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/-
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.
A finance charge is interest charged by a lender on the unpaid balance of a loan.
If a company has adopted 'Table A', it can charge interest on calls-in-arrears at the rate of
continuation of question that would be the maximum interest rate that a finance co can charge in the year 2011.
To calculate the finance charge, multiply the credit card balance by the monthly interest rate. For a balance of $3,299.19 at a monthly rate of 1.2% (0.012), the finance charge is: Finance Charge = $3,299.19 × 0.012 = $39.59. Therefore, the finance charge for that month is approximately $39.59.
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.
A finance charge is interest charged by a lender on the unpaid balance of a loan.
A finance charge is interest charged by a lender on the unpaid balance of a loan.
If a company has adopted 'Table A', it can charge interest on calls-in-arrears at the rate of
Yes.
continuation of question that would be the maximum interest rate that a finance co can charge in the year 2011.
To calculate the finance charge, multiply the credit card balance by the monthly interest rate. For a balance of $3,299.19 at a monthly rate of 1.2% (0.012), the finance charge is: Finance Charge = $3,299.19 × 0.012 = $39.59. Therefore, the finance charge for that month is approximately $39.59.
multi the unpaid balance by the monthly interest rate
yes it can
The finance charge on an auto loan is calculated based on the interest rate and the outstanding principal balance of the loan. It is typically determined using the formula: Finance Charge = Principal Balance × Interest Rate × Time. The interest rate can be expressed as an annual percentage rate (APR), which is then divided by the number of periods (months) in a year to find the monthly rate. Additional fees and charges may also be included in the total finance charge.
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.
A finance charge refers to the total cost of borrowing, including interest and any associated fees, expressed as a dollar amount. In contrast, the annual percentage rate (APR) is a percentage that represents the yearly cost of borrowing, taking into account the finance charge along with any additional fees, normalized over a year. While the finance charge gives a clear dollar figure, the APR provides a standardized way to compare different loan offers by expressing costs as a percentage of the loan amount over a year.