Nowadays, the lending service is very popular. And this is not surprising. In the modern world there are a lot of opportunities, progress does not stand still. A huge number of innovations and technologies appear. People have growing needs every day, but the opportunities for their implementation are not increasing at the same rate. That is why people are increasingly resorting to credit services. What is its meaning?
The essence of lending
Why is such a service needed and what is its benefit? Lending is very popular in the modern world. Nowadays, up to 90% of all apartments are purchased using this service. Yes, people prefer not to immediately give all the money for housing, since most simply do not have such an amount, but to extend payments for several years.
In other words, young families no longer need to save for an apartment for years, huddling at that time with their parents or other relatives. They settle in their housing and pay for it. Due to the fact that there is a loan service, everything is in the black. The bank receives interest on the loan, the borrower - his own apartment. The service also significantly stimulates the development of the economic and construction industries.
In addition to apartments, people buy cars, appliances, furniture and other things on credit. In modern Russia, such a service is very developed. However, this should not be abused. Unfortunately, some people do not want to honestly and voluntarily pay a loan. In this case, the bank suffers financial losses: it not only does not receive interest for using the loan, but also spends money in search of a “negligent” borrower. He is forced to block in his account the amount that the debtor owes him. This means that this money cannot participate in the further circulation, and, accordingly, cannot bring income. The bank absolutely does not need such problems. That is why borrowers are very carefully selected, and they do not want to cooperate with non-payers.
Bank Benefit
You need a lending service in order to purchase an item for which you cannot or do not want to pay the full amount at once. And what is the benefit of the bank? Why does he give you money? Everything is very simple. The bank makes money in this way. He charges you interest on the use of money - and often this amount is rather big. A logical question arises as to where in this case the money comes from the bank?
Everything here is also simple. Some people have a certain amount of money, and they do not plan to spend it in the near future. But if she simply lies in their closet at home, she will begin to lose her real value due to inflation. To prevent this from happening, people are making a contribution. Thus, they not only maintain the real value of money, but also increase it.
Thus, the bank takes money from depositors and pays them interest. As a rule, they are small, slightly higher than the inflation rate. Then the bank gives the same money, but, as a rule, the interest rate is already twice as high. That is, he earns on the difference.
With this model, everyone remains in the black. Investors receive interest from their savings. Borrowers receive money exactly when they need it. Well, the bank makes a profit.
We figured out the benefits. Now let's look at how the bank accrues interest on the use of credit. How is the final monthly payment amount obtained?
The algorithm for calculating interest on the use of a bank loan
To get started, let's figure out what the amount that you ultimately have to pay the bank is made up of. It consists of several parts. Firstly, this is the main duty. That is, you must return to the bank in full the amount that you borrowed from it. With this, everything is clear. Next is the amount of interest for using a loan. In order to calculate it, you need to know the interest rate. For calculation, the annual interest rate is used. Currently, it is calculated automatically either by a bank program or by any program on the Internet that calculates interest on a loan.
Let's say the loan term is one year. Then the amount of the overpayment is less than the amount that is obtained as a result of multiplying the interest rate by the size of the main debt and divided by 100%. Why is that? Here you need to use a complex method of calculating interest.
How it works? The amount of the main debt decreases every month. If in the first month the percentage was taken from the entire amount of the debt, then in the second month - from the remaining debt. Thanks to the first payment, the main debt decreased. Accordingly, each time the amount of interest will decrease.
What else do you need to know?
The algorithm described above works at a constant interest rate. But it can change. In this case, we are talking about a loan with a differentiated interest rate. What does it mean?
This means that the interest rate varies depending on the loan term. That is, a period of time it has one meaning, the next period - another, the third period - the third value. Let's take an example. From the 1st to the 6th month, the rate is 40% per annum, from the 7th to the 24th month - 30% per annum, and from the 25th month to the 36th - 20% per annum. What do we see? The interest rate decreases with each period.
A loan with a differentiated or constant interest rate - which one to choose?
What to rely on when choosing a loan program:
- interest rate - the less the better;
- credit term;
- Required documents;
- the period for which you want to repay the loan;
- full cost of the loan.
One more important concept to keep in mind is the effective interest rate. It includes all payments for loan servicing that were known at the time of the contract.
When choosing a loan, it is very important to rely on the period for which you want to close the debt. With a differential loan, the main interest is taken in the first months. And if you want to close the debt for a month, you will have to pay more than with a loan with a constant rate, because the amount of interest in this case will be less. Make a preliminary calculation of interest on the loan and compare the amounts received. Based on this, make a decision!
Commercial loan
Not only individuals need a loan. Often, one company provides a sum of money or goods to another. This type of loan is called commercial.
What is it for? This type of loan contributes to continuous turnover, increase the number of products sold. That is, the supplier sells its goods and receives plus interest on the total amount of profit, and the buyer receives a deferred or installment payment, as well as profit from the sale.
Commercial loan interest
At the bank, people receive a loan at certain interest rates. And what about organizations? Do organizations pay interest on using a commercial loan? Let's figure it out.
Organizations draw up a contract in which they indicate the dates and amounts of payment, and also indicate the amount of interest for the provision of deferral / installment plan. It is very important to understand that the amount of interest in this case will be less than if the buyer wanted to take a loan for the same amount at the bank.
In addition, the contract must provide for what sanctions will follow for late or incomplete payment of the payment. It is very important.
How is commercial credit reflected in the accounts?
How are interest charged for using a loan? The postings that are used are important. This is an entry in a special log and database on the state of objects.
Let us examine these questions with an example. Shipped to the buyer goods worth 118 thousand rubles, including VAT. Interest rate - 15% per annum. Payment is made in three equal installments. The purchase value of the goods is 86.6 thousand rubles, including VAT.
Business Log
the name of the operation | Amount, thousand rubles | Dt | Ct |
At the time of shipment | |||
Revenue from the sale of goods | 118 | 62 | 90.1 |
Accrued VAT | 18 | 90.3 | 68 |
Written off the purchase price (no treatment costs are taken into account) | 70 | 90.2 | 41 |
Payment of VAT to the budget | 18 | 68 | 51 |
At the end of the month | |||
Accrued interest for using a loan | 1,475 | 62 | 91.1 |
Accrued VAT with% | 0,225 | 91.2 | 68 |
Paid VAT to the budget | 0,225 | 68 | 51 |
After the end of the quarter, the 99th account determines the financial result of this operation and summarizes.
Reviews
Despite all the apparent merits of lending services, it is better to think again before borrowing money. You must be completely sure that you can pay the amount on time. Of course, situations are different, and sometimes without a loan the problem can not be solved. And if users can still figure out the amount of interest, then problems often arise with late fees. Customers simply cannot understand why they are depositing money, but the debt remains the same. Take this moment into account!
Sometimes the delay penalty reaches noticeable size, and the bank may draw up a lawsuit. However, in some cases, customers were able to reduce the fine or even annul it. But for the court to take your side, you need to provide convincing evidence (poor health, difficult economic situation). But even in this case, a fine will be forgiven you, but you will still pay the loan body and interest.