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How does a Loan Repayment Schedule look like?

Example: Loan Repayment Schedule for a NGN 800,000 Cash Loan
It is important to understand what costs you face when taking a loan and how the loan repayment schedule looks like. Make sure you understand the different cost factors and highlight the repayment days already in you calendar in advance.

During the application process of your loan, the loan provider should always communicate what mode of loan repayment will be applied and which additional costs will occur. If the loan provider doesn't do this, make sure that you ask for this information by email or on the phone. This is to make sure that there are no misunderstandings and to avoid defaulting on the loan on your part.

Sometimes, loan applicants don't understand how loan repayments should be made over the agreed tenor period. The purpose of this article is to help loan applicants to better understand the loan repayment schedule. The major factors shaping the repayment schedule are the loan tenor, the interest rate, and other costs demanded by the loan provider.

Example: Loan Repayment Schedule for a ₦800,000 Cash Loan

Please be aware that this is just an example of a loan repayment schedule. Loan repayment schedules shown on this site may differ based on the terms and conditions set by the loan providers offering the loans.

In our example a person takes a loan of ₦800,000 to be paid back over a period of 10 months with an loan interest rate of 5% monthly. Additionally the person needs to pay a management fee of 2.50%, which is spread over the 10-month loan tenor.

  • Amount owed: ₦800,000
  • Interest rate: 5% monthly
  • Management fee: 2.50% in total (equals 0.25% monthly)
  • Tenor: 10 months
  • Start of Loan Contract: 01.06.2016
Due Date
Principal
Interest
Management Fee
Monthly Repayment
Principal C/D
1
Jun 30th, 2016
₦80,000
₦40,000
₦2,000
₦122,000
₦1,220,000
2
Jul 31st, 2016
₦80,000
₦40,000
₦2,000
₦122,000
₦1,098,000
3
Aug 31st, 2016
₦80,000
₦40,000
₦2,000
₦122,000
₦976,000
4
Sep 31st, 2016
₦80,000
₦40,000
₦2,000
₦122,000
₦854,000
5
Oct 31st, 2016
₦80,000
₦40,000
₦2,000
₦122,000
₦732,000
6
Nov 31st, 2016
₦80,000
₦40,000
₦2,000
₦122,000
₦610,000
7
Dec 31st, 2016
₦80,000
₦40,000
₦2,000
₦122,000
₦488,000
8
Jan 31st, 2017
₦80,000
₦40,000
₦2,000
₦122,000
₦366,000
9
Feb 28th, 2017
₦80,000
₦40,000
₦2,000
₦122,000
₦244,000
10
Mar 31st, 2017
₦80,000
₦40,000
₦2,000
₦122,000
₦122,000
₦800,000
₦400,000
₦20,000
₦1,220,000
1
Due Date
Principal
Interest
Jun 30th, 2016
₦80,000
₦40,000
Management Fee
Monthly Repayment
Principal C/D
₦2,000
₦122,000
₦1,220,000
2
Due Date
Principal
Interest
Jul 31st, 2016
₦80,000
₦40,000
Management Fee
Monthly Repayment
Principal C/D
₦2,000
₦122,000
₦1,098,000
3
Due Date
Principal
Interest
Aug 31st, 2016
₦80,000
₦40,000
Management Fee
Monthly Repayment
Principal C/D
₦2,000
₦122,000
₦976,000
4
Due Date
Principal
Interest
Sep 31st, 2016
₦80,000
₦40,000
Management Fee
Monthly Repayment
Principal C/D
₦2,000
₦122,000
₦854,000
5
Due Date
Principal
Interest
Oct 31st, 2016
₦80,000
₦40,000
Management Fee
Monthly Repayment
Principal C/D
₦2,000
₦122,000
₦732,000
6
Due Date
Principal
Interest
Nov 31st, 2016
₦80,000
₦40,000
Management Fee
Monthly Repayment
Principal C/D
₦2,000
₦122,000
₦610,000
7
Due Date
Principal
Interest
Dec 31st, 2016
₦80,000
₦40,000
Management Fee
Monthly Repayment
Principal C/D
₦2,000
₦122,000
₦488,000
8
Due Date
Principal
Interest
Jan 31st, 2017
₦80,000
₦40,000
Management Fee
Monthly Repayment
Principal C/D
₦2,000
₦122,000
₦366,000
9
Due Date
Principal
Interest
Feb 28th, 2017
₦80,000
₦40,000
Management Fee
Monthly Repayment
Principal C/D
₦2,000
₦122,000
₦244,000
10
Due Date
Principal
Interest
Mar 31st, 2017
₦80,000
₦40,000
Management Fee
Monthly Repayment
Principal C/D
₦2,000
₦122,000
₦122,000
Total Repayment
Overall Principal
Overall Interest
₦800,000
₦400,000
Overall Management Fee
Overall Repayment
₦20,000
₦1,220,000
In this illustrative example, the total loan repayment amounts to ₦1,220,000 and is the sum of the monthly loan repayments, the monthly interest payments as well as the monthly management fee. So at the end of every month, the loan taker needs to repay ₦122,000 to the loan company based on the repayment type agreed on.

Disclaimer: This is an illustrative example to explain the mathematical logic of repaying a loan. Terms and conditions differ and are set by the loan providers themselves. TopCheck is not a loan provider and does not issue any loans at all.

Example Loan: ₦500,000 Loan amount, 1-12 months duration, 2.83% monthly interest rate, 37.61% max APR, ₦688,050 total value, ₦57,338 max monthly repayment, RenMoney MfB