What is the process of amortization?
Amortization is the process of repaying a car loan through fixed monthly installments over a set period, with each payment covering both the principal (borrowed amount) and interest.
This structured repayment makes budgeting easier, ensures a gradual and manageable payback of the loan, and helps predict total loan costs.
Choosing a shorter loan term reduces overall interest but increases monthly payments, while a longer term lowers instalments but results in higher interest costs.
Gowago allows an early repayment of the loan to reduce the credit faster, ensuring freedom and flexibility in the car ownership.