“How long should I take a loan?”
– This issue often arises for organizations in need of additional financing, and for individuals, with other goals of taking a loan. Depending on the loan term, credit rates are changing, and, therefore, the price of the loan is also changing. This article will talk about choosing the optimal loan term based on the price of credit money received.
First we decide on credit rates that change from the loan term. The data was obtained as average of twenty -five large Russian banks with the condition that a guarantor is required to obtain a loan, a credit history and customer data for standard stop – conditions are checked. Information is given in the consolidated table.
As we see, interest rates are increasing with an increase in the deadline for taking a loan.
This is easy to explain – the bank reduces non -payment risks by increasing the interest rate, because the higher the term – the higher the risk. You can also trace the following trend – the more the amount on credit is taken, the lower the interest rate.
The explanation for this is the following: firstly, the stimulation of customers (primarily large, corporate) in order to take large amounts, and in the second reduction in the rate allows large loans to be more accessible by themselves.
Let’s move on to determining the optimal loan deadline. If you ask how old it is, then you cannot unequivocally answer this question. To determine the optimal loan term, several criteria are indicated in practice.
For individuals:
1) the value of the acquired value;
2) monthly income;
3) credit history;
4) bank loyalty.
For legal entities:
1) the form of the organization (IP/LLC/CJSC/Tao/OJSC);
2) the amount of capitalization;
3) the purpose of lending;
4) credit history;
5) bank loyalty.
As we see, there are certain similarities in criteria for legal entities and individuals. When choosing a loan term for legal entities, the process of more laborious. Consider this example, which will more accurately allow you to understand the essence of the problem and the path of solving it.
We have an enterprise of Center-Capital LLC, which needs a loan in the amount of 200,000 rubles in order to purchase working capital and for the development of a business leasing business . Two years ago, the company took a loan at the ICS bank in the amount of 200,000 rubles. Local debt at the moment on a loan taken approximately 80,000 rubles. The annual revenue of the enterprise is an average of 1,500,000 rubles.
Of these, we determine the optimal loan term.
The first thing the bank will check is the credit history. Even the fact that the organization has an already taken loan is not a reason for refusing to issue if payments are received in the necessary order. 200,000 rubles is not a relatively large amount. In this case, the interest rate will completely depend on the loan term. Capitalization corresponds to take a loan for the long -term period, since then the payments of interest and main debt will gradually fall on the cost of revenue from the services of the leasing of equipment . Based on the amount and capitalization, the best option for lending is two years. The table below shows payments of payments, you can also see what share will be occupied every year, and what share is the main debt.
[Payment calculation table]
As you can see, every month we will pay a bank of 10390 rubles, which is a relatively small amount for an enterprise with such a high capitalization. The final interest amount is 49273 rubles – the cost of a loan over two years, which is a very acceptable price.
Taking into account the criteria written above, we can conclude that credit money with their proper use can be a good financial tool for investing an enterprise, as well as for the effective use of finance by ordinary citizens. With the correct selection of the loan term, its return to the bank will not be difficult and you will avoid unnecessary problems.