I'm afraid this is a rather basic question but I'm trying to wrap my head around the logistics of my loan. Initially, this was because I wanted to account for the interest but now I just want to know how the loan agreement leads to me making the particular monthly repayments.
So under the loan agreement, I have a loan of £20,000 which I can drawdown in one bulk if they choose. I draw £19,777 on 19.07.18. Interest is 10% per year, compounded on a daily basis. Per the loan agreement, I pay two interest payments on 01.09.18 and 02.09.18 both for £171. After this, the loan and interest on the loan will be repaid in 58 consecutive monthly repayments. It appears that these monthly repayments are for £437.71, which I can't understand.
The loan agreement also states that upon drawdown, a 1% fee shall be paid, in addition to a £23 security fee and a ree for the legal costs of the loan agreement - undisclosed.