![]() ![]() On the other hand, if interest rates in the market fall, loan interest rates will fall. ![]() If the interest rates in the market rise, the loan interest will also rise. The change period follows the agreement in the financing or loan agreement. Floating Interest (Floating Rate)Ī floating interest or floating rate is an interest rate that can change periodically following the development of interest rates in the market during the current credit period. However, if the interest rate on the market decreases, you must still pay installments at a fixed rate even though the percentage is higher.Įxamples of loans that apply fixed interest rates are Home Ownership Loans (KPR), Unsecured Loans (KTA), and several types of short-term loans. The advantage of fixed interest rates is that you don't have to worry about increasing interest rates in the future. An example of how to calculate fixed loan interest is, if a bank or finance company provides a fixed interest rate of 12% per year during the installment period, the interest to be paid per month is the same every month at 1%. Fixed Interest (Fixed Rate)įixed interest or fixed rate is an interest rate that does not change (fixed) during the current credit period. Types and How to Calculate Loan Interest Properly and Correctlyīefore getting too far into knowing how to calculate the correct loan interest, it's good to know the types of interest rates that are distinguished by the nature of their changes during the tenor and the nature or method of calculation.īased on the nature of the changes during the tenor, interest rates are divided into two, namely: Based on the Nature of the Changes during the Tenor 1. ![]()
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