Percentages

Why it is necessary to calculate interest on a loan? First, you need to understand that interest – is the income of the bank, which is paid by the client/borrower for the use of credit. Interest can be simple and compound, one-time and multiple.

To calculate percentages in monetary terms, it is easiest to use an online calculator. Here, nuances such as average monthly income, main and additional expenses, type of credit, and much more are taken into account.

Based on preliminary calculations, the bank decides on granting a loan. If the client is insolvent, i.e. – average monthly expenses exceed income for the same period, there is a high probability that it will be difficult for them to make regular payments according to the interest rate. This can be a reason for refusing to grant a loan.