1. What is the ING Personal Loan Repayment Formula?

The ING Personal Loan Repayment Formula calculates the fixed monthly payment required to repay a loan over a specified term. It accounts for the principal amount, interest rate, and loan duration to determine consistent monthly payments.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( P \) — Principal loan amount (AUD)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (term in years × 12)
• \( PMT \) — Monthly payment amount (AUD)

Explanation: The formula calculates the fixed payment needed to fully amortize the loan over its term, with each payment covering both interest and principal.

3. Importance of Loan Repayment Calculation

Details: Understanding your monthly payment helps with budgeting and ensures the loan is affordable. It also allows comparison between different loan offers.

4. Using the Calculator

Tips: Enter the loan amount in AUD, annual interest rate (%), and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does this include ING's loan fees?
A: No, this calculates principal and interest only. ING may charge additional fees not included in this calculation.

Q2: What's a typical ING personal loan interest rate?
A: Rates vary based on creditworthiness, loan amount, and term. Check ING's current rates for accurate information.

Q3: Can I make extra repayments on ING loans?
A: ING typically allows extra repayments without penalty, but confirm with your specific loan terms.

Q4: How does loan term affect payments?
A: Shorter terms mean higher monthly payments but less total interest. Longer terms reduce monthly payments but increase total interest.

Q5: Is the interest rate fixed or variable?
A: This calculator assumes a fixed rate. For variable rate loans, payments may change over time.