# How to Calculate Loan Interest & Work Out Your Loan Repayments

## Can I calculate loan interest?

Are you in the market for a personal loan calculator? Maybe you’re ready to apply for an unsecured loan but are wondering how to calculate loan interest? At Safrock, we’ve got the tools that could give you a good idea of the cost of a personal loan. It is important to remember that Safrock is a lender-finder. That means we don’t actually provide cash, we find lenders who could. Keep reading if you’d like more details on how to calculate loan interest

## What is loan interest?

Before we get into the nitty-gritty of how to calculate loan interest, let’s talk about what interest actually is. Loan interest is the percentage of a loan paid by a borrower to a lender. In most cases, interest is paid in addition to principal payments. Loan interest is usually expressed in APR, annual percentage rate, that includes both the interest and any fees or charges.

At Safrock, our lender finding services means we could match borrowers with a variety of different lenders with a range of different interest rates. It is important to do your research before signing a loan agreement. Borrowers should make themselves aware of what the whole cost of the loan actually is – including any fees, charges and interest payable.

## How to calculate loan interest

These days, you don’t need to know how to calculate loan interest as, most of the time, lenders will do it for you. You may even get to see an estimate of your repayments when you apply for a loan. That said, if you want to calculate the amount of interest paid on a loan you’ll need the following information:

• The interest rate
• The length of time the loan lasts
• The loan balance you’re paying interest on (aka the principal amount)
• The monthly payment

There are then several formulas for working out your interest payments.

The simple formula is: Principal x rate x time

Chances are, your loan won’t be simple though. Since you often repay a loan over multiple years, interest is charged every year – sometimes compounding. Compounded interest causes your balance to grow over time. If this is the case for you, the easiest possible solution is to use one of the many online loan calculators to give you an estimate.

## Who is Safrock?

Safrock is an Australian lender-finder matching borrowers with local online lenders. We’re the middleman between you and your perfect personal loan. Our team are committed to making it simple and stress-free for applicants to access fast, reliable and safe cash. From application to approval, our entire process is 100% online. That means you can apply wherever you are and whenever you like across Australia.

Looking for car loans, secured loans or unsecured loans? No stress, we could have a lender for the job. Not even bad credit has to stand in the way of a personal loan anymore. Safrock could find you a lender to approve a bad credit loan. We do our best to find open-minded lenders that won’t discount applicants based solely on their credit score.

Often, lenders will take a look at your income, spending habits and financial commitments whilst assessing a loan application so you get a better chance at approval. If you’ve been thinking about submitting an application, there is no better time than the present. You could scroll up right now and get started.

## Who is eligible?

So, now you know a little more about us, let us tell you who is eligible to apply. At Safrock, we like to keep our application criteria as simple as possible. Here’s what you’ll need to meet:

• All applicants must be over the age of 18;
• You must be receiving some type of regular income for the last 90 days into a bank account that is your own;
• Applicants must have an active mobile phone number and email address that we can contact you on;
• Use internet banking.

If you can say yes to the above, you could scroll up right now and start your application.

## How do I apply?

Wondering how to submit an application? You’ll be pleased to know it’s super simple and could only take you a few short minutes. Here’s what you’ll need to do:

### Submit an application

If you’re ready to submit an application the good news is you won’t even have to leave the comfort of your own home. Just head to the top of the page and use the loan calculator to input your desired loan amount and the repayment period. You should then be able to see the possible repayments on the loan.

### Fill out the form

We will then ask you to complete our online application form. Safrock’s 100% online application form could only take you a few minutes to complete. We just need to collect a few important details to show a possible lender.

### We look for a lender

Once our team receive your application we’ll submit it to a variety of different online lenders. The Safrock team will do their best to match you with a potential lender. If we’re successful our team will put you in touch with a lender straight away.

Your new lender will send over an agreement for you to review and sign. The Safrock team encourages applicants to read through their agreement carefully. It is important to make sure you are aware of any fees or charges that could incur for late or failed repayments. If you have questions regarding the terms and conditions of your loan the Safrock team encourages you to get in touch with your lender as soon as possible.

Once your new lender receives a signed copy of your agreement they will transfer the cash straight into your account. Some lenders are now able to use instant banking. That means the cash could be in your account and ready to use in just 60 seconds.* It is important to remember, however, that some lenders might not be able to transfer funds instantly. If this is the case, you will receive your funds in the next round of banking.

## How to calculate loan repayments

Wondering how to calculate interest on a loan with us? It is important to remember that Safrock is a lender finder. That means we cannot speak for the interest that might incur on a loan from a potential lender. We can, however, give you a good idea of what a personal loan could cost you using our loan repayment calculator.

Saforck’s loan calculator allows you to input a loan amount between \$2,500 and \$25,000 and view the potential repayments over a period of 13 to 36 months. If you’d like to know more about the interest payable on a personal loan we encourage you to get in touch with your individual lender. Ultimately, they will be the best source for you regarding how to calculate loan interest

## What if I have bad credit?

Bad credit doesn’t have to mean a personal loan is off the table. When you apply with Safrock you’ll be pleased to know that we look for open-minded lenders who could approve personal loans for bad credit. Some lenders will look at factors like income, spending habits and pre-existing financial commitments to determine whether or not a personal loan is a responsible financial decision.

If a lender can see that you have made a considerable effort to reconcile bad credit you could be eligible for approval on a personal loan. So, what are you waiting for? Why not scroll up right now and use our loan repayment calculator to get started.

## Responsible lending

All Aussie lenders are required to comply with the Code of Responsible lending. What is responsible lending? Basically, it just means that lenders are required by law to do the right thing by consumers. Online lenders must:

• Make reasonable inquiries about the consumer’s financial situation, as well as their requirements and objectives;
• Take reasonable steps to verify the consumer’s financial situation;
• Conduct a preliminary assessment about whether the credit contract is ‘not unsuitable’ for the consumer (based on the inquiries and information obtained in the first two steps).

The Safrock team strongly urge all consumers to do their research before signing a loan agreement. It is important that you understand the full terms and conditions of the contract. In most cases, online lenders will charge a default fee for missed payments. Safrock encourages borrowers to make sure they know when repayments are due to avoid incurring these charges. It is also important to understand the full cost of the loan and how to calculate loan interest. If you’d like to know more about this we advise you to contact your individual lender.

## Can I get a payday loan?

Traditionally, payday loans were loans paid back in full on the borrowers next payday. This type of lending is now illegal and, therefore, Safrock cannot match you with a lender who provides payday loans. We can, however, do our best to find you a lender who could approve a SACC.

What is a SACC? A SACC is a Small Amount Credit Contract that covers loans up to the value of \$2,000. If you’re looking for a small amount of cash to borrow over a smaller period of time, the Safrock team encourage you to submit an application. We’ll do our best to match you with a lender who could help.

## Can I get a car loan?

Yes, Safrock could match you with a lender that could approve a car loan application. If you’ve been thinking about upgrading you could apply for between \$2,500 and \$25,000 for the car of your dreams. Our team will submit your application to a variety of lenders so you get the best possible chance at approval. Wondering how much a car loan could cost you? Why not scroll up and use our car loan calculator to check out what your repayments could be.

## Can I get a home loan?

Safrock does not find lenders who can provide home loans. If you’ve been googling ‘home loan calculator’ or ‘how to calculate home loan repayments’ unfortunately we are unable to help. Safrock could, however, help you find a lender to provide home improvement loans. If you’re keen to do some renovations or maybe even put in a pool, you could apply for \$2,500 to \$25,000 cash using our loan calculator at the top of the page. Why not check it out?