Understanding Loan Repayment Tables

2007-03-22 16:46:53

( Financial )



You may not know what loan repayment tables are unless you have filed for a loan such as salary, personal, car or housing loan. In standard loan repayment tables, you will normally find the amount of loan granted, the interest rate per month or per annum, the terms of payment, the maturity date and the most important thing is the monthly amortization for the said loan.

The monthly amortization of a certain loan is dependent on the loan duration on which you can choose from a certain number of months for the loan to mature such as 6, 12, 18 or 24 months. The amortization for the repayment loans will then be determined through a so-called repayment calculator wherein the interest rate and loan maturity period will be the main factors in the computation. This means that loan repayment tables for a specific amount of loan would vary depending on its maturity period. Hence, monthly amortization for repayment loans with longer maturity period will seem to be lesser than those with shorter maturity period.

However, you must make a comparative analysis on the different loan repayment tables depending on your capacity to pay. If your resources will allow you to pay the repayment loans within 12 months, do not opt for the 24-month period. For the longer the period, the bigger the amount you are paying for the interest though it might appear lesser in monthly amortization.

Once you inquire for your repayment loans balance after a period, you can see the months you have paid and the outstanding balance for your loan. It is advisable that you get an updated repayment print-out after from time to time for you to be aware of your loan balance and to check whether your payment was posted or not. This way, future problems of non-posting of payments will be prevented.


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