A 5% Monthly Loan Rate Can Cost About 60% a Year
I work in credit in Nigeria, and I often see people compare loan offers using rates quoted over different periods. A 5% monthly interest rate is roughly 60% over 12 months before extra fees. That can make a loan advertised with a small monthly figure far more expensive than it first appears. I now convert every offer to the same time frame before deciding. Multiply the monthly rate by 12 for a quick annual estimate, add all charges, then compare the total amount in naira. Have you ever taken a loan that ended up costing far more than the advertised rate suggested?
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