within the first month, the borrower receives a discount. If payment is made during the second month during the term, no discount is received.

We can illustrate the arrangement with a concrete example. We say you want to borrow USD 4000 . The three alternatives will then be as follows.

1. You pay within 14 days and receive 100% discount (free loan)
2. You pay within 15-30 days and receive a discount of USD 560 (41.18%)
3. You pay during the second month on the loan period and pay full price (the loan cost becomes USD 1360).

One way to make both borrowers and lenders happy

One way to make both borrowers and lenders happy

Why has E-Money chosen this concept? Is there any other reason than simply being able to make customers more satisfied and thus gain a competitive advantage? There is another reason, and it is that faster repayment gives a faster turnover on the lenders’ capital.

E-Money is not a fast loan company in the real sense, but a broker of loans between private individuals. The money that the borrowers get paid is simply made up of deposits from private individuals. The more often the lenders’ money can come to work, the greater the return and the more capital E-Money (via the sister brand Savelend) can attract.

More about E-Money’s business

bank

E-Money is part of Savelend Sweden AB, which is one of the pioneers in loans between private individuals, or peer-to-peer with another designation. At the beginning of 2017, deposit and lending operations were streamlined in separate brands.

E-Money is the brand for the loan brokerage and it is on the pages of this brand that you who need to borrow submit your application. The private individuals who are responsible for the capital that E-Money raises instead have Savelend as the counterparty.

Mortgages – We explain mortgages and compare interest rates

The mortgage loan is by far the largest part of a mortgage loan. If you are buying a house or apartment that has received a good valuation, it can be so good that you get a mortgage that covers 85% of the total loan amount. It is a great advantage to get a mortgage loan that covers large parts of the loan as this is a loan that has collateral

Mortgages – Loans with collateral

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The fact that the mortgage is a secured loan means that you, as a borrower, offer the lender something that they can demand as payment if you are unable to repay the loan you are going to. When you buy a house, apartment or other accommodation, it is almost always the accommodation that is the security of the loan.

 

Since the bank can feel confident that they will always get back the money they have lent out, they can also set a lower interest rate on a loan with collateral. Therefore, you will be happy the greater part of the mortgage loan, which is a mortgage loan when it is clearly cheaper. The disadvantage is, as I said, that they can demand collateral as payment for the loan. Which in principle can mean that you become homeless if the repayments are not handled properly.

How a mortgage loan is divided

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A mortgage loan can be divided into several different parts that have different bonding times. This is something that you must consider when taking out your mortgage. If you think it is advantageous to have a certain type of, you should invest in that particular type. For example, the loan may be split up so that two-thirds have their own bonding time compared to the last third. In general, it can be said that historically it has been cheaper with variable interest rates. However, you must then have an economy that can cope with changes in the business cycle in a good way. If you do not have such a strong economy, the security of a bond loan can be good even if the total cost is higher.

Amortization time on a mortgage loan

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A mortgage loan is a loan you can have for a very long time if you wish. The less the cost per month, the longer you have the loan. A mortgage loan can often be up to 50 years. Here, of course, it plays into how old the applicant is. Then if you suddenly get better financially, you can of course when you want to repay your mortgage. However, if you have tied up the loan for a number of years you will have to pay something called interest rate compensation. It is only if you have a floating loan that you can repay at no extra cost.