Why is this happening? If the annual charge doesn't mirror the actual situation of overpayment, then what should the borrower pay attention to? Sure, on the effective interest price on the loan? If you see that the financial institution offers 20% per annum, does this mean that you will overpay exactly 20% for a loan? Not at all, and that is the error of many borrowers. 1. Firstly, this fee can be charged on the residual debt in proportion to the variety of months in a year. 2. Secondly, if a loan is taken, say, for 3 years, then this fee of 20% will probably be utilized separately to every year of debt repayment (if early repayment was not utilized).

3. And thirdly, meilleur 5 casino it does not reflect the real essence of the overpayment, but is only a financial instrument for calculating debt. The annual curiosity doesn't take into account the varied commissions and fees that the financial institution additionally attributes to the loan. The effective interest fee on a loan is a monetary device for calculating the actual overpayment. Sometimes it is known as TFR - the complete value of the loan. If the annual charge doesn't mirror the true situation of overpayment, then what ought to the borrower listen to?

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