Equal vs. Balloon Repayments

-


Equal vs Balloon


SeedIn has 2 types of repayments: Equal and Balloon. 

Look at the comparison below if we will invest on equal and balloon for both 10k php.

Note: these are 2 different projs so the balloon has a shorter contract, thus smaller total interest at the end.


If you want to learn first how to calculate the interest, please click here. 


Equal monthly repayments, 10mos contract: you will get a part of your capital and interest monthly. You can immediately use the repayments to invest in a new project or withdraw to your bank account.




The payments for each month are the same, kaya sya tinawag na Equal Monthly repayments. It is the sum of the capital and interest, divided equally between the payouts.

So sa example, we invested 10k php and ang interest natin for 10 mos is 816.7 php.

Total capital + interest = 10,816.7 php
Divide by 10 kasi 10 mos yung contract 
So, 1081.67 php per payout. 




Balloon repayment, 5mos contract: only interest ang makukuha natin each month and the full capital and remaining interest eh sa end of contract. 



So sa example, we invested 10k php and ang interest natin for 5 mos is 408.35 php.

Interest = 408.35 php
Divide by 5 kasi 5 mos yung contract 
So, 81.67 php every month sa first 4 mos ng payout kasi interest lang ang babayaran per payout. 
Sa last payout, yung last na 81.67 php, kasama na yung capital na 10k.



The repayments are already defined on the loan agreement contract and it depends on the project itself. A project cannot have both types of repayments at the same time.

We can say that the Equal Monthly repayment is better, but sometimes, Balloon type gives higher interest, so it's really up to you and on the availability of projects. 



To those who want to start investing, please click here:



Note: Choose INVESTOR during sig-up and NOT Issuer. It's also better to use email registration when signing-up since Facebook registration has some known issues.




Disclaimer: any investment has risk. Just do your homework and research about it before investing. As the experts say, invest only what you can afford to lose and not your emergency funds. Diversify your portfolio and don't put all of your eggs in one basket. 


Copyright investamommy.blogspot.com 2020
All Rights Reserved 


Comments

Post a Comment

Popular posts from this blog

SeedIn: Invest from 1k php

-
Image
What is SeedIn?  Sabi nga, if you haven't started investing yet, there is no better time to do it than today. I, myself wished I could have started investing at least 5 years earlier, but at least I started it sooner than later.  It doesn't matter whether you started investing with 1k, 10k or 100k. What matters is that you started. And with SeedIn's 1k PHP minimum investment, there's no reason not to.  So, a friend referred hubby to this investment platform called SeedIn and it's a P2B (Peer to Business) type of investment.  Since 2017, it has already facilitated more than 415 million worth of funds for SMEs and local businesses and more than 9.9 billion for Asia Pacific countries (SeedIn Singapore, Taiwan and Cambodia).  Hubby has already earned some payouts and since I think that the interest rates are great, I also asked him to refer me. Before I put my funds though, I already did my own reading and got myself informed about this company. Since July 10, I als...
Read more

How to Calculate the Interest?

-
Image
How to Calculate the Interest?   Sample Scenario: Proj rate:         14% per annum  Investment:    10k Tenure:            10 months 1. Get the interest per month, so divide natin si 14% by 12 kasi yung 14% eh per annum rate yun.  14%  /  12     =   1.1667%            eto yung interest per month  2. Get the interest rate for length of contract. So multiply natin sa 10 kasi 10 months yung contract. Kung 5 mos tenure, syempre sa 5 nyo lang din multiply.  10   x    1.1667%   =    11.6667%       eto yung interest rate for 10 mos 3. So kunin natin interest ng 10k php sa 10 months. 11.6667% is 0.1167 ang value na gagamitin to multiply.  10,000 php    x     0.1167     =    1,166.67 php      eto yung interest ng 10k for ...
Read more