Hi, everyone! Have you ever borrowed a money from reliable money lender in singapore the bank or money lender? If you have, maybe you have already know about the interest that you need to pay monthly. QV Credit which is one of the reliable money lender in singapore will give you some explanation about the interest. Before we are going to talk about the interest, it is a good idea to know the definition of interest itself. When you lend or save your money to the bank, you will earn the money based on the percentage of your saving. On the contrary, when you borrow money from the bank; you should pay the percentage of your loan. Here are some types of the interest that you have to know:
1. Fixed interest rates
Fixed interest means that you have to pay the fixed or monthly interest which the percentage will be never changed. If you borrow the money for a year, you will pay the interest with the same percentage every months. If you pay the iinterest 5 percents every month, in the next month you will pay the same interest.
2. Simple interest rates
Interest is rarely counted by using the simple interest rate formula but rather are possible to be counted using the interest compound method. Yet, the simple interests are counted by multiple the credit anmout by the interest rate by the number of payment periods 24 months, for example.
3. Compound interest rates
The compound interest looks similar with the simple interest, but it related to any interest outstanding in the point of time. For example, if you use the simple interest and you borrow $2000 dollar, the interest will be counted as follow $2000 x 1 year X 10 %. So you will pay $200 per year. But, in compound interest, it will be counted as follow $2000 x 1 year x 10% = $200 in the first year interest, and in the second year the interest will be counted as follow $ 2200 x 1 year x 10% = $240 in the second year.
By this explanation,if you want to borrow a money from the bank, It is too recommended to borrow the with the simple interest or fixed interest because it is more lucrative and safer for you. If you need to find the best money lender, you can contact QV Credit that can give you the best interest when borrowing the money. So, what are you waiting for, please pick your phone and call QV Credit soon.