PERSONAL LOAN CALCULATIONS - MONTHLY CAPITALISATION

This is very interesting.  Many of you do not have any single idea about business loan but of course yet know how to access personal loans.  Why??

It's very reliable and simple..All you need is 

Your employment confirmation and 3 recent  payslips. Some important things we should care about most before getting the loan are ignored totally. WE JUST LOOK AT THE AMOUNT APPROVED AND SO EAGER TO SIGN THE TERMS OF CONTRACT before the money hits your personal Account. 

Here are some things you must always check with the loans officers before you get the loans.

1. Interest rate.

2. Repayment terms (in years or months)

3. Check if it's scheduled or unscheduled  repayment type.

4. How much is the Capitalisation per month?

These are very important as it will give you an exact figure of how much your would actually repay for the loan. It's important that you discuss with your loan officers before your sign your hard earn money away.

Personal Loan Calculator 

Let's say you borrowed K10,000.00 at 27% fixed per annum interest.(BSP charges on fixed  interest annum at 27%)

When loan breakup is scheduled,  it's calculated this.

From K10,000  the interest will be calculated every month on the aggregate loan. In any loan, principle is paid differently from interest. Lets say, if you wish to pay the K10 000 in 2 years( 24 months) at 27% interest per annum. For per month, the interest is calculated at 1.125 % (27/24). If you wish to pay K192 (K10000/52 fortnights) per month then let's calculate :

F1. Fortnight 1

F2. Fortnight 2

For First Month 

F1. K 10000 - K 192 = K 9808

F2. K 9808 - K 192 = K 9616

Now, since our monthly interest is 1.13% (approx) let's calculate 

K9616 × 0.0113 = K108. 66 

The K 108.66 is Your monthly interest,  hence add it to remaining K 9616 to calculate for the next repayment month.

K9616 + K108.66 = K9724

For Second Month 

F 1. K9724 - K192 = K9532

F 2. K 9532 - K192 = xxxxxx

And it continues like that till you reach the last 24th month.

Hope you now know how your personal loan is calculated. 

To know more about both personal and business loans, attend all my sme and financial literacy trainings.  Be financially literate to live a Financially Fit Life. 

We have a training in Port Moresby From 01st of November to 4th 2021. Please send your name, phone number and email to 74817807 for registration. 

NB

Photo: Attached photo belongs to a complainant from Pogera on how his loan has got Capitalisation added each month. I hope this clarification reaches you.