The credit system is somewhat more realistic thanks to this update. The normal game credits will be disabled, however. A farm's loan balance will be moved to the new system if it still exists.
Annuity loans are available under this arrangement. This is accomplished by concluding a loan with a set amount, length, and interest rate. The monthly amount, which is deducted at the end of each month, is determined by this.
The maximum loan amount is determined by the current sales value of your cars, fields (60%), cash, and any outstanding debts since the bank demands collateral in this case.
The borrowing rate may increase, decrease, or remain constant each month to make this something more realistic. When the loan is taken out, this makes it much more important. But, under the options, you can easily switch this variable loan interest rate to a fixed loan interest rate.
The credit system may also be customized to suit individual tastes thanks to a variety of configuration choices.
What is the process for an annuity loan? This is a succinct explanation:
Annuities, monthly installments, and loan interest rates are all components of an annuity loan. The payback amount and the interest amount make up this annuity. Multiplying the loan interest rate by the remaining loan balance yields the interest amount. As a consequence, the payback amount continues to rise while the interest amount continues to decline.

Thanks to Chissel