Type Of Bank Loan Interest

You want to make a loan for your business capital to the bank? You should know the type of loan interest to the bank's money for every loan you will always be followed with interest. While different types of loans, different types of flowers too. In order not caught interest loans, identify type:

1. Fixed interest (fixed interest)

The interest rate will change during a certain period according to the agreement. If market interest rates change (up or down), a bank or financial institution will remain consistent in interest rates that have been set.

2. Flowers floating (floating interest)

Interest rates will follow the ups and downs of market rates. If market rates rise, the mortgage interest will go up. And vice versa. This system is applied to the mortgage, credit working capital loans, business, and investment.

3. Flowers flat (flat interest)

In this system, the amount of principal repayments and interest each month the same amount. Interest is intended as a short-term credit vehicle loans and KTA.

4. Effective interest rate (effective interest)

The calculation of interest expense is calculated each end of the installment payment period based on the principal balance. Thus, interest expense will decrease each month because of debt principal to be reduced.

5th. Interest annuity (anuity interest)

In the calculation of annuities, the portion of interest in the early days very large, while the main portion is very small installments. However, near the end of the term, things will turn around.