Calculating Loan Interest
The interest rate is always the most important factor to consider when applying for a loan...
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Where should you borrow? The best way is choosing the institution which suits you most. There are plenty of financial institutions and personal loan products that can solve your financial needs in a few simple steps. For example, Promise offers fully online application and speedy preliminary approval so you can get the money easily. However, still many people struggle where to borrow when choosing loan products.
Personal loans can help you achieve your immediate financial goals; however, they can also affect your future financial plan, so it is important to take the following points into consideration before determining where to borrow so as to choose the most suitable personal loan solution.
The length of your repayment period will affect your monthly payment. A longer repayment period means a lower monthly repayment amount, with less repayment pressure.
However, it also means a higher total interest. Therefore, when applying for a loan you should evaluate your financial status and repayment ability in order to choose a suitable repayment period. Choosing loan products with flexible repayment period can save your interest expenses and shorten the repayment period.
When borrowing money, it's better to choose a loan product with lower interest rate because a higher interest rate will increase the total cost of a loan. Before borrowing money, you should learn about different methods of interest calculation such as monthly flat-rate, day rate, etc. When you compare different loan products, you should also take the annual percentage rate (APR) into consideration.
The interest rate of Promise's personal loan is calculated on a daily basis, which means the interest diminishes with the repaid principle. It is more cost-saving than products that calculate interest on a monthly rate basis. Promise also offers products with APR as low as 1.12%.
You may also calculate the repayment amount and period using the loan calculator as a reference when you are considering the full cost of borrowing money.
Some financial institutions charge handling fees and administration fees when granting loans. When comparing loan products, you need to check if there are any hidden costs or interests which will eventually increase your loan cost.
Promise has no hidden costs or handling fees attached to their product, so our clients will receive their loan in full. Loan cost is clear at a glance, giving you peace of mind when you borrow.
It is common that loan application requires documents including HKID card, proof of address, proof of income, etc. Some people may not be able to provide the required documents, which results in being rejected for a loan. Certain financial institutions have launched solutions that require no supporting documents to simplify the approval process and solve financial difficulties more quickly. Promise lets you apply for a personal loan up to HK$100,000 with your ID card and mobile phone number only, with no proof of income is required. This makes it easy and quick to get your funds.
To attract customers, financial institutions often offer promotions or rewards, mostly in the form of cash rewards, supermarket coupons, etc., which are typically on a "borrow more, earn more" basis. At Promise, we offer different promotions to both new customers and existing members. Customers who apply and withdraw loans successfully can enjoy rewards, which help to reduce the overall loan cost effectively.
Before applying for a loan, you should consider various factors and compare different loan products, in order to choose the institution and personal loan plan that suits you best and reduces your interest costs. By doing so, you can manage your loans more wisely and enjoy a healthier financial condition.
