Honestly, it's a lot different than what's in the finance books. Banks have an ingenious way of twisting the simplest things.
So I had to help my friend replicate the repayment sheet and calculate the real interest rate she's paying. In the end I saw an awesome template online that put mine to shame.
I modified it slightly because it was perfect already and very beautiful. It will adjust dynamically to the payment period specified. Just open it to see what I'm saying.
The template is from http://www.excely.com/ and the source download link is Loan Calculator
But my modified version (mostly making it show in Naira; you'll be amazed by how well it does that) can be downloaded at Nigerian Loan Repayment Calculator
The only issue is you have to key in the management fee and VAT payment yourself. The way the banks calculated them is not consistent. So I didn't want to lock in any formula for it.
And I hope you won't need to use this. The loan rate I saw for one the banks is 23.99% and with this repayment plan (monthly withdrawal) it's not even good for business use. Any business that can generate enough to service that kind of loan is worth patiently building/growing without the loan.
But if for a valid reason you are considering taking a loan of this type, especially mortgage loans, then this will help you do the maths in less confusing way and show you the sum of all the extra payments (interest, management fee and VAT) you are paying the bank.
Hahahaha I know right!
ReplyDeleteLoans are awesome when you first get them but awful when payback time comes lol.
Anyway, I am ( and have been for a while now) interested in Excel because almost everything that can be done with a document, reports, figures etc are all done with Excel.
I have taken free online courses in Excel 2013 on the support site but it doesn't cover all that there is to know about Excel and I am indeed curious to know more.
I have taken delight in compiling reports at work because of this but it is not challenging enough to try the deeper aspects of Excel. I'm hoping you would be of a little assistance in this respect, sharing insights, tips, tasks and assignments to put to practice all I have learnt and will learn will be nice.
Thanks, looking forward to hearing from you.
Hi Warrevs,
DeleteThanks for your comment! Glad to see that you are fan of Excel too. I try to share all my knowledge on Excel here and, currently, via YouTube videos and webinars. You can subscribe to my YouTube channel for Excel tips you might find useful, https://www.youtube.com/playlist?list=PL0kdLm6FekrNA7uC65nmsiuIfGZcm-ATP and you can join my webinar list to be aware of every webinar I am doing. There will be one next month on Power BI. Here is the sign up link, http://eepurl.com/bnEIy9
You can also have small short term loans online. But you will need to be careful since there are fake websites available. Though I was lucky to find an online page that helps people search for lenders to get loans.
ReplyDelete