The request for a loan is always linked to the concern for the payment of monthly installments. Often the urgent need or the habit of referring to the family institution or to the one closer to home, induce us to make hasty and inconvenient choices.
Before signing a loan contract, it is a good idea to make an accurate calculation of the actual amount of the loan,
to know its total price and to see if you can pay the monthly installment.
First of all, to make a precise calculation, we need to consider the two loan interest rates : the Tan and the Taeg . The first, often cited in advertising sponsors with the “zero-rate” formulas, represents the annual nominal rate , ie the interest rate applied to a loan, calculated on the amount provided by the bank. From this indicator, in reality, however, all the “ancillary” expenses of the loan are excluded (preliminary investigation costs, those of practical opening, collection of installments and any insurance costs), for which it is necessary to calculate the loan installment, but it is not enough to understand the real cost.
To do this, it is necessary to refer to the Taeg , ie the Global Effective Annual Rate , also called the synthetic cost indicator (ISC), which, in addition to indicating the interest applied to the loan, also includes all the ancillary charges to be borne by the debtor . In the Taeg, based on the provisions of the consumer credit legislation, the cost of commissions, taxes and mandatory insurance must be indicated. In the Taeg, on the other hand, the expenses related to state stamps, notary fees, default interest and non-compulsory insurance are excluded, which must however be taken into account.
Calculating the final price of the loan
The important thing, therefore, is not to simply stop at the Tan, but consider the Taeg and all the expenses not included in it. A good way to make an online Lily Bart calculation is to refer to the calculation services offered by the same banking institutions, while if you want to compare the different Lily Barts, you can consult the SuperMoney website.