Most of the consumer at least once made a loan. Part of them tries to cover the obligation early on. They believe that the repayment of credit will positively affect the interest rate and credit history. Is it worth repayment of the loan and how profitable it is to pay a loan?
When you pay the loan in advance, you violate the payment schedule, and the financial institution will refund the amount back. This is a violation of the bank or any credit company as a delay in credit. Accordingly, additional commission is charged, which is basically 2%. If you pay the loan completely before expiration, you have to pay additional commission. However, you can pay more than a monthly fee to the Loan Servant Account and pay less money at the end of the term. In this case you will not have to pay additional commission.
What commission can be charged by a loan with a foreclosure
The financial company is entitled to impose an additional penalty if the loan is paid in advance of the loan issued by him. This is taken into account in the following cases:
- Within 6 months to 12 months, the loan amount is not exceeding 0,5%
- Up to the end of the contract is withdrawn from 12 to 24 months, not more than 1% of the amount to be paid;
- More than 24 months remaining before the end of the Loan Agreement, the loan is not less than 2% of the amount to be financed.
If you have more money on a monthly deposit in a financial company, as you want to pay the amount in advance, it is necessary to declare it. Since the credit organization is not obliged to cover the credit automatically.
How to reduce your expenses when making a loan
Before getting credit products, read the information about the service. Pay special attention to the contractor because it contains important information about expenses. Before making the decision, calculate how much is the effective interest rate, what is the repayment fee commission. Does the service have additional expenses?
Before you lend the loan in advance, find out whether the financial organization has a repayment fee. You can pay more for the Loan Servant Account and pay less at the end of the term, without paying any extra fees. Knowledge of the product conditions will avoid excessive expenses, you will be able to lend the liability and liabilities in a timely manner. This will create a positive credit history that will simplify you to use the product you are interested in in the future.