Calculation of interests of a payday loan

The economic situation in Spain is improving, but the bank still does not trust a total financial recovery. It is not an easy task to grant us a loan and the list of requirements is endless.

A solution to get money quickly and safely is payday loan through http://greendayonline.com/. This product is much more accessible than traditional bank loans, although it is necessary to know the differences to calculate the interest rate of a microloan versus a bank loan.

Microloans are a type of personal loan that is characterized because they are easy to get, even by phone or from your computer, and do not require as many conditions as banks demand. It is only mandatory to be of legal age and not appear on any delinquency list.

The amount we can request will cover that unforeseen expense or it will be enough to give us that “whim”. It will be a good way to save by not having to ask for credits for a longer term or have a money that we have “fixed term” and that supposes to pay a penalty.

The interests or commissions of a microloan will be detailed once we complete the petition request as well as the time of return, as they will depend on it.

Why is it more difficult to calculate the interest on a bank loan?

The interests of a microloan focus mainly on the management and time of repayment. However, those of a traditional credit depends on the type of credit we ask for and for what. Example: for a house, consumption, buy a car, etc. Depending on the purpose of the loan, you will have interest and repayment terms.

If we focus on personal loans the interest rate usually varies between 6% and 14%, in addition, we must add an opening fee.

The bank will ask us, in order to grant us a loan, a series of connections such as having an account in which we will direct our payroll and household receipts, also usually request the purchase of insurance. If we do not meet these requirements, the interest that will apply will be higher.

In bank loans, we must also take into account the APR, “Annual Equivalent Rate” that will give us an approximate idea of the annual interest we will pay for that financial product.

Banks usually charge a penalty when we decide to repay a loan early or when we request an extension or deferral for their return. This does not happen if we apply the same approach when it comes to microcredits in the case of opening but in the postponement.

As you can see, calculating the interest in microloans and traditional loans is different since they are two totally different products since they are indicated for different situations.

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