Interest rates can have a big effect on the overall cost of a personal loan.
Interest rates will differ from lender to lender. The actual comparison rate offered on a loan will vary depending on the loan period, the amount of borrowing, any fees and charges from the lender, and sometimes on the repayment frequency. The amount of interest in monetary terms is calculated over the full loan period, but applied to the overall cost at the beginning of the loan. This allows for the fixing of repayment amounts at a consistent level.
How the different variables effect interest rates can be seen by using a loan calculator, available on many lender’s websites. These will also provide a guide to the amount of interest that will be applied to a loan. Lenders should also be able to provide information on included fees and charges on request.
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