AFAIK, it would simply be
($10,000 * 0.05 / 365) * 30
The simple interest on a $10,000 loan for the month.
($10,000 * 0.05 / 365) * 30
The simple interest on a $10,000 loan for the month.
Minimum payment on Line of Credit
To make my budget as precise as possible, I need to know how to calculate the minimum monthly payment on my Line of Credit. I asked two people of the bank, but no one knows how to calculate it...
Let's say I owe $10,000 right now and my interest rate is 5%. What will be the payment taken out of my bank account on July 12? Thanks.
Let's say I owe $10,000 right now and my interest rate is 5%. What will be the payment taken out of my bank account on July 12? Thanks.
1 - 9 of 9 Posts
Thanks for helping me with the interest, but how much do I calculate the monthly minimum payment?
I don't know what you mean. For the Secured lines of credit that I have, the minimum payment is the interest on the loan. AFAIK, that's how lines of credit work.How much do I calculate the monthly minimum payment?
Unsecured lines of credit work a little different than a secured line of credit (like a HELOC). A HELOC requires interest only, but an unsecured LOC will require a min of 3% of balance payment/month (with CIBC anyways).
Mine is an unsecured one, then. It is with CIBC. I will calculate if 3% is the correct percentage. What does "unsecure" mean? Thanks.Unsecured lines of credit work a little different than a secured line of credit (like a HELOC). A HELOC requires interest only, but an unsecured LOC will require a min of 3% of balance payment/month (with CIBC anyways).
Secured = secured against a physical asset, usually either the equity in your house ("home equity line of credit") or a CD or bond held at the issuing institution.
Unsecured = no physical asset is pledged as guarantee.
Unsecured = no physical asset is pledged as guarantee.
No doubt about it, mine is unsecured.Secured = secured against a physical asset, usually either the equity in your house ("home equity line of credit") or a CD or bond held at the issuing institution.
Unsecured = no physical asset is pledged as guarantee.
Thanks for the information, it solves the problem of calculating interest.AFAIK, it would simply be
($10,000 * 0.05 / 365) * 30
The simple interest on a $10,000 loan for the month.
1 - 9 of 9 Posts
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