Price Table (Price System)
Under the Price Table (Tabela Price) system, installments are constant — the same amount throughout the contract, assuming a fixed rate. This makes budgeting easier and, in general, raises the amount banks approve, since the first payment is lower than…
Explanation
Under the Price Table (Tabela Price) system, installments are constant — the same amount throughout the contract, assuming a fixed rate. This makes budgeting easier and, in general, raises the amount banks approve, since the first payment is lower than under the SAC system for the same principal and term.
The downside is total cost: since the outstanding balance falls more slowly at the start, total interest paid over the life of the loan exceeds that of the SAC system. In long-term contracts indexed to the IPCA or TR, this effect compounds.