Monthly Installment
The monthly installment is the constant amount that must be paid each month to repay a loan. It remains the same over the entire period specified when applying for the loan. In the case of annuity loans offered exclusively by Crowd4Cash, the monthly installment is made up of two components: the repayment (repayment of the loan amount) and the monthly interest charge.
The repayment serves to gradually repay the original loan amount. At the same time, interest accrues, which is to be understood as the cost of using the loan. In the course of repayment, the ratio between repayment and interest changes: the interest portion decreases while the repayment portion increases.
The monthly installment is calculated so that the loan is repaid in full within the specified term. In this way, the lender retains full control over the financing and can ensure that the borrower can meet his obligations.
The clear structure and predictability of the monthly payment make annuity loans a popular choice for borrowers. They provide financial planning security and allow for solid long-term financing.