QUESTION: How to calculate the real overpayment on a loan?

In order to calculate the real overpayment on a loan, it is not enough to just look at the bank's promotional promises or preliminary calculations in a mobile application. You need to pull up the payment schedule issued along with the agreement and add up absolutely all the amounts that you undertake to pay to the bank for the entire period of the loan agreement. The resulting final amount will be the total volume of funds that will leave your budget for debt servicing.

From the received amount of the total payment, it is necessary to subtract the initial loan amount that you actually received in hand or spent on purchasing goods. The difference between these two indicators will constitute the base overpayment in monetary terms. However, this is not the final figure yet, as banks often include additional expenses in calculations that can significantly change the real picture of the borrower's costs.

Be sure to take into account the cost of additional services, such as voluntary life and health insurance, medical policies, SMS notification, and commissions for transfers or account maintenance. These associated expenses are often written off at the time of loan issuance at the expense of borrowed funds, on which interest is also accrued. Summing up all these elements will allow you to find out the true cost of borrowed money and avoid unpleasant surprises in the repayment process.