How Much Interest...

[cassa333]

Hi,

I am trying to find out how much interest there would be on a £1250 loan taken out over 1, 2, 3 and 4 years. I don't know what the interest rates are at the moment but would, I suppose, look for the average

I don't need the loan myself so don't know how to go about getting a quote with out putting my details in. The wonga site only went up to £500.

It doesn't need to be exact just an estimate.

Thank you

[factor-fiction]

It depends whether you want to pay back in instalments (most lenders would expect that) or at the end of the period.
There are several online calculators.
The rate will vary from around 8% pa to several thousand % pa depending on things like credit rating

[cassa333]

Thanks Factor,

She is looking for monthly installments. She wants to pay over the longer period (4yrs) and I am suggesting a max of 2yrs.

If for example it was an easy £1000 would 8% be £80 a year interest? or is it worked out differently?

[factor-fiction]

In your example the interest payments would be roughly half that since the capital balance would be reducing each month

[factor-fiction]

(My post above was based on a 1 year loan and assumed 8% was the APR)

This site will help

http://www.thisismoney.co.uk/money/cardsloans/article-1633405/Loan-repayment-calculator.html#axzz2Jv7RBXdS

[cassa333]

Thanks Factor,

Just out of interest do you know what the average interest rate is for a 1 yr loan of £1250 for a couple where one works and one doesn't?

Thanks

[factor-fiction]

Have a look here
http://www.moneysavingexpert.com/loans/