Calculating a loan is easy thanks to a large number of providers. It mainly helps as a guide before requesting a quote.
What amount can be borrowed?
You can borrow money in different ways. Due to the large offer, taking out a loan is easy. Strong competition means that various aspects of the loan can differ. The most important parts of a loan are the amount to be borrowed, the interest and the payment period. But before a loan can be taken out, it must be clear what the maximum amount is that you can borrow. After all, a financial institution wants to make a realistic estimate as to whether the loan is actually repaid with interest.
For the person taking out a loan it is important to get a good idea of the extra monthly costs that a loan entails. A number of factors will be taken into account in the calculation.
Calculate online loan
Almost every loan provider offers an online tool with which a quick calculation can be made of the amount to be borrowed. It is important to know that this calculation is always an indication of the loan. When the actual loan application is made, the provider will make a detailed calculation that will lead to a final offer. An online calculation tool will generally consist of two fields: the loan amount and the desired term. A maximum loan amount is calculated with the interest that the provider uses. When the calculation is done directly at a financial institution, a number of additional details will usually be requested.
These are: do you live together, do you have children and do you live in your own house? From these answers follow a number of follow-up questions about the net income (where applicable also from the partner) and the amount of the mortgage. With this the provider can already give a first maximum of the loan amount. Many calculation tools then provide the option to adjust the loan amount. With this amount, the monthly charges and duration can be examined last. Just like a longer term, a lower monthly amount will lead to a higher loan. By varying with these amounts, a picture can be formed of the final loan.
Calculate different types of loans
If you look at the website of a financial institution, you will quickly come across the calculation tool. In general, a standard loan and the maximum loan amount are calculated here. In addition, a number of websites can be found that offer a more extensive range of loan calculators. These calculators can calculate various aspects of the loan: think of the amount of interest, the residual debt or the increase in the debt.
The different types of loans can also be calculated separately. A personal loan is structured differently than a revolving credit and will often result in a different maximum loan amount. Buying consumer goods on installment is very simple and attractive. But is it a favorable payment arrangement? With a special calculator a simple answer can be given to the question whether an installment purchase is not much more expensive than the interest received on a savings account.