Is it important to do a credit simulation before you apply for credit? Credit simulations illustrate how many installments you need to pay in each period according to the interest rate and tenor.
Let’s see how credit simulations can help your finances not fall apart.
The Importance of Credit Simulation
“Oh yeah, it’s really complicated to have to simulate it first? Just count the interest, found out how many installments per month? “
In this practical era, doing credit simulations is very easy and not complicated. In fact, you can feel the benefits that will help you compare your financial capabilities with the amount of the monthly installments.
But what is actually the credit simulation?
Credit simulation itself is actually a calculation that gives an idea of the amount of installments in a financing.
Of course, each simulation from a different site or application has different contents. However, in general the calculation scheme applied is the same.
Curious about what credit simulations are and what are the benefits?
Through this article, Twindoo and Twindee have summarized all about credit simulations. Thus, you can understand the functions and benefits before applying for credit so that your finances are not messy.
Credit Simulation by Using a Credit Calculator
Today, more and more applications are helping you to do credit simulations. In addition to easy and practical, of course, it really helps you in making credit decisions that suit your needs
Then what is a credit calculator like? Let’s look at the Twindoo and Twindee application version of the credit calculator!
The Twindoo and Twindee application has a property credit simulation feature that can be used for any credit, such as a Home Ownership Loan (KPR), Motor Vehicle Credit (KKB), and other loans.
Thus, you will be helped in doing credit simulations easily and practically.
Terms that are often used in credit
In addition to the types of interest rates and how to calculate them, it turns out there are still other terms that often appear in credit. For more details, let’s look together with the following explanation:
Cap or Ceiling
It is a changing interest rate like a floating interest rate but is given a maximum limit by the bank so it is not too high.
For example a mortgage with a cap interest of 10%, for 2 years; then in these 2 years, the interest rate can go up and down, but not more than 10%.
Pit or Floor
It is a changing interest rate like a floating interest rate but is given a minimum limit by the bank so it is not too low.
Eg mortgages with interest p it 10%, for 2 years; then in these 2 years, the interest rate can go up and down, but not less than 10%.
Examples of Promos: Fix KPR & Cap 6 Years
Sometimes the bank will make a combination of fixed interest rates, cap interest rates, or floating interest rates.
Generally the bank will offer a fixed interest rate initially, which is then followed by a cap interest rate for several years, and the remainder will be subject to floating interest rates.
For example, a 6-year Fix & Cap Mortgage from BCA that provides loans to customers:
- Interest fix 7.99% eff in the first year to the third year.
- The maximum interest stamped is 8.99% if in the fourth to sixth year.
- Monthly installments in the seventh year and so on will follow the prevailing interest rates.
This program provides facilities for you in the form of certainty of interest in the first 6 years, with a minimum credit requirement of 8 years.
In addition to certainty in interest rates, BCA also provides several benefits to customers (quoted from the BCA website), including:
- Life insurance premium cashback . Together with six well-known insurance companies, namely AIA Financial, Panin Dai-ichi Life, Central Asia Raya Life Insurance (nationally valid), BCA Life Insurance, Life Insurance Simas, Sinarmas MSIG Life Insurance (valid in the Jabotabek area and certain regions), you can get cashback . The amount of cashback depends on the premiums listed on the insurance certificate (around 10%).
- Funds held for 3 times the initial installments are flexible, meaning that the customer can use the funds if needed by not getting an interest discount of 0.5% so the applicable interest becomes the first 3 years fix 8.49% eff. And the next 3 years maximum cap 9, 49% eff.pa When a customer settles back funds 3 times the initial installment, the applicable program interest will be as before.
- Floating interest discount, 0.5% applies also to interest in the floating period until the credit period ends, as long as the customer has funds held 3 times the initial installment.
- Loan migration. Customers or existing debtors can migrate and join the BCA Fix & Cap 6 KPR program this year by following the applicable regulations.
Know and Use Wisely
Once you have a glimpse of the sundries of credit along with the types of interest and how they are calculated, you will be wiser in conducting credit simulations according to your credit needs.
Do not let the loan that originally was intended to help you in financing become a disaster in your financial arrangements and provide an endless debt burden.
Do you have questions about other credit simulations? Leave your comment below . If you have questions, please submit your question in the column below. Our Financial Planner is ready to help you, thank you.