A situation in which you quickly need a large sum of money can quickly arise: Before the winter, the heating system must be replaced urgently, the washing machine breaks unexpectedly, or a car repair is more expensive than originally thought, or the purchase of a new car is due. To overcome this financial bottleneck, many take out a loan. However, most people want a loan that they can repay as quickly as possible. an elucidation on http://www.buzash.net/bankruptcy-what-does-that-mean/
Faster payment on an installment loan with special repayment
In this case, it is advisable to take out an installment loan with a special repayment. In the case of a special repayment, you have the option of paying higher loan installments monthly, so that the term of the loan is shortened accordingly. It is also possible to shorten the term with special payments or to completely replace the loan. The advantage of a special repayment is that a large part of the interest that would otherwise accrue over the entire term is saved.
Legal regulations for an installment loan with special repayment
The legislator has generally granted the right to special repayments for installment loans in Cream Bank.
However, a few points must be taken into account here: The loan amount must have been paid to a natural person at least six months ago and has a fixed term with no land registry security. If these points apply, the installment loan or parts thereof can be repaid free of charge within three months. Unless otherwise agreed, the lender is generally not allowed to charge any compensation or cancellation fees.
Points to consider with an installment loan with special repayment
However, a bank loan agreement usually contains a clause that regulates the event of termination. Most lenders charge a processing fee, which, depending on the loan, can be up to 100 USD or 1% of the remaining debt. Some banks also do a pro rata interest offsetting, so that the savings with an early repayment remain minimal.
Before making a special repayment, it should therefore be determined whether early repayment is worthwhile, taking into account all costs. Before concluding an installment loan with special repayment, the contract terms should therefore be carefully examined.
If an installment loan with special repayment has been agreed without additional fees, it is possible to use the holiday or Christmas bonus for special payments, so that the installment loan can be paid off within a very short time.