The amortization of the loan is a more or less long period within which the borrower is required to repay the loaned capital, plus interest. The bank that provides the loan, in fact, requires a remuneration for the risk of lending money to the customer: this remuneration consists precisely of the interest rate, which can be fixed, and never change for the entire duration of the loan, or variable, following the trend of some reference rates. The duration of the loan coincides with the amortization period and varies according to the contractual conditions established at the signing: usually, a loan can last from 5 to 40 years.
The amortization plan must be clear to the consumer
when he signs a loan contract: this financing in fact commits to a period of indebtedness that can be quite long, so it is always preferable to be better informed about the commitment of which one is load. For this reason, at the time of meeting with a bank, it is advisable to have a quote delivered with a detailed amortization plan.
For example, this plan will indicate the frequency of the installments , which can be monthly, bimonthly or longer. The rate of the installments and the duration of the loan, together with the interest rate, are all elements that determine the weight of each individual payment. For example, the longer the mortgage maturity, the lighter the installments will be, with the same capital received.
The loan repayment plan can be requested from the bank
but it is possible to prepare using some specialized portals, which allow you to calculate your depreciation plan directly on our PC or smartphone. These sites require the inclusion of some information that is simple enough to find about our financing: the amount obtained on loan, the rate of the installments, the interest rate, the duration of the loan. The result of the calculation system will provide you with a more or less detailed repayment schedule, depending on the characteristics of the chosen web portal.
The amortization of the loan described by some internet sites can go into great detail and not only present you a complete program of the installments that you will have to pay, but also their composition. The repayment of the loan in fact provides for a share of repayment of the capital and a payment of interest . The calculated online plan will tell you for each installment how much you will have to pay precisely in interest.