How to calculate unsecured consumer loan interest?

Are you intending to take out an unsecured consumer loan but do not know its advantages? Or do you want to know how to calculate the interest rate on unsecured consumer loans to visualize how much you have to pay monthly? So please read the article shared below to understand more!

1. What is unsecured consumer loan?

An unsecured consumer loan is a form of loan that does not require collateral. Accordingly, borrowers only need to prove their legal status and monthly income to be able to borrow. A loan account will be approved based on the borrower's creditworthiness and income level and credit history.

2. Features of unsecured consumer loans at Shinhan Finance

Unlike other budgets and unsecured consumer lending organizations, Shinhan Finance applies the following program:

• The minimum loan interest rate is 18% and the maximum is 35% for one year based on the reducing balance.
• The loan is 12 times the monthly income and the maximum is 300 million. The purpose of using this unsecured consumer loan is to consume and serve life.
• Minimum loan period is 12 months, maximum is 48 months. Customers can flexibly choose a short or long loan period.
• Disbursement within 48 hours after the application is approved.

3. Benefits of unsecured consumer loans at Shinhan Finance

Shinhan Finance always has many different benefits that unsecured borrowers should not ignore.

• Unsecured consumer loan interest rate is only from 18%/year. Thus, compared with other banks, this is a relatively cheap price, suitable for the payment conditions of people with low and middle incomes.
• Unsecured consumer loan limit up to 300 million. With this money, borrowers can accomplish many of their goals.
• Shinhan Finance applies many short-term and long-term payment options, and even has a payment option of up to 48 months. With that time, you can completely prepare a budget to pay for the loan easily.

4. How to calculate unsecured consumer loan interest rate

Interest rates on unsecured consumer loans are about 18%/year. So, depending on how much you borrow, the interest rate will be different.

Principles of calculating interest rates on unsecured consumer loans

• Interest will be calculated at the rate of %/Year, 1 year 365 days.
• Interest calculation period is determined from the time of disbursement of the credit extension until the end of the day immediately preceding the date of payment of the credit extension. The time to determine the balance to calculate interest is at the end of the day in the interest calculation period.

Formula for calculating interest rate

Interest amount = [∑(Actual balance x number of days to maintain actual balance x Interest rate)]: 365

To make it easier for you to imagine, we give two examples below:

• For example, if you need to borrow VND 10,000,000 with an interest rate of 18% within 1 year, the estimated monthly payment interest is about VND 916,800. If you choose the loan period within 48 months, the interest rate for monthly payment is about 293,750 VND.
• Another example, you need to borrow VND 100,000,000 with an interest rate of 18% within 1 year, the estimated monthly payment interest is about VND 9,167,999. If you choose the loan period within 48 months, the interest rate for monthly payment is about 2,937,500 VND. With this way of calculating unsecured consumer loan interest rate, it is completely acceptable.

5. Conditions for unsecured consumer loans at Shinhan Finance

Compared to other consumer lenders, Shinhan Finance's conditions are relatively simple. Specifically, the borrower only needs to ensure the following conditions:

• Female from 21 to 55 years old and male from 21 to 58 years old who are working for salary.
• Self-employed from 21 to 65 years old.
• People who earn at least 4 million a month.
• People living in Hanoi, Ho Chi Minh City and other provinces in Vietnam such as: Hung Yen, Vinh Phuc, Bac Giang, Thai Nguyen, Khanh Hoa, Dong Nai, Ba Ria Vung Tau, Ben Tre, Tien Giang, Can Tho, An Giang, Vinh Long, Ninh Binh, Hoa Binh, Quang Ninh, Phu Tho,…

6. Can you pay off your loan early?

When applying for an unsecured consumer loan at Shinhan Finance, you are allowed to pay off the loan before the due date with an extremely simple process as follows:

• Step 1: Just call Shinhan Finance's door switchboard and clearly state the need to pay off the loan before the due date.
• Step 2: The call center staff will guide you through the payment procedures. Depending on each specific case, the interest you have to pay for early settlement will be different.

Above is how to calculate unsecured consumer loan interest at Shinhan Finance. If you have any doubts or need to use the service of opening credit cards, unsecured consumer loans, please contact us for more complete advice.