The interest is fixed with a personal loan . You know in advance what amount you will pay. The total costs depend on the term of the loan and the interest. When you opt for a shorter term, you pay less in total, purely because you pay interest over a shorter period.
You borrow an amount of € 25,000 at an interest rate of 4.1%. Below is an overview of the costs for different maturities:
| Duration|| Monthly costs|| Total costs (interest + repayment)|
| 48 months|| € 564.76|| € 27,108|
| 60 months|| € 460.69|| € 27,642|
| 72 months|| € 391.41|| € 28,182|
The monthly amount of a revolving credit is a percentage of the credit limit that you have agreed with the bank. This usually varies between 1% and 2% of the loan amount. With a revolving credit, the interest is variable , so the interest can rise or fall during the term.
You borrow € 25,000 with a repayment percentage of 1%. The amount that you pay each month is € 250.
If the interest rate is 4.5%, you pay € 93.75 interest in the first month (namely: 25,000 x 4.5% / 12 months). Your monthly installment is set at € 250. This means that you pay € 156.25 in repayment and € 93.75 in interest. After this first month, the amount of your loan amount is still € 24,843.75 (namely: 25,000 - 156.25).
The lower the repayment percentage that you choose, the lower the monthly amount. But that also means that your term is longer and therefore you ultimately pay interest over a longer period. In total, this will cost you more than if you opt for a higher repayment percentage. The higher the monthly amount, the higher the repayment percentage and the shorter the term, the lower the costs.