January 16, 2018

Loan calculator and easily securing the best loans

In order to know how much a loan is going to cost you, a loan calculator is the best way to find out. Most loan providers in South Africa have one on their website for home, personal, business and vehicle loans. It is important that borrowers utilise these useful tools to make informed decisions before approaching any financial institution.

Depending on what you need the loan for; you should use the appropriate type of loan calculator. This is because the home loan amount you qualify for would be different to a personal loan amount. The terms and other variables will also differ. A loan calculator can provide you information on how much you qualify to take out based on several factors, such as your credit history and monthly income.  In addition, the repayment periods and interest rates will be different. Most small personal loans have a repayment period of not more than 2 years, with larger loans going up to 5 years. But home loans can have a repayment period of up to 20 years.

The loan calculators used by South Africans can differ slightly but generally individuals will be looking out for the following:

  • Loan amount you qualify for based on your monthly income
  • The loan amount that will be due after it has been approved
  • The interest rate throughout the repayment period
  • Repayment period, usually given in the number of months it will take to repay the loan and interest

With this information, the loan calculator is able to give you the expected monthly installments. Most calculators allow you to adjust the repayment period, thus giving different amounts for repayment. This means, if you choose a shorter repayment period, you may not be able to afford the monthly installment, but by increasing the repayment period, the monthly installments are smaller.

If you are empowered with this information, you will be able to indicate to the lender what repayment period best suits you. You will also be able to plan your finances going forward with a solid number in your head for the amounts to be repaid.

Most reputed loan providers have your best interests at heart, and want to give you the best conditions of repayment possible. For efficient and friendly assistance with loan calculators and specifically applying for suitable credit in South Africa, our team at Approved have you well covered. We can help you source and apply for the most suitable finance alternatives based on your individual needs.




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