How is consumer credit calculated

If you want to know in advance how much the loan will cost and what the overpayment is, you can use several methods for calculating a consumer loan:

use the online calculator on the bank's website;
fill out an online application for a preliminary decision of the bank with a description of the loan conditions;
pay a personal visit to the bank.

Specialized portals and Internet services

Many thematic sites and web portals offer to use an online loan calculator and find out how much you will have to pay when you receive a loan. There are different approaches to calculating a consumer loan: according to the size of income, to the minimum required payment, to the amount of security, to the cost of a thing or service purchased with a loan, and to the amount of the loan. The calculator will show how long you can take the money, how much you have to pay on a monthly basis, what interest will be accrued on the amount of the loan, make a repayment schedule.

Such Internet services often offer to fill out a questionnaire to provide data on banks that can issue a loan. Sometimes fraudsters may request to send a paid SMS message or call a paid customer support line, or fill your email inbox with dozens of spam emails.

Online services can only be used as an example; accurate and current information cannot be found there. They do not take into account the individual specifics of certain banks and their requirements for customers. You can receive a message many times about the approval of the application by a specific bank, but having come personally to the bank with documents, it turns out that the bank employees see your data for the first time, and you do not fit in any parameters and cannot count on the minimum interest rate indicated in advertising. Be carefull!

The online calculator will not show the size of hidden fees, additional bank fees, associated costs for obtaining a consumer loan.

Loan calculation on the official website of the bank

Calculation of a consumer loan is best done on the official website of the selected bank. There you can fill out an online loan application. Only Internet and computer are required. And in this case, the calculation data may not be accurate enough, and when you, having received initial approval, go to the bank, it may turn out that the lending conditions are radically different from the original ones.

This happens for various reasons, for example, you did not confirm the data specified in the application or the official salary in the income statement is less than what you actually receive. There may be another reason: the questions of the application are not sufficiently developed and do not take into account all the subtleties and criteria that the bank uses to evaluate potential borrowers.

Visit to the bank

The best option for calculating a consumer loan is a personal visit to a bank branch. The main thing is not to be afraid of the people who represent him. The consultant, in accordance with current proposals, internal credit policy and applicable tariffs, will calculate any loan parameters after filling out the application and providing all documents.

You can get acquainted with the size of the interest rate and the total overpayment only after the approval of the application. All calculations will be accurate and similar to the conditions under which the bank will sign a loan agreement.

To get a response from the bank, you will have to wait from several hours to several days, but there will be no unpleasant surprises in the loan agreement. You can refuse to loan before signing the contract, if you are not satisfied with the proposed conditions. If you have signed and decided to terminate the contract, you will need the help of not only a lawyer, but also a judge.

You can calculate the overpayment on a consumer loan yourself, but it’s hard to guess all the tricks of the bank and the additional costs that are mentioned in small print only in the loan agreement. However, according to the current legislation, the creditor bank is obliged to notify the borrower of the full cost of the loan before issuing a loan, but he tries to do this at the very last moment when it seems impossible to refuse money that is already practically in hand.