We calculated that under the specified conditions, the benefit from differentiated payments is 46,106 ₽. At the same time, the credit burden at the end of the term is significantly reduced and is practically reduced to payments of the principal debt. But at the beginning of the term, you have to pay almost 6,000 ₽ more. This difference can affect:
decision on a loan application. If payments on all loans (including the new one) are more than 50% of income, the bank cannot approve such an application;
lending conditions. High debt load of the borrower is a big risk for the bank. One of the ways to compensate for the risks is to increase the interest rate.
If the terms of the loans are the same and the only difference is the saudi arabia mobile database type of payment, the differentiated scheme is much more advantageous. But in reality, it is difficult to get the same rate with such a difference in the payment amount at the beginning of the term.
Differentiated payments are practically not used in modern banks, but you can still find loans with payments on such terms.
In this case, the overpayment on the loan can be calculated using the formula:
This is a very simple formula that doesn't even require you to know the interest rate. It can be made even simpler:
OVERPAYMENT AMOUNT = TOTAL COST OF LOAN – LOAN AMOUNT
Where:
TOTAL COST OF LOAN = PAYMENT AMOUNT × NUMBER OF MONTHS
In reality, this method almost never allows you to accurately calculate how much you are overpaying. The fact is that the last payment is often different from all the others, because it is extremely rare to be able to divide the entire amount into equal rational numbers.
If you want to know the most accurate amount, the full cost of the loan will have to be calculated using a more complex formula:
TOTAL COST OF LOAN = PAYMENT AMOUNT × (NUMBER OF MONTHS – 1) + LAST PAYMENT AMOUNT
To find out how much you will pay in the last month, you need to look at the payment schedule. It is attached to the loan agreement and is also written in the detailed information about the products in the mobile application and online banking.
The formula can become even more complicated if the loan amount includes insurance. To accurately calculate how much the overpayment on the loan will be, you need to know at least one of two values:
how much did the insurance cost;
How much did you receive in cash?
If you know the amount in cash, just change the wording: instead of "loan amount" it will be "cash amount". And if you know the cost of insurance, just add it to the amount of overpayments.
We calculate overpayments for differentiated payments
If the credit product uses a differentiated scheme, it is not easy to calculate overpayments on your own, since you will have to calculate separately for each month. It is worth doing this only if you want to practice with the problems.