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finance charge - This is the one time fees that the bank may charge for processing your loan
Interest rate - This is the rate at which you must pay the bank interest for availing the loan during the loan tenure.
Ex: Assuming you take a Rs. 1 lakh loan for 1 year at 10% fixed rate of interest and a 0.5% processing fee/finance charges
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Monthly payment = 9166.67/- (Out of this Rs. 8333.33 would be principal repayment & Rs. 833.33 would be interest)
Finance charges = Rs. 500/-
What else can I help you with?
What is the difference between a service charge and a finance charge?
A service charge is typically a charge for a specific action that a company performs on an account or an order. A finance charge is an amount of interest that is charged on an amount of principal owed by a customer.
What is a finance charge?
A finance charge is interest charged by a lender on the unpaid balance of a loan.
Why do finance companies charge such high rates of interest?
If a company has adopted 'Table A', it can charge interest on calls-in-arrears at the rate of
What is the federally regulated maximum interest rate that a finance company can charge on a loan in the year 2011?
continuation of question that would be the maximum interest rate that a finance co can charge in the year 2011.
How do you calculate finance charge?
multi the unpaid balance by the monthly interest rate
What is the difference between a service charge and a finance charge?
A service charge is typically a charge for a specific action that a company performs on an account or an order. A finance charge is an amount of interest that is charged on an amount of principal owed by a customer.
What is a finance charge?
A finance charge is interest charged by a lender on the unpaid balance of a loan.
What is finance charge?
A finance charge is interest charged by a lender on the unpaid balance of a loan.
Why do finance companies charge such high rates of interest?
If a company has adopted 'Table A', it can charge interest on calls-in-arrears at the rate of
Can a company that is not a finance company charge interest and finance charges to someone it has lent money?
Yes.
What is the federally regulated maximum interest rate that a finance company can charge on a loan in the year 2011?
continuation of question that would be the maximum interest rate that a finance co can charge in the year 2011.
How do you calculate finance charge?
multi the unpaid balance by the monthly interest rate
Can a car finance company charge interest once the principal is paid?
yes it can
How does a company calculate the finance charge on a mobile trailer?
i need to know how a calculation of finance charge was figured out. it is a original loan at 18,084 for 12 yrs at 5.75% interest.
What are the interest costs and other fees for using a credit card called?
finance charge
The amount of interest a store charges a customer for buying on the installment plan?
Finance charge
How much interest is legal to charge for buying a vacuum?
If you buy it outright, there is no interest charged. if you finance it, laws on this vary by jurisdiction.
