Taking out personal loans helps you sort out some pending bills, consolidate your debts, or even buy assets with the money. However, how are you planning to pay back the $9,000 loan? Have you planned for the $9k monthly payments? If you can comfortably pay the monthly payments and remain financially stable, you can afford the loan.
Before sending a loan application, calculate the monthly payments and weigh them against your monthly income.
About the Monthly Payment on $9K Personal Loans
Lenders use your credit scores, credit history, and financial details to set the Annual Percentage Rate. Applicants with excellent and good credit scores enjoy favorable APRs. The lower the APR, the lower the loan interest rates and monthly payments. However, the loan duration also determines how much you will be paying for the $9k personal loan each month.
For instance, if you pay back a $9,000 personal loan for a year at an APR of 36%, the monthly payment would be $904. Repaying the same loan amount with an APR rate of 4% for 7 years will pay $123 per month. See an example below on $9k monthly payment calculations; suppose the APR is 15%.
A $9K Personal Loan Monthly Payment Plans
| Repayment Period | APR | Monthly Payment |
Total Interest |
| 12 months | 15% | $812 | $748 |
| 24 months | 15% | $436 | $1,473 |
| 36 months | 15% | $312 | $2,232 |
| 48 months | 15% | $250 | $3,023 |
| 60 months | 15% | $214 | $3,847 |
| 72 months | 15% | $190 | $4,702 |
From the table above, the best way to avoid paying too much interest rates on a $9,000 personal loan is to repay the money within a year. However, the monthly payments will be as high as $812. If you decide to repay the loan for 6 years, you will pay high-interest rates of up to $4,702 which is almost over 50% of the principal amount.
Conclusion
Applicants have the final say in choosing the most favorable $9k personal loan repayment period. If your monthly income allows you to clear the loan within a year, the better. You will save on interest rates. Compare the credit offers from potential lenders to locate the best credit deal.