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Company Loan Type APR Est. Pmt.

daily simple interest

Anonymous
Posted on: 15th Dec, 2004 04:35 pm
how does this work: If you pay after the due date are you actually paying additional interest and if so can you pay off your loan on time.
Hi Cindy,
Firstly, you must get this clear that you can pay the amount after the due date, it is not considered as 'late', it is only 'overdue'. It will not affect your interest rate, nor your loan term.You will be asked for a late charge at the end of the deal.It is only at the assessment table that you need to pay this amount.
If you have further queries feel free to ask us, We are always there to answer them.
Thanking you,
Jessica
Posted on: 15th Dec, 2004 07:07 pm
In daily simple interest method the interest is calculated on daily basis and the amount of interest that is due varies with each mortgage payment as it depends on the number of days that have lapsed in between the payments.

James
Posted on: 07th Feb, 2006 01:04 pm
This method is very similar to the simple interest method, the difference being that the interest is calculated on the actual balance each day.

Here the loan balance is reduced on the same day the payment is received unlike the simple interest method where the loan balance gets reduced on the due date after the after the payment is made.

Thanks,
Rhonda
Posted on: 07th Feb, 2006 01:15 pm
I have a tenant agreement which states a daily charge of 6% can be incurred on late payment of rent. If a amount of £395 was due on the 21/05/10 and still has not been paid, how would this be calculated?
Posted on: 14th Jun, 2010 01:45 am
Hi Stevenbahia,

As per the agreement, you will be able to charge 6% interest rate on a daily basis for the late payment. The tenant is 24 days late on his or her payments. As far as I can calculate, 6% of 395 is 23.7. Thus, on a daily basis, you'll be able to charge your tenant $23.7. For 24 days, the amount will be $568.8.

Thanks,

Jerry
Posted on: 15th Jun, 2010 02:41 am
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