Interest on loans are the main source of income credit cooperative "Agrocredit" from which it covers operating costs and makes allowances. Therefore, interest rates should be sufficient to finance the activities of the cooperative. On the interest rate affects the source involved in the co-op funds: savings, the budgets of different levels, loans of various companies and organizations  veridian credit union .

Interest rates on loans are based on the average, as well as take into account the cost of managing and forming the indivisible funds, the cost of raising resources (interest payments to investors). In addition, the interest rate should take into account the rate of inflation.

At the stage of credit cooperatives cooperatives is largely dependent on the price of the attracted funds borrowed from other organizations, including international. Therefore, the interest rate on loans is primarily determined by the cost of attracted resources.

However, the main purpose is to organize credit cooperative agricultural loans at interest rates below market. However, the rate of co-op installed must provide sufficient income not only to cover the cost of operation of the cooperative, but also to create equity. Equity capital may subsequently become a source of lending and cover losses of the cooperative. With its own capital, the cooperative may reduce the interest rate on loans as equity, as opposed to debt, does not bear the direct costs associated with its use. The main function of equity is to finance low-yielding assets or assets that are not generating income cooperative. During the formation of the cooperative "Agrocredit 'equity is created and only the main activity at the expense of funds, so the interest rates on loans are high.

The magnitude of the effect of interest rate and the time period of the loan. The longer the period for which the loan is taken, the higher the risk of non-repayment of funds and the greater the interest rate. Therefore, the borrower is always beneficial to get a loan just before the implementation of the investment project.

On the interest rate affects the volume of credit operations. The greater the volume of credit operations of the cooperative, the faster increase capital and there are additional reasons for interest rate cuts.

In the process of the cooperative "Agrocredit" loans will be issued under the simple and compound interest. The order of their maturity discussed below.

For simple interest is usually used in the issuance of short-term loans, or when the interest is not attached to the payments, and occasionally paid. The amount that the borrower must pay at maturity, called augmented amounts included and accrued interest. In the case of simple pro ¬ cents accrued amount is determined by the formula:

S = P + I = P + P * n * i + P (1 + ni), where
S - Accrued amount
P - the original amount of the debt,
I - interest for the entire term of the loan,
n - term loans, months, years.
i - interest rate,%;

For example, the agricultural company took a loan in the amount of 200 thousand rubles. The Co-operative "Agrocredit" for the term - two years and a rate of 17% per annum. Necessary to determine the amount of accumulated debt borrowers ¬ ka, which is:

S = P (1 + ni) = 200 (1 + 2 * 0.17) = 268 thousand

Therefore, in two years the borrower must return the cooperative "Agrocredit" 268 thousand
The loan agreement provides for sometimes time-varying interest rates. When pro ¬ prime interest rate debt the borrower cooperative ¬ tivu given by:

S = P (1 + n1i1 + n2i2 + ... + nmim) = P (1 + Σ ntit), where
it - simple interest rate in period t;
n - the length of time at a constant rate, n = Σ nt.

For example, the contract provides the following procedure for the interest calculation: first year - 15%, in each subsequent half-rate increases by 2%. Necessary to determine the amount of the debt of the borrower at the end of the period, when the borrowings cooperative "Agrocredit" in the amount of 100 thousand to 2.5 years  veridian credit union .

S = P (1 + Σntit) = 100 (1 + 1 * 0.15 + 0.5 * 0.17 + 0.5 * 0.19 + 0.5 * 0.21) =
= 143.5 thousand

Hence, the borrower is 2.5 years should return cooperative 143.5 thousand

In the consumer loan interest is often calculated on the entire amount of the loan and added to the principal amount at the moment of the opening credits, which is a rather stringent condition for the debtor.

To repay the debt with interest installments, equal amounts. Accrued amount of debt is given by:

S = P (1 + ni), where
P - the amount of the loan;
n - the term of the loan.
The value of a single payment extinctive (R) is defined as:
R =, where
S - Accrued amount of debt;
m - the number of payments per year.

In this scheme, the actual value of the debt the debt decreases over time, and the real value of the loan exceeds the contractual interest rate. Consider the example of a scheme of lending cooperative "Agrocredit" country farms to purchase breeding stock of 300 tysna two years, the interest rate - 18% per annum with interest payable monthly.

The amount of debt, with interest equal to:
S = P (1 + ni) = 300 (1 +2 * 0.18) = 408 thousand
Monthly payments would amount in this case was:
R === 17 thousand

Create ¬ tion of equity and enhances the long-term lending. At mid-and long-term lending, if no interest is paid at once, and are attached to payments, apply compound interest. In contrast to the simple interest basis for compound interest is growing and the absolute amount of interest charged increases. This process can be as consistent reinvestment of the funds invested under the simple interest for a period of accrual. In this case, the so-called capitalization of interest, ie accession to the amount of accrued interest, which served as the basis for their calculation. By a complicated rate increase, which is determined in the same way as in the calculation of simple interest  veridian credit union .