How to calculate interest on a loan agreement

When repayment of funds borrowed by the contract of loan, the question arises: as the interest for the use of funds? The fee for the use of borrowed funds can be directly specified in the contract. If the interest rate is not set, then the borrower shall pay to the creditor interest in accordance with the refinancing rate set by Central Bank at the time of repayment of the loan.

You will need

• Calculator loan agreement

Instruction

1. At the conclusion of the contract of the loan make sure that the question of payment of interest was clearly spelled out in the document. Unlike a loan, the loan can be granted on a free basis. But in this case such a condition should be expressly stated in the contract. If you are going to receive from the borrower interest, specify in the contract of loan , their amount and procedure of payment.
2. Interest on the contract loan may be denominated in cash or in kind. If you prefer the natural form of the payout will reflect this when drawing up the contract.
3. With the participation of a second party involved in the transaction, calculate interest on a loan, based on the terms of the contract. To do this, define the following indicators: amount of the loan, which accrued interest; the interest rate (monthly or annual); the dates on which the borrower will pay the percentage; number of calendar days in the period for which accrued interest.
4. Consider the calculation of the number of days in the year (365 or 366) in a specific month (30, 31, 28, 29 days). Interest is charged from the day that follows the day of granting the loan and on the day that you will return the principal amount (inclusive).
5. Determine the amount of interest on the loan obtained by the following formula:Interest = Amount of loan x Annual interest rate : 365 (366) days x the Number of days in the period for which accrued interest.
6. If the interest rate on the loan is not directly specified in the contract, in this formula instead the substitute rate of refinancing established by the Central Bank on the payment date, example:Amount of loan - 10000 rubles.
   The number of days of the loan - 60.
   Central Bank's refinancing rate to 8.25%.The calculation will look like this:
   10000 (rubles) : 365 (days per year) x 60 (days of the loan) x 8,25% (the refinancing rate) = 135 R. 61 kopecks (the interest amount).