Some people have doubts when applying for a payday loan because they are afraid that the interest is too high.
In reality, the interest on a payday loan depends largely on who is asking for the money. So nowadays to have an accessible financial cost we must pay attention to other factors, for example the interest rate and the total financial cost.
The total financial cost is the most important thing of all
Because it is, in short, what you are going to pay in total. How is it calculated? The interest rate is added to the charges for the costs of the operation (insurance, commissions, etc.).
Our advice is to look at this number more than anything else: the financial cost is more important than the interest rate, because it may happen that a loan with a higher interest rate is the one with the best Total Financial Cost.
Now what exactly is the interest on a payday loan? As you know, the interest on a payday loan is the money you pay for using someone else’s capital. To calculate the interest amount of any loan, the following points must be taken into account:
- The time for which the capital is lent
- The interest rate
In general, the interest is reflected in percentage form, for example: 3% interest, and it is usually presented in daily, monthly or annual terms.
What are the percentages of interest rates in Argentina?
Answering this question is not an easy task. Why? Because rates vary from bank to bank and are tied to a changing economy like Argentina. The important thing is that, before applying for a loan, you should look at the bank with the lowest interest rate for the term that suits you best.
As you probably know the options are almost endless. Let’s see some examples. Suppose we agreed to a loan of half a million pesos. In addition to the fee, we must take into account the cancellation period, if it is flexible, at the client’s choice or not, etc.
Then you have to check whether or not the bank really offers us an extension in case we fall behind in paying the fee. This is important.
Some banks give up to 90 days with no added interest. If you see a bank offering this, it’s a good sign and you should add it to the positive balance.
Now we go to the complicated: the cost of financing. Here are two important points: the annual nominal rate (it should be of the order of 45%) and whether or not it is a fixed interest rate. But that’s not all: watch out for the full financial cost. Sometimes, adding all the expenses, it reaches 60% per year.
Are you a little dizzy? It happens to all of us. Traditional bank loans are complex. But take a little air because this continues. To everything we told you, we must add a commission of 4% as an advance payment. Of course, this is in most banks. If you find one that does not charge, much better!
If you are a self-employed worker or a monotributist, perhaps at the moment you are wondering what happens to you. In traditional credits, dependent workers tend to have more advantages than self-employed workers. But many banks accept monotributistas as potential customers. In general, you only have to present the latest payment receipts for the single-tax, the CUIT and a utility bill in your name.
Regarding seniority, for workers in a dependency relationship it is a minimum of one year, and a minimum of two years for monotributists.
What are Best Bank’ interests?
The amount that our clients are going to pay basically depends on two factors: 1) The amount of money you asked for 2) The time you requested for the money back
Best Bank gives you up to 30 days to pay (or a little more if you ask for an extension), but the longer the term, the greater the amount to be returned.
To find out what the final amount to be paid will be, use the loan calculator that is in your account once you enter your profile in Best Bank. If the final amount does not convince you, you can choose not to request, if it adjusts to your budget, the final amount will not change unless you request an extension or fall behind in payment.
The best thing is that you are not going to waste time trying the system, because one of the great advantages of this type of credit is that they are fast and zero complicated. You ask what you want, you decide the term and send the request.
Try Best Bank and then tell us. If you have any questions or want to tell us something, you can always write to info@Best Bank.com.ar or call our customer service center. Remember that we are here to serve you and help you.