Financial Terms / loan

# Loans Explained

A loan is a great way to purchase fixed assets, offering flexibility with balloon payments for shorter term loans and fixed payments for longer ones.

## Formula

``Loan Term = Amount of Loan/Monthly Payment``

## How do I calculate the loan?

`Calculating a loan can be a complicated process. Fortunately, using either Sourcetable can help simplify the process and make it easier to determine the loan term and monthly payment. To calculate the loan term, use the following formula: `Loan Term = Amount of Loan/Monthly Payment.` This calculation will help you determine the number of payments you need to make in order to pay off the loan. Once you have the loan term, you can use the same formula to determine the monthly payment. This will give you the amount of money that you need to pay each month in order to pay off the loan.`

## What is a personal loan?

`A personal loan is an unsecured installment loan given as a lump-sum payment. It is typically available from a traditional bank, credit union, or online lender.`

## What are personal loans used for?

`Personal loans are used for many purposes, such as debt consolidation, small businesses, and large purchases.`

## Key Points

How do I calculate loan?
`Loan Term = Amount of Loan/Monthly Payment`