Repayment of a loan
In the repayment of a loan, regular maturities occur, including capital and interest. During the entire repayment period, the outstanding capital can be calculated.
This is important data to know because it represents the real part of the rest to repay. When subscribing to a loan, the financial institution provides the customer with a depreciation schedule that details the monthly payments. During the life of the contract, the client thus has a precise vision of the remaining capital that is to say, the amount of capital that remains to be repaid.
Determination of the outstanding capital
A loan is a contract between a borrower and a financial institution, which involves the repayment of the first borrowed capital, plus interest, which pays for the service. To have a clear view of the situation of a loan, it is important to know the remaining capital, which represents a statement of the contract, namely the refund already made and the rest to be refunded. In practice, it is equal to the difference between the borrowed capital and the consolidated capital already paid.
The importance of the amortization table
With thecredit agreement , the financial institution has the duty to provide its client with a synoptic document of monthly payments due: the repayment schedule. This is the equivalent of a amortization table multi-entry book, which includes various items of information such as outstanding principal, amortized capital, interest paid and insurance premiums, if any. It must be carefully preserved, because it gives a very precise state of its loan.
Facilitation by financial institutions
The repayment table is an essential document to know the situation of a credit in progress. Taking advantage of new technologies,credit organizations have taken the step to improve their services and now offer tools to calculate in real time the outstanding capital. By simple call to our customer service, we send you by mail the outstanding capital or your depreciation schedule.