Financial planning is critical when taking out a $6000 personal loan. The first step in taking out a loan is knowing how much you will be required to pay for the loan every month and where you get the funds. However, many applicants are unaware they can get the $6k monthly payment estimates in advance.
Luckily, you are in the right place; this article highlights key factors to consider when planning your monthly repayments for your $6000 personal loan.
About the Monthly Payment on $6K Personal Loans
Lenders calculate the monthly loan repayments based on the financial and personal details you provide when applying for a loan. Thus, your creditworthiness will determine your Annual Percentage Rate (APR).
This APR, alongside the loan repayment period, calculates your monthly loan payment. For instance, if your personal loan is charged an APR of 36% and you want to pay it off within a year, the monthly payment will be about $603.
If you will pay the same loan amount for 7 years at an APR of 4% you will be expected to pay $82 per month. The table below shows how a $6000 personal loan monthly payment is calculated, assuming the APR is 15%.
$6,000 Personal Loan Monthly Payment Estimation Table.
| Repayment Duration | APR | Monthly Repayment | Total Interest |
| 12 months | 15% | $542 | $499 |
| 24 months | 15% | $291 | $982 |
| 36 months | 15% | $208 | $1,488 |
| 48 months | 15% | $167 | $2,015 |
| 60 months | 15% | $143 | $2,564 |
| 72 months | 15% | $127 | $3,135 |
| 84 months | 15% | $116 | $3,726 |
From the analysis above, if your monthly income doesn't allow you to repay $6k within a year, you can lower the monthly payments to at least $116 when you choose to pay back the loan for 84 months. However, you risk paying high-interest rates of up to $3,726 in the long run, which is the equivalent of half of the principal amount. You can save on the interest rates if you manage to clear the $6,000 loan within a year or two.
Conclusion
Now that you understand how the $6,000 personal loan monthly payments are calculated. Work on your creditworthiness and apply for the $6k loan knowing how much is expected from you every month. Your monthly income will guide you in determining the most suitable personal loan repayment plan.