Understanding the true cost of a loan before you apply
When comparing loans, it is tempting to focus only on the monthly payment. Yet two loans with similar payments can have very different total costs, depending on the interest rate and the duration.
The total cost of a loan is the difference between everything you will repay and the amount you borrowed. A longer duration lowers each payment but generally increases the total interest paid.
Compare loans on their total cost, not only on their monthly payment.
Questions to ask before you borrow
Before committing, take the time to check that the repayments fit comfortably within your budget, including if your situation changes.
With the Finovia Bank loan simulator, you can estimate your monthly payment, the total interest and the total amount repaid before submitting your application from your client area.
This article is provided for general information only and does not constitute personalised financial advice.
