What are the conditions for obtaining a loan?

    Abdulaziz Sobh

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    Loans are one of the most important sources of financial profits for commercial banks and are one of the most important services provided to customers from banks. This is done by providing individuals and enterprises with money to cover the services they need. In return, the client offers many guarantees and pledges to repay these loans And the payment shall be made in several installments or in one payment. The guarantees provided to the bank shall be considered as procedures that shall preserve the right of the bank and shall provide protection against losses. In this article, we shall mention the pillars upon which it relies. A bank in providing loans, types of loans, and how to calculate loans.

    How to calculate the benefits of the loan
    The calculation is calculated by multiplying the amount of cash that we will receive by the bank rate and then dividing the output by one hundred and thus the value of the interest is obtained every year, and the total interest amount can be calculated by multiplying the interest value for each year by the number of years. To calculate the total amount, Interest, while to calculate the monthly installment the total amount is divided by the number of months of the loan.

    The question:
    If you want to get the amount of 150000 dinars.
    Bank ratio 5% for 5 years ie 60 months. 150000 × 5% = 750,000.

    Interest every year: 750000/100 = 750 dinars.

    The total interest amount is 750 x 5 = 3750 dinars.

    To calculate the total amount: 150000 + 3750 = 18750 dinars

    To calculate the monthly installment: 18750/60 months = 312.5

    Calculate the interest of the loans using the Excel program Write the principal of the debt, and the value of the interest agreed in the first column, and then the funds are filled with the value of the loans and the value and duration of the interest until the Excel program calculates the monthly payment of interest, for example, house of 50.000 dinars, In 20 years at an interest rate of up to 2%.

    Record the value of the debt in negative value with the need to inform Excel that you are required to pay for it, taking care to avoid writing the currency code Example: 50.00 = origin of debt.

    Determine the number of payments to be paid, leaving payments recorded per year, but the output will reflect annual, not monthly, payments. The number of years will be multiplied by 12 to calculate total payments. Example 50.00 = Debt, 360 = Number of payments.

    The interest rate is converted to suit the number of payments. Example: 2.12%=0.00166% The function = PMT is used to determine interest payments, by defining Excel's work with the antitrust calculation of the monthly payments, including interest. All that is necessary is to provide the necessary information And then select the function bar. This bar is located at the top of the spreadsheet and is shown in the ring. Then PMT is written. If the borrower is aware of how Excel is used, he can set the program to accept the batch value.

    Inputs are written in the correct order, within the parentheses, separated by commas eg: (50000.0-.360 .00166 PMT).

    The input button is pressed for the monthly payments account. If the data is entered in the correct order, the monthly payments will appear in the PMT = function in the spreadsheet, and if you see the word #NUM!

    The sum of payments is calculated by multiplying the output by the number of payments, in order to know the total amount that the borrower must pay.

    The total interest to be paid by subtracting the principal of the debt is calculated from the total amount due.

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