Repayment on your loan

If you have taken out a loan, you will probably also realize that you pay down the loan unless you have taken out a so-called interest-free loan.

Repayments can come in many different shifts, ranging from repayments on the major bank loans, from eg. home and car loans, but also from the smaller consumer loans. It is important to pay your agreed installments.

If you have a large loan you will pay a lot of expenses for the loan alone and they will not fall unless you pay off on it. The same goes for a so-called quick loan, here the interest rates are higher and your repayments will then form if they are not repaid in good time.

Types of installments

Types of installments

Specifically, a repayment is a payment, of something you owe, most likely in the form of debt. The main rule is that installments are paid per month. per month, but they can also be paid per month. quarterly, semi-annually or annually. This is agreed with the loan provider when the loan is raised.

How is the installment size determined?

The installment size and what you have to repay will be determined by the bank or your loan provider in collaboration with you. The bank makes an assessment of how much you are able to repay, in relation to both your current and expected financial situation. If you have a high income you often have the option of repaying higher repayments, thereby settling your debt faster than if you have a low income. You can compare the size of the installment with its maturity. A long-term loan with repayments is often more expensive than a short-term loan, since interest costs will be incurred for a shorter period.

Calculate your installment


You have the opportunity to see what your repayment will cost / will cost you, using the variables: maturity, benefit, interest and any foundation costs of your loan. At Ophelia we also have a loan calculator that shows how much you have to pay in installments each month. Read more about our loan calculator here. There are also other loan calculators on the web that can calculate your repayments for more extensive loans.

Repayments in relation to loan types

There are different loan types and depending on your type of loan, it is different how often your repayment is to be paid.

Installment Freedom

What does interest-free really mean? It is very simple. You have a period on your loan where you do not pay down the installments, but only interest and contributions on your loan.

The general rules about interest-only repayment are that you can have a maximum repayment period for 10 years, unless there are specific rules for your type of loan. Furthermore, your type of loan depends on whether it is a fixed rate or variable loan. Read more about freedom of interest here.