Any loan contract is repaid according to a specific schedule, with a share of capital, a portion of interest and insurance premium if subscribed, summarized in a depreciation schedule.
The amortization table, a synthetic vision of the loan repayment
This document has a clear presentation, which makes it practical and allows a single reading to gather more information about its credit and even take action accordingly. It is mandatory each time one subscribes a depreciable loan and must be given to the customer at the time of the subscription.
Presentation of the amortization table
The amortization table is a document, which details the repayment of a loan. Generally, it presents the following data in columns:
• Date: This is the due date to which the monthly payment is due.
• Monthly payments: the amount to be paid for the corresponding month. The monthly payment is detailed with the fraction of the capital, the share of interest and the optional insurance premium.
•Remaining capital: amount still to pay to repay his loan.
The information gathered through this tool
The amortization table is rich in lessons and allows you to see at a glance a lot of details about its ready
. When subscribing to optional loan insurance, in addition to the basic information, the depreciation schedule should show the monthly insurance premiums. The distribution on the monthly installment between capital and interest is interesting, insofar as it makes it possible to know if one is rather at the beginning or at the end of its repayments. A borrower advised can then determine, from the amortization table, the precise moment when it can consider a prepayment.
Obligations vis-à-vis the borrower
The provisions laid down by law on consumption
Lead financial institutions to provide with the contract a depreciable credit an amortization table associated. This is part of the measures on transparency and the obligation of information to protect consumers.