Credit, calculation of the liquidity burden. Basically, the credit can be calculated by each consumer itself quickly and easily. Credit calculation: advance payment, additional payment.

## Needs formula for the credit calculation

Hello, I’ve already researched the net, but I could not find anything. Thank you for your help. You need at least an annual interest (fixed, depending on the creditworthiness of the debtor). Assuming that there is the simplest use case (eg 2 annuities at the end of each period), then you have the equation: Sure, I have forgotten the interest number.

The total costs and the monthly installments are to be calculated. It’s just a simple bill for the language school. General: You should resolve this formula to A. According to my loan calculator (if I include handling fee in the monthly installments: For the school such problems are completely inappropriate, because it would take hours to make 24 addends and calculate everything with the calculator.

## Credit calculation and allocation

The credit calculation is presented to many people as a seven-seal textbook and is therefore in no way transparent. Not infrequently laymen strive to fathom the credit calculation. For example, most borrowers rely blindly on the bank and do not even begin to examine the calculations.

This will in most cases have no further consequences, as the credit institutions will work properly, but dubious providers could take advantage of this naivety and penalize borrowers. However, potential borrowers should not only be able to understand the credit calculation for reasons of prudence, because those who have the appropriate expertise can make a credit comparison much better.

In addition, it creates a better picture of the functioning of a house bank, so that customers know before the lending, whether their ideas and needs really realized or not. If a customer requests a financing option, the respective house bank first calculates a loan. Contrary to the often erroneous assumption, not only the amount of the desired loan and the duration are decisive.

The lending business is usually much more complicated because it also takes into account the maximum monthly installments, the interest rate and the creditworthiness. The question of whether and to what extent a customer gets a loan depends on different criteria. Giving loans is not just about the needs of the potential borrower.

The loan amount must be reasonably related to the collateral and the repayment capacity of the borrower. The loan amount must be in reasonable proportion. Based on all these criteria, the bank calculates the loan. For consumers, the focus is on their own consumption, so that a detailed credit calculation can be superfluous. Nonetheless, credit institutions attach great importance and make the granting of credit dependent on the credit calculation.

From the bank’s point of view, this is quite understandable, as the banks pursue two fundamental objectives when granting loans. Central concern is the repayment of the loan. If, contrary to expectation, the borrower can not pay the agreed loan installment, then other collateral positions must be available so that the borrowed capital does not completely default.

In addition, when calculating the loan, it should be borne in mind that the house bank can not use the borrowed capital for other purposes. The interest on the loan should act as compensation. When calculating the loan, these two objectives must be reconciled.