How is the Amortization Schedule Calculated?

Recently we have received many inquiries as to how is the amortization schedule calculated. We understand that there must be questions that you have and our FAQ page is not providing enough information, so we hope the following would help answer some.

How it works 

As an example, let’s take a loan with term 90 days and payment frequency every 30 days (3 payments), the loan amount is 5.00000000 BTC.

Let’s say you choose 1% interest rate for the period. Which means  0.01/3= 0.0033333333% for a month. We use the equal payment method which means that each payment includes the accrued interest on the unpaid balance, plus some principal.

This is how the equal payments are calculated:

formula

In this case, each payment will be 1.67779009 BTC. A portion of that payment covers the interest you owe, and a portion of the payment pays down your principal. When subtracting the principal from the loan amount, you are able see how much principal is left to be paid. The interest on the next payment is calculated on the remaining unpaid balance of the principal.

To get a better grasp of this concept, let’s see the numbers:

investments

I payment: We’ve already showed you the payment amount will be 1.67779009 BTC.   The interest for the first payment is 0.00333333333 * 5.00000000 BTC =  0.01666666666. The principal amount of the payment is 1.67779009 – 0.01666666666  = 1.66112344 BTC .  In this case,  the BLC fee is calculated by taking 1%  of the principal amount of the payment.  The unpaid balance of the principal is 3.33887656 BTC.

II payment: Again multiplying the principle balance owed by the periodic interest rate to get the interest for this payment 0.00333333333 * (5.00000000 – 1.66112344) = 0.01112958 BTC.  (5.00000000 – 1.66112344) is the unpaid balance of the loan amount.  The principal amount of the payment is  1.67779009 – 0.01112958 = 1.66666051

III payment: The third payment is identical to the previous ones.

0.00333333333 * (5.00000000 – 1.66112344 – 1.66666051) = 0.00557405 (Periodic rate * the unpaid balance ). The principal amount of the payment is  1.67221605 BTC.

Please remember, the rate you choose specifies how much interest to charge from the principal, it doesn’t set what you get in the end.

INTEREST

We have set 1% interest rate, but when we calculate it we will see that the gain interest is 0.6674056%.  This difference is due to the fact the interest on each subsequent payment is calculated on the reduced principal.

We hope the information above provides you with sufficient explanation and encourage all members to contact us if any further questions or concerns occur. The BitLendingClub Team will be glad to help you. Meanwhile, we are continuing to work hard to spread the word to more and more investors and borrowers that they can get a better deal at BitLendinhgClub.

Best regards,

The BitLendingClub Team

https://bitlendingclub.com/

 

 

Things look a little different around here today!

We have a motto that guides our work here at BitLendingClub: listen hard and change fast. We’ve been doing a lot of both in the past few weeks.

You might wonder what is new so we’ll give you some details on what has been upgraded.

A fresh design fresh design

Let’s start with the newly redesigned user’s profile page:

We’re happy to announce that the user’s profile page has been completely redesigned with a new, improved look (similar to the loan page), as well as a new layout that makes it even easier for you to find the information you’re looking for.

Let’s take a quick tour of the new profile page: you are still able to see the profile summary, loan listings and investments but they are now in different tabs. On the left bottom of the page you can find the identity score of every user.

REDESIGN PAGE

Social and Trusted connections

This of the most exciting features we’re introducing.

trusted

We have received many emails and inquiries regarding social and trusted connections.

Here’s some good news. You are now able to activate the connections. Feel free to go to the Verification Center, then click the tab Social websites or Trusted websites and connect your account. You are able to connect your profile to Facebook, LinkedIn and Google+. 

 social

Trusted websites are PayPal, Ebay, Amazon and localbitcoins.

trusted connections

You’re even able to see the account age and feedback score,friends or followers.

Trsted

Improved the Verification Center

Dashboard

Updates in the ID verification process

There are some additional requirements in the ID verification process. You will also be required to upload the front and back of your ID or Driver’s License and a clear picture of you holding the document next to your face.

id VERIFICATION

Please go to the Verfication Center and update your documents for ID verification. In order to be verified you must upload valid ID, Driver’s license or Passport with the following information: Name, Date of Birth, Expiration Date, Issued Date and Document number. This information must be clearly viewable. 

Example:  article-1204641-05E4CA17000005DC-521_468x310

The Income verification form is redesigned but there are no new requirements.

Income verification

 Improved investments section

We have split the investments section of the loan into accepted and rejected offers.  You are now able to see the investments which are going to be automatically accepted and automatically rejected into two separate tables. 

Investment section

 New loan types

We add the following loan types to the table:

  • Day Trading
  • LocalBitcoins Trading
  • Investing
  • Lending
  • Purchasing Goods
  • Capital for Business

Our new forum

Maybe you’ve noticed already or maybe you haven’t…  Our forum is now live!  You may access the new forum here or you can find the link to the forum in the site footer.

Forum

If you’re a new user, this is a great place to find answers to basic questions about using our services or just have a discussion. Please do not hesitate to ask your questions in the forum and we are happy to be of help.

Forum BLC

We hope you like what you see! As always, please don’t hesitate to contact a member of our team if you have any questions.