The function of paying for treasures is the choice of many, but if, for some reason, it is not possible to settle them in full and immediately, the choice is made to divide them. So is the fee and interest on the fee to spend in instalments equal? Let's find out exactly。

Is it interest to spend amortization fee

First, the payment of amortization fee is not interest. While a fee would arise from amortization, this and interest were not concepts. The main difference between fees and interest lies in the way they are calculated. The instalment fee is calculated on the basis of the number of instalments you have chosen, while interest accrues on a daily basis。

As an example, assuming that you choose to pay in advance after amortization, in this case the amount of the service charge that you need to pay for that month will not be reduced, as it is calculated in instalments. For example, if you pay the loan once in the third month after the split, you will have to pay the fees for three months。

However, interest is more flexible. It changes because you choose the date of early repayment. It is sufficient to calculate interest between the date of your early payment and the last payment。

It is important to note that the phasing fees and interest charges that are spent differ. The fee is charged only after you have chosen to spend it, and interest on it is charged when you have chosen the minimum or overdue payment. While both costs would have to be covered at the time of repayment, there was a substantive difference between them。

Finally, it is worth mentioning that early payment is a very effective money-saving technique. Advance repayments, whether in instalments or interest, could save some of the expenses. More importantly, the rate of payment of the fee in instalments is usually lower than the minimum repayment interest and the interest rate on loans with overdue interest。