Lenders usually set specific requirements that every applicant must meet before loan applications are approved. The same applies to a $7,000 personal loan. Lenders want to be sure you can repay the loan plus interest rates within the set period, usually between a year and 7 years. So, how much are monthly payments on a $7k personal loan? Check out the loan repayment details explained below.
About the Monthly Payment on a $7000 Personal Loans
After reviewing your personal and financial information, the lender determines the repayment terms and monthly payments on personal loans. Interest rates, creditworthiness, APRs, the principal amount, and your monthly income are some of the main factors considered by lenders before setting up the monthly repayment terms.
Typically, the monthly repayments for a $7k personal loan could be $96 - $703, subject to the loan repayment period. The table below is a simple analysis of the $7k personal loan monthly repayment assuming the APR is 15%.
| Repayment Period | APR | Monthly Payment | Total Interest |
| 12 months | 15% | $632 | $582 |
| 24 months | 15% | $339 | $1,146 |
| 36 months | 15% | $243 | $1,736 |
| 48 months | 15% | $195 | $2,351 |
| 60 months | 15% | $167 | $2,992 |
| 72 months | 15% | $148 | $3,657 |
From the above table example, the longer the $7,000 loan repayment terms, the smaller the monthly repayment amount. For instance, if the lender allows you to repay the $7k personal loan for 72 months, the monthly repayments will be $148 only.
However, you will end up paying a larger cumulative interest rate of up to $3,657. Repaying your $7,000 loan within a year could be a good idea and saves you on interest rates. But, you must be ready to pay higher monthly amounts of about $632.
Conclusion
A $7,000 personal loan term depends on the choice of lender. Some lenders may allow you to repay the loan for a more extended repayment period than others. Furthermore, if you're looking for the best credit deals, work on boosting your credit scores.
Bad credit borrowers pay higher APRs, making personal loans expensive in the long run. Weigh out your ability to repay the loan within the shortest time possible before applying for a $7k personal loan.