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Post by rimvydukas on May 28, 2018 6:15:52 GMT
Hi,
Does anyone know how exactly Mintos calculates interest for short term loans? I have a bad feeling, that they are slightly cheating with this:/
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fric
Member of DD Central
Posts: 199 
Likes: 79
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Post by fric on May 28, 2018 10:14:19 GMT
The short answer is - you are getting paid what the loan originator is willing to pay you. Loan originataors are keeping the lion's share of the interest they actually receive from their customers.
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Post by rimvydukas on May 28, 2018 15:57:39 GMT
The short answer is - you are getting paid what the loan originator is willing to pay you. Loan originataors are keeping the lion's share of the interest they actually receive from their customers. I’m not talking about loan originator and what it is paying me. I’m talking about how is the my earned interest calculated. I’ll bring simple example: 10 euros loan with 14 percent interest rate. Was issued on 04.28, was listed on Mintos on 04.28, was purchased on 04.28 and was finished on 05.26. What do you guys think, according to which term (in days) my interest be calculated?
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Post by falconet on May 29, 2018 20:18:06 GMT
The number of days that passed since you purchased the loan until it was paid.
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Post by rimvydukas on May 30, 2018 3:15:49 GMT
The number of days that passed since you purchased the loan until it was paid. So according to my mentioned days - what is exact number of days? 
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Post by southseacompany on May 30, 2018 4:43:05 GMT
If Mintos calculates in the customary way, i.e. interest accrues on the commencement date but not on the repayment date, then in your example you should get 10.888... cents of interest, which is 14% p.a. over a period of 28/360ths of a year.
Are you getting a different amount? By how much?
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Post by rimvydukas on Jun 1, 2018 15:25:55 GMT
If Mintos calculates in the customary way, i.e. interest accrues on the commencement date but not on the repayment date, then in your example you should get 10.888... cents of interest, which is 14% p.a. over a period of 28/360ths of a year. Are you getting a different amount? By how much? It seems like I had false alarm, also Mintos had a glitch during weekend I noticed possible problem. But, it seems that they are counting everything quite correct
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Post by kert on Jun 29, 2018 19:20:42 GMT
If Mintos calculates in the customary way, i.e. interest accrues on the commencement date but not on the repayment date, then in your example you should get 10.888... cents of interest, which is 14% p.a. over a period of 28/360ths of a year. Are you getting a different amount? By how much? Can you give me the exact formula how to calculate the interest amount?
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Post by southseacompany on Jun 30, 2018 7:09:51 GMT
Can you give me the exact formula how to calculate the interest amount? It is simply the annual interest (i*P, where i is interest and P is principal, 0.14 * 10 in this case) multiplied by the duration (28 days in this case) expressed as a fraction of a year. The common convention is to use 360 days as the length of a year, even though it's over 5.2 days short of a solar year. This is a simple case since there are no interim repayments in this example.
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