If you want to take out a loan, specify the amount you need. This amount is the net loan or net loan amount for most banks. The net loan amount is paid by the bank upon successful application to your account. He is not to be confused with the total amount. This includes all the costs that arise from your loan and is the sum that you have to pay back to the bank. In addition, in some variants, there is also a gross loan amount that does not correspond to the total amount.
Gross loan amount or net loan amount?
The net loan amount will be paid to your account. The gross loan amount is above the net amount. It contains other possible costs that may arise, for example, through a residual debt insurance. For example, if you want to take out a loan of 15,000 euros and also take out a residual debt insurance with a premium of 800 euros, your net loan amount is 15,000 euros and your gross loan amount is 15,800 euros. The bank always calculates the interest payable on the gross loan amount.
In addition, the total amount also includes all interest that you must pay over the term of the loan and thus quantifies the total expenditure that you pay to the bank over the entire term of the contract.
Loans with incomplete payout
Most banks and banks pay the full loan amount when you apply for a loan. In rare cases, however, there are loans that are not paid out in full. The payout is then proportionally with a certain percentage. For example, if you need a loan totaling $ 20,000 and you choose a loan agreement with a payout of 92% of the desired amount, the actual loan amount is just under $ 21,740.
If you also take out a residual insurance with a premium of € 1,200, the various amounts will look like this:
- Payout amount: 20,000 euros
- Net loan amount: 21,740 euros
- Gross loan amount: 22,940 euros
The total amount depends on the interest rate and the duration of the contract.