What is simple interest?

How much is the common simple interest? Does Cathford Group Credit offers competitive simple interest?

 

Definition of 'Simple Interest' A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate by the principal by the number of periods.

 

The interest rate on a credit loan — for instance, a home mortgage, personal loan or car loan — is the cost required by a lender to lend out the money. When assessing your loan options, ascertain whether the rate is compounded interest or simple interest. Compounded interest includes any interest accrued to the principal. Simple interest is based only on the remaining amount of the principal not yet paid. Both are acceptable practices; however, loans with compounded interest can be more costly. Hence, make sure you know what you will be paying when you sign any agreement. The Cathford Group Credit Inc. only applies simple interest to personal loans. At The Cathford Group Credit Inc., we commit to provide a simple and clear fee structure. So, the only fee you will ever get to pay the company is the daily simple interest applied on your loan.

 

A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate by the principal by the number of periods.

 

Interest computed only on the principal and (unlike compound interest) not on principal plus interest earned or incurred in the previous period(s). Simple interest is used commonly in variable rate consumer lending and in mortgage loans where a borrower pays interest only on funds used. Formula: Principal amount x Annual interest rate x Number of years.

 

Simple interest is merely interest which is calculated every time on prime amount

 

Simple Interest Formula:
Interest Rate X Principle Amount

Definition:
Fast way to determine interest rates payable

 

Interest paid out on the Principal Amount only and the interest paid out don't gets added to principal.