Mango Credit Interest Rates | Mango Credit & Mango Mortgages
Bridging Loan: 1% p.m.
Business Loan: 1% p.m.
Disclaimer: These Mango Credit Interest Rates are accurate at the time of publishing in May 2021 and are subject to change. Please contact us to confirm the most accurate interest rates at the time of your application. The information contained on this webpage is general in nature and does not take into account your personal circumstances.
What Is an Interest Rate?
An interest rate is an amount charged by lenders on the loans that they offer. Technically, it is a percentage charged on the loan's principal or the borrowed amount. The interest rate dramatically affects the overall cost of borrowing money. This is why shopping for loans with lower interest rates has become a common practice for many borrowers.
Interest rates are also regarded as either the cost when borrowing money or the reward when saving money. Banks provide loans or allow borrowers to borrow money from them in exchange for interest payments. On the other hand, depositors deposit their money with banks, and banks then use the deposits for various purposes, including to fund other loans. As a reward for depositing money with a bank, the bank pays the depositor interest for the money they saved. The interest rates obtained by banks from loans are higher compared to the amount the banks pay to the depositor. The difference becomes one of the bank's sources of profit.
Mango Credit & Mango Mortgages Interest Rates
The interest rate is an essential component of a loan. The rates are influenced by many different factors like the borrower's credit score, the capacity to make interest payments, and the lender's willingness to take on the perceived risks when they offer loans. Most lenders only cater for borrowers with good credit. Bad credit holders and first-time loan applicants have limited options on where to secure financing. Due to this, many bad credit holders are having a hard time getting out of the bind. Also, many first-time borrowers end up getting loans with costly interest rates.
Mango Credit & Mango Mortgages are a leading private, non-bank lender in Australia. Over the years, we have helped thousands of Australian businesses and individuals secure the loans that they need, and in many circumstances, where traditional lenders were not prepared to lend. It is also known for providing loans that help bad credit holders get out of the bind and have their tainted credit reputations fixed. Mango Credit & Mango Mortgages are known for assisting borrowers in obtaining what they need through the following.
Positive Impact
Mango Credit & Mango Mortgages has been a champion in the financial industry in Australia. For years, Mango Credit & Mango Mortgages has proven its commitment to positively impacting its clients' business and personal lives. Mango Credit & Mango Mortgages did this by providing financing that comes with competitive interest rates with fast and easy access to short term loans, with quick approvals and settlements.
Transparent Loans
Throughout its existence, it is always at the forefront of providing transparent loans to the public. It has been Mango Credit & Mango Mortgages mission to provide transparency in all aspects of our dealings. Mango Credit & Mango Mortgages is made up of a team of financial experts trained to ensure that every borrower is informed of the crucial loan details to ensure that they are comfortable and, more importantly, aware of the journey ahead.
Suitable Financing Options
At Mango Credit & Mango Mortgages, we conduct an assessment of each loan applicant's application. This enables us to provide every client with the most suitable financing options to suit their needs. These options come with loan requirements that the client should be able to accommodate based on their circumstances. As a result, loan defaults and delayed payments are significantly prevented. But more importantly, access to the much-needed cash loan is made available quickly.
Fairness
Fairness is among the essential core values that Mango Credit & Mango Mortgages lives up to. Since day one, Mango Credit & Mango Mortgages has been responsible for providing financing options to clients designed to help them meet their needs. In exchange for these, Mango Credit & Mango Mortgages' interest rates are calculated with fairness in mind. This also means that the other fees attached to each loan are fair and reasonable, and all of these fees are disclosed to our clients upfront.
Willing to help
Mango Credit & Mango Mortgages does not only provide loans with competitive interest rates to its clients. It is also responsible for providing opportunities to those who need financing to further their business or personal goals. For many years, Mango Credit & Mango Mortgages continues to cater for various financing needs. We know it can be hard to obtain finance from other lenders, but we are happy to assess your application regardless if you have a good or bad credit history.
Don't fall for lenders with offers that are too good to be true.
Let Mango Credit & Mortgages provide you with loans designed to best suit your needs. Call us at (02) 9555 7073 now or fill out the form to submit your enquiry.
When Are Interest Rates Applied?
Interest rates apply to most lending or borrowing transactions. Individuals borrow money to purchase homes, fund projects, launch or fund businesses, or pay for college tuition. Businesses take loans to fund capital projects and expand their operations by purchasing fixed and long-term assets such as land, buildings, and machinery. Borrowed money is repaid either in a lump sum by a pre-determined date or in periodic installments.
The money to be repaid is usually more than the borrowed amount since lenders require compensation for the loss of use of the money during the loan period. The lender could have invested the funds during that period instead of providing a loan, which would have generated income from the asset. The difference between the total repayment sum and the original loan is the interest charged. The interest charged is applied to the principal amount.
For example, if an individual takes out a $300,000 mortgage from the bank and the loan agreement stipulates that the interest rate on the loan is 15%, this means that the borrower will have to pay the bank the original loan amount of $300,000 + (15% x $300,000) = $300,000 + $45,000 = $345,000.
If a company secures a $1.5 million loan from a lending institution that charges it 12%, the company must repay the principal $1.5 million + (12% x $1.5 million) = $1.5 million + $180,000 = $1.68 million.
Compound Interest Rate
Some lenders prefer the compound interest method, which means that the borrower pays even more in interest. Compound interest also called interest on interest, is applied to the principal but also on the accumulated interest of previous periods. The bank assumes that at the end of the first year the borrower owes the principal plus interest for that year. The bank also assumes that at the end of the second year, the borrower owes the principal plus the interest for the first year plus the interest on interest for the first year.
The interest owed when compounding is higher than the interest owed using the simple interest method. The interest is charged monthly on the principal including accrued interest from the previous months. For shorter time frames, the calculation of interest will be similar for both methods. As the lending time increases, however, the disparity between the two types of interest calculations grows.
Compound interest=p×[(1+interest rate)n−1]
where:
p=principal
n=number of compounding periods
When an entity saves money using a savings account, compound interest is favorable. The interest earned on these accounts is compounded and is compensation to the account holder for allowing the bank to use the deposited funds. If a business deposits $500,000 into a high-yield savings account, the bank can take $300,000 of these funds to use as a mortgage loan.
To compensate the business, the bank pays 6% interest into the account annually. So, while the bank is taking 15% from the borrower, it is giving 6% to the business account holder, or the bank's lender, netting it 9% in interest. In effect, savers lend the bank money, which, in turn, provides funds to borrowers in return for interest.
APR vs. APY
Interest rates on consumer loans are typically quoted as the annual percentage rate (APR). This is the rate of return that lenders demand for the ability to borrow their money. For example, the interest rate on credit cards is quoted as an APR. In our example above, 15% is the APR for the mortgagor or borrower. The APR does not consider compounded interest for the year.
The annual percentage yield (APY) is the interest rate that is earned at a bank or credit union from a savings account or certificate of deposit (CD). This interest rate takes compounding into account.
https://www.investopedia.com/terms/i/interestrate.asp