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# What is the difference between loan and advance?

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The main difference between Loan and Advance : the interest component. 2. Both Loan and Advance will be repaid in installments for example: monthly installments of equal to aof the mountains. 3. In case of Loan, the interest is calculated ( Simple or Compound type interest) and the amount of interest that is retrieved at the end. 4. Example for Move: Mr. X who work in an organization. He took $ 10,000 as a down payment to be paid in 10 monthly installments. Monthly recovery of salary is $1,000 . After 10 months, hi pays the entire amount . 5. Example for Loan: Mr. And took a Loan of $10,000 with a simple interest rate of 12% per year. Monthly payment is $1,000. The accrued Interest is calculated each month on the balance of the principal amount. The recovery of the table is the following. Delivery the Balance of the Accrued Interest of interest 10000 0 1 1000 9000 100 100 2 1000 8000 90 190 3 1000 7000 80 270 4 1000 6000 70 340 5 1000 5000 60 400 6 1000 4000 50 450 7 1000 3000 40 490 8 1000 2000 30 520 9 1000 1000 20 540 10 1000 0 10 550 After 10 monthly installments , the interest portion $550 is remaining. This can be refunded in a period of time. In case of huge loans, the interest amount is recovered in equal installments. The main difference between Loan and Advance : the interest component. 2. Both Loan and Advance will be repaid in installments for example: monthly installments of equal amounts. 3. In case of Loan, the interest is calculated ( Simple or Compound type interest) and the amount of interest that is retrieved at the end. 4. Example for Move: Mr. X who work in an organization. He took $ 10,000 as a down payment to be paid in 10 monthly installments. Monthly recovery of salary is $1,000 . After 10 months, hi pays the entire amount . 5. Example for Loan: Mr. And took a Loan of $10,000 with a simple interest rate of 12% per year. Monthly payment is $1,000. The accrued Interest is calculated each month on the balance of the principal amount. The recovery of the table is the following. Delivery the Balance of the Accrued Interest of interest 10000 0 1 1000 9000 100 100 2 1000 8000 90 190 3 1000 7000 80 270 4 1000 6000 70 340 5 1000 5000 60 400 6 1000 4000 50 450 7 1000 3000 40 490 8 1000 2000 30 520 9 1000 1000 20 540 10 1000 0 10 550 After 10 monthly installments , the interest portion $550 is remaining. This can be refunded in a period of time. In case of huge loans, the interest amount is recovered in equal installments. The main difference between Loan and Advance : the interest component. 2. Both Loan and Advance will be repaid in installments for example: monthly installments of equal amounts. 3. In case of Loan, the interest is calculated ( Simple or Compound type interest) and the amount of interest that is retrieved at the end. 4. Example for Move: Mr. X who work in an organization. He took $ 10,000 as a down payment to be paid in 10 monthly installments. Monthly recovery of salary is $1,000 . After 10 months, hi pays the entire amount . 5. Example for Loan: Mr. And took a Loan of $10,000 with a simple interest rate of 12% per year. Monthly payment is $1,000. The accrued Interest is calculated each month on the balance of the principal amount. The recovery of the table is the following.