Instant Loans – The payback plan

Instant Loans – The payback plan

The sum received by the beneficiary must therefore be returned to the credit institution within a specific time period established at the time of signing the contract, through which the subject undertakes to repay the sum received plus the interest provided for by the emergency loans.

The regular monthly payment of installments in constant figures , payable by postal order or withholding directly from the current account. The installment indicates each of the parts into which the payment of the loaned sum is divided, and includes a principal amount , i.e. the amount of the loan requested, and an interest portion , i.e. the additional percentage that is charged on the financed amount.

The regular intervals that characterize these installments correspond to the so – called amortization plan, or more commonly repayment plan, and this document is attached to the personal loan contract which reports, at the expiry of each installment, the residual debt of the loan. Some financial companies allow you to skip some installments or change the amount of the same, additional options that vary from bank to bank depending on the type of offer provided.

The indices of a personal loan: TAN and APR

The costs applied to the amortization plan are expressed by certain indices, which are the TAN and the APR, which must be seriously evaluated by the aspiring beneficiary before signing the contract to see if the loan offer is really convenient. In detail, these indices have this meaning:

TAN (Nominal Annual Rate), is the annual interest rate applied to the personal loan, net of commissions and accessory charges read more onĀ mercurynews