If you want to borrow money, you should familiarize yourself with the different loan options offered by the banks. It is different from person to person, which loan is the best option. This depends, among other things, on savings and income, which is calculated in relation to forward benefit.
When looking for a bank in connection with the desire for a loan, the bank adviser will first and foremost assess whether one is suitable as a borrower. If you have neither a savings nor an acceptable amount of disposable income every month, it will be difficult to withdraw on your loan, which is why you are not generally accepted as a borrower.
Furthermore, there are different requirements for each of the different loans in relation to the borrower. The various loans each offer their own advantages and disadvantages, where one should research in advance – before meeting with the bank – which loan is the most optimal for one’s own situation. In addition, the bank adviser will advise against the desired loan, and further if the bank adviser thinks another loan would be better for a given situation.
What is a serial loan?
What a serial loan is about is a bit in the name. “Serial loans” is a series of payments, where each term pays an amount of. What is special for a serial loan is that the term benefit is smaller and smaller for each term. The actual deduction in the loan is the same every term, and this will generally not change unless you want it yourself – and can find a solution jointly with the bank.
The deduction is, however, basically the same from payment to payment. The reason why the total service becomes smaller, term for term, is due to interest payment. In the case of a series loan, the interest rate will be determined on the basis of the residual debt, which will be reduced from term to term, which means that the total forward benefit will be reduced.
Serial loan formula
In order to gain an understanding of what a serial loan is about, a schedule is drawn up, in which the rules for serial loans come into play. In the example, NOK 100,000 is borrowed with an interest rate of 8%. The deduction is the same term for the term, where in the example below is set to 25,000 kr.
|Terminations||Outstanding debt||interest||repayments||Forward Performance|
|1||100.000 kr.||8.000 kr.||25.000 kr.||33,000 kr.|
|2||75,000 kr.||6.000 kr.||25.000 kr.||ISK 31,000|
|3||50.000 kr.||4.000 kr.||25.000 kr.||29,000 kr.|
|4||25.000 kr.||2.000 kr.||25.000 kr.||27.000 kr.|
|Total||20.000 kr.||100.000 kr.||120.000 kr.|
The remaining debt is DKK 100,000 at the first term, precisely the amount borrowed. The interest rate is 8% of the remaining debt, which in the first term is calculated at DKK 8,000. The repayment is fixed from the beginning to the same amount at each term, precisely the DKK 25,000. ISK + 25,000 = ISK 33,000
The residual debt at the first term is calculated by: residual debt – repayment = DKK 100,000 – DKK 25,000 = DKK 75,000 This amount is stated as residual debt at the start of the second semester. The same procedure is used for calculating each coming term. The deduction is set at the same amount, but as the residual debt itself becomes smaller, the interest rate is reduced – and hence the total forward benefit per unit is reduced. termination.
Advantages of serial loan
There are many benefits to a serial loan. As can be seen in the above formula, the overall performance to be paid by less and less gives more and more freedom. It is nice to be able to look forward to the next payment being smaller than the previous one. However, one does not doubt the actual deduction on the loan, as this, as demonstrated in the above formula, remains the same. What the fixed repayment is to be agreed upon, one agrees jointly with his bank before the loan is raised.
When you get more money between your hands as each semester, you can with advantage talk to the bank to withdraw more. In this way one becomes debt free faster.
Disadvantages of serial loan
The residual debt is logically the largest at the start of the loan, which is why one must initially pay a higher amount in relation to the total forward benefit than later. As mentioned in the above section, this can be an advantage in relation to the fact that the residual debt – and hence the interest charges – will decrease with time.
However, this can also be a disadvantage that, at the start of a loan, you must have a large amount of disposable money, where all the money must go to the loan.
Some borrowers will benefit from the fact that the smaller amounts are at the start of the loan period, when the large amounts only occur after a certain period. This can be the case, for example, if you are a student, as you do not have a large amount of available money during your studies at SU, but will be able to pay a much higher amount per student. semester, when graduating and having a full-time job. In such a situation, a serial loan will not be the ideal loan.
Prior to a loan, many considerations exist. It is not only one who can decide which loan to take. The bank has the last word in relation to loans, as they predict what can pay off and what can not, why they can easily reject an applicant for a particular loan.
When you borrow money, it is a long-term expense, which is why you should not only think about contemporary income, expenses and needs. If you have any plans to have children, this should also be considered in the possibilities for loans. A child leads to extra costs, so this can change the basis for how much you can deduct for each semester.
The different loan options can be a jungle to find around, but it is important that you try to find out which loan (s) will suit your situation. After this, you are informed about different loans, why you can more easily talk to the bank about the possibility of loans – and possibly familiarize yourself with the bank adviser’s proposal for another loan.