Loan interest, fees and total repayment explained

Start with the amount that reaches your account

A useful cost comparison begins with the net amount received, not only the amount shown at the top of an offer. Record every scheduled repayment and identify interest, compulsory charges and any product purchased alongside the credit. Ask whether an optional service can be declined and whether a quoted fee is charged once, monthly or whenever funds are drawn. Two offers with the same instalment can have different durations and total costs.

Separate borrowing charges from optional services

The FCAC explains personal-loan costs and the information borrowers should examine. KOHO’s published terms illustrate why an app-based advance must also be assessed through the conditions of its associated bundle. Use the provider’s actual agreement rather than converting a marketing phrase into an assumed price. Include any charge for the delivery method you intend to use, and distinguish the normal repayment total from additional costs that could arise only if a payment is missed.