Let's say you take a personal loan with premiums R2,200.00 per month at the following :
Amount : R50,000
Period : 30 Months
Interest : 20%
If you decide to pay extra into the account, shouldn't either the term / amount change?
Using the same figures, first month I paid R10,000.... second month R5,000 .... and the third month another R5,000.00. My balance is reflecting these amounts have come off (ie it's reading R30,000) - but the term still reflects 27 and the premium R2,200.00
I assumed something would change ?
ie Premium would now be be around R1,500?
or my term would be 18 months?
I thought it was much like a home or vehicle loan - but apparently not ?
Amount : R50,000
Period : 30 Months
Interest : 20%
If you decide to pay extra into the account, shouldn't either the term / amount change?
Using the same figures, first month I paid R10,000.... second month R5,000 .... and the third month another R5,000.00. My balance is reflecting these amounts have come off (ie it's reading R30,000) - but the term still reflects 27 and the premium R2,200.00
I assumed something would change ?
ie Premium would now be be around R1,500?
or my term would be 18 months?
I thought it was much like a home or vehicle loan - but apparently not ?
