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Interest on loans: what are they? We explain them step by step

Surely in advertisements in the press or when passing in front of a bank office you have seen posters in which you can read acronyms such as TAE, TIN or phrases that say no opening rate. Do you know what they mean? They are the interests of the loans they offer. The difference of the loans with other products that you buy is that the price is not paid at the moment of acquiring them, that is to say in the signature, but that it is done month by month in the repayment quotas. A simple example: If you ask for 1,000 dollars and you end up returning 1,200 dollars, those 200 are the interest, which the financial entity earns for lending you the money, the price of the product, after all.

 

The interests of the loans that you can find

The interests of the loans that you can find

Since many acronyms are used in the interests of loans, here you can find what each of them means so that you are clear about what you are hiring before signing.

The Nominal Interest Rate or TIN is the fixed percentage that banks use as a payment concept for the money they lend. In other words, what they charge for leaving you money. If the opposite is not specified in the contract, the TIN is annual. There are times that can be monthly. In MoneyAxis Finance, the TIN of online personal loans offered is 21.72%.

To compare between two loans you must pay attention to the APR

You should not confuse TIN with APR when you are calculating loan interest. The Annual Equivalent Rate not only reflects the price that the bank will charge you for lending you an amount, it also takes into account the expenses and commissions that it entails and the time and in the way in which it will be returned. All this is calculated with a mathematical formula whose result tells us what the effective cost of the credits is. Therefore, when comparing those offered by several financial institutions is one of the data in which you should look more closely. In MoneyAxis Finance the APR that is paid is from 23.95%.

In MoneyAxis Finance you will not have to pay opening or valuation commissions

These are the interests of the loans that you will find when you go to apply for one, but they are not the only charges that banks can charge you. For example, there is the opening rate for which you will have to pay an amount for the mere fact of signing a credit. Or a bank may charge you more as a study or appraisal fee. This is to check your creditworthiness, your accounts to see if you will be able to repay the amount borrowed. In MoneyAxis Finance there are no opening fees or study fees.

 

When you go to ask for a loan?

When you go to ask for a loan?

The simulator will help you know how much money you will have to pay back each month and what is the final price just by entering the amount you want and the installments in which you want to pay it back. Keep in mind that the offer made to you may not match exactly what you wanted, but that is the one that best suits your situation so you don’t have financial troubles later.

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