The principal, interest rate, repayment term, and any applicable fees are key components of a loan that a borrower should understand before taking a loan.

Follow us in this article as we explain how they are all related, and together determine the size of a loan and how quickly it can be paid back.

• Principal: The amount of money that is borrowed


• Interest Rate: This is the cost of borrowing, expressed as a percentage of the principal amount. This will be added to the loan amount by the lender and paid over the loan's duration.


• Admin Fees: Additional fees charged by lenders to prepare and process loans. This could include origination fees, application fees, search fees etc.


• Tenor: The period over which the borrower will repay the loan. Borrowers should select a repayment period that will be convenient for them.


• Payment Instalments: The number of times that the borrower will repay the loan


• Monthly Installment: The amount payable every month (or other repayment interval)


• Total Repayable: The Principal loan amount plus total interest amount


• Late Payment Fees: Fees charged by the lender when a borrower fails to make a payment on the due date. This can soon add up if late repayment persists.

Being knowledgeable about loan terms empowers borrowers to choose the most suitable loan for them. At MoniCenta loans, we provide competitive offers from the best lenders on our platform, giving you a variety of options to choose from. To get started all you have to do is SIGNUP.