Personal Payday for loans – Read about loans, interest, APR etc.

When you need to borrow a loan, there are many terms that can be good to understand. To make it easier for you to understand what the terms related to loan inclusion mean, we have compiled a list of the terms and concepts you may encounter.

Read about loans, interest

Read about loans, interest

You can click below the word you want to know more about, or read further below the table.

loan terms

  • Part
  • Accounts Receivable
  • Borrowing rate
  • Borrowing rate
  • Fixed or variable interest rate
  • financing
  • Debt
  • principal
  • overdraft
  • creditor
  • credit rating
  • Runningtime
  • loan Proceeds
  • Lånetibud
  • Construction fee
  • Mortgage
  • Nominal interest rate
  • Rentebereqning
  • Compound interest
  • Restqæld
  • Total credit amount
  • Terminations
  • Loans
  • Performance
  • APR

loan Types

  • Annuititslån
  • unsecured
  • Fixed-rate loans
  • Standing loans
  • SU loans

Other terms

  • Payment Remarks (RKI / DebtorRegistered)
  • Inflation

loan terms

loan terms

Part

If you do not pay the full price for the item you buy, but pay it over an agreed period, then it is called purchase on installment. How long a period must be paid over is agreed upon in connection with the purchase being made.

Purchase on installments is the same as a credit, and is typically used in connection with the purchase financing of furniture, appliances and other expensive consumer goods.

Often, business offers for interest-free to withdraw the purchase over a period of time, other times you pay an interest or a fee in connection with the establishment of the installment scheme.

Accounts Receivable

The debtor is a term used in accounting for a person who has borrowed money, a borrower. The person to whom the debtor owes money is called a creditor.

Borrowing rate

The borrowing rate is another term for the interest rate, or effective interest rate. The borrowing rate depends on the number of interest rate increases (futures) per year. The more times interest is charged during the year, the greater the interest rate of interest.

Example:

If a loan has a nominal annual interest rate (nominal interest rate) of 8.00%, and interest is charged to the loan amount every month, then that means that the borrowing rate is 8.30%.

On the other hand, if there is a half-yearly interest rate increase, the borrowing rate would be 8.16%.

Debt

When borrowing money from a natural or legal person, a receivable arises, or a debt relationship, which is commonly called debt. The legal term for debt is a claim that arises between a creditor (lender) and a debtor (borrower).

principal

The principal is a term used for the size of the loan when it was subscribed, ie the original loan amount.

Fixed or variable interest rate

Fixed or variable interest rate

The interest rate on loans is either fixed in the term of the loan or variable.

Pursuant to Section 14a of the Marketing Act, it is a statutory requirement that loan announcement states whether the interest rate is fixed or variable, as it can be of great importance if the interest rate on the loan is fixed or variable in connection with assessing how well the offer is.

If the interest rate is fixed, this means that the interest rate does not change continuously in relation to some specified conditions.

By variable interest is meant an interest rate which, on the basis of some specified circumstances, may change.

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