We often need to resort to loans to cover last minute expenses. However, sometimes important details of this transaction go unnoticed, such as the interest rate.
Many people are relieved to get a loan to cover this emergency hole that takes their sleep. However, the lack of detailed research on lower interest rate financial institutions may give you an even bigger headache in the future.
Knowing exactly how much you are lending and how much you will pay back on interest is essential for this loan to help you have a financial break and resolve difficult and emergency situations.
Therefore, we have prepared these tips on how to know if the loan interest rate is good and how to get away from financial hassles when borrowing:
How to calculate the interest on my loan?
Knowing the amount of interest you will pay on a loan is very important to avoid financial loss. Just search among the financial institutions that will notice the discrepancy between one interest rate in one bank and another.
Let’s take an example: You need USD 1,000 to borrow. One bank offers you the loan at a rate of 2.0% per month and another at 3.0% per month. The total amount to be paid in both situations will have a difference of more than USD 150,00 in interest only if this loan is paid in 24 installments.
Note that in this example the difference in interest rates is only 1%. Therefore, the best way out is to search for institutions that offer lower interest rates. It’s worth a little time researching and comparing this interest than losing money, isn’t it?
Total Effective Cost
In addition to interest rates, other costs may be embedded in this loan transaction. Therefore, in addition to adding the amount of installments and checking the amount to be paid, it is important to pay attention to other charges that may be charged.
It is the obligation of financial institutions to advise their clients on Total Effective Cost (CET), which considers all other fees charged by the bank. Comparing the total value of the transaction, it is possible to make large differences in the values of a loan between two different financial institutions.
Where can I track interest rates?
On the website you can follow the average rates practiced by each financial institution. With this you can compare which institutions provide lower or higher interest rates. However, these figures are only an average and may vary by bank, region, and other situations.
Therefore, it is correct to contact us and do a detailed research on these values. There are institutions that lend fully online and offer very competitive rates. That is, you do not even have to leave home and still reduces some costs with documents, transportation, among others.
Where to get cheaper interest loan?
In Brazil, there are several financial institutions with the most varied interest rates and Total Effective Cost. So nothing better than searching to find a bank that can help you, provide all the support you need, but at a low and affordable cost.
If you are looking for a loan and have not yet found affordable terms and conditions. Contact us and see the advantages of being our customer.