On CoinLoan interest rate is affected by the annual percentage rate for a loan (APR) and how long you borrow for (loan term). The annual percentage rate on a loan is the amount the lender would charge if you borrowed the money for a year, as a percentage of the original loan.
Detailed explanation of interests calculation on CoinLoan platform for 2 loan products:
Term: 14-30 days
Daily interest rate calculation for short-term loans is a result of a division of loan term by number of days of a commercial year. There are 360 days in a Commercial year.
Formula is as follows:
Interest Amount = Daily Interest Rate × Loan Term × Loan Amount
Loan Amount: 10,000.00 USD
Term: 30 days
Interest Amount: 58.34 USD
CoinLoan Service Fee: 5.84 USD (*)
Borrower Returns: 10,058.34 USD
Lender’s Income: 52.5 USD
Collateral Value: 16,666.67 USD
Collateral Amount: 2.59789924 BTC
BTC/USD Rate: 6,415.44 USD
* CoinLoan Fee is deducted from Interest value on a Due Date
Long-term loan (Instalment loan)
Term: 2-12 months
Annual interest rate calculation for long-term loans is based on an annuity repayment method. CoinLoan apply 10% as a service fee from the interest amount for all loan instalment payments.
An annuity schedule is the most popular and most widely available repayment option for all traditional financial institutions.
Annuity payment schedule differs from the one that assumes payment of all the amount owed on loan pay-off date or the one that assumes interests to be paid periodically while the total amount of debt is to be paid on loan pay-off date. The amount of annuity payment includes the total amount of debt plus interests.
Loan Amount: 120,000.00 USD
Term: 6 months
Interest Amount: 2,461.86 USD
CoinLoan Service Fee: 246.21 USD (*)
Monthly Repayment Amount: 20,410.31 USD
Borrower Returns: 122,461.86 USD
Lender’s Income: 2,215.65 USD
Collateral Value: 200,000.01 USD
Collateral Amount: 31.17279862 BTC
BTC/USD Rate: 6,415.85 USD
* CoinLoan Fee is deducted from Interest value on each instalment payment Due Date