In a savings and loan business, of course we have taken into account various aspects of the business. Both in terms of capital and our business trips. Well, for those who are just starting out, sometimes confusing is how the calculation of capital and interest will be obtained from the determination of existing interest rates.
For example, for example in a village is a village-owned enterprise. This BUMDes moves in the form of integrated savings and loans to the community. In the sense of savings and loans intended as capital for SMEs in the village. This is the admin's own experience, eh, the Bumdes manager is still confused in calculating interest. So how ? Of course you have to look for materials for the calculation of interest.
We don't need to blame anyone, it's just that from various cases the point is that the calculation of interest on business is really needed. And this of course makes us provide information on interest calculation in a business. Good for business entities or SMEs who need an interest calculation. Here is a review.
Formula for Calculating Different Types of Loan Interest
1. Flat Interest Calculation
Flat interest rate is the easiest loan interest calculation. By using a flat interest calculation, you will pay the same principal and interest every month.
This calculation is usually used to calculate the interest on unsecured loans or unsecured loans. Flat interest rates are referred to as fixed rates where the credit ceiling and the amount of interest will be calculated in balance according to the term of the loan.
The value of interest will remain the same every month because it is calculated based on the percentage of interest multiplied by the principal plus the interest every month.
The calculation formula:
Monthly Interest = (P x l x t) / jb
Skills:
P = loan principal
l = interest rate
t = amount of credit period
jb = number of months in the credit period
2. Effective Interest Calculation
Calculation of the effective interest rate, also known as sliding rate, is the calculation of loan interest at the end of each installment period. Loan interest is calculated from the final balance each month.
Interest is calculated based on the principal amount that has not been paid by the borrower. That way the amount of interest per month will vary according to the principal amount that has not been paid.
The interest value paid by the borrower will decrease every month so that the repayments will decrease from time to time.
The second month installments will be smaller than the first month installments, the third month installments are smaller than the second month installments, and so on.
Calculation formula:
Interest = SP x i x (30/360)
Information:
SP = principal balance of the previous month's loan
i = annual interest rate
30 = number of days in a month
360 = number of days in a year
3. Calculation of Annuity Interest Rates
An annuity rate calculation is a modified form of an effective loan interest calculation. It aims to make it easier for customers to pay installments every month.
This loan interest calculation determines the amount of installments each month with the same amount, but the composition of the interest and principal installments will change every period.
The monthly interest value will decrease but the principal installments will increase. This interest calculation makes the portion at the beginning of the loan to be very large but will gradually shrink in the end of the loan.
Calculation formula:
Interest = SP x i x (30/360)
Information:
SP = principal balance of the previous month's loan
i = annual interest rate
30 = number of days in a month
360 = number of days in a year
Note: The formula for calculating an annuity interest is the same as the formula for calculating the effective interest
4. How to Calculate Loan Interest
For those of you who apply for a loan, the monthly interest rate that you must pay will be informed before you approve it, starting from 0.75% to 1.67% per month or in accordance with the provisions of the loan provider.