When signing the contract with the lender, it is important to set a date for repayment. Check if you can pay the loan back before the deadline.
On the example of mortgages, the question often arises as to whether early repayment is possible. As we know, early repayment is not always profitable. You need to pay close attention to a few details, especially the relevant provisions in the contract with the lender. In the case of online loans, is it profitable to pay back the financial liability earlier?
Can I pay my loan back in advance?
As for the early repayment of the loan, it is possible to accelerate the payment depending on the contract with the bank received. Usually, however, this is not a one-time payment of the rest of the loan, so even if we win at Lotto, we must be patient. Banks allow for additional monthly repayment or set an annual limit on the overpayment of installments on our part. For example, taking a loan for $ 200,000, in a given calendar year I can make a payment of up to 10% of the amount of the loan granted without any fees. As a result, in addition to the loan installments specified in the schedule, I can reduce the amount to be repaid by $ 20,000 a year. Acceleration of loan repayment can be done once for a year or monthly up to the amount specified above.
I have enough money to complete my loan repayment
One can only congratulate such a state of affairs. And how does this situation apply to early repayment of the loan and interest? Of course, we can repay our sample $ 200,000 loan once, but then we have to take into account considerable interest. Let’s stick to an established example, i.e. up to 10% of the interest-free loan amount, i.e. $ 20,000 per year. If you exceed the repayment of $ 20,000 and, for example, want to give the bank an additional $ 30,000 in a given year, you will pay a 3% commission on the total amount (conditions adequate for the given agreement with the bank; you must check the details of your agreement). In this case, this will cost you an additional $ 900. One should know that, unfortunately, most banks do not separate commissions from the surplus from the allowable commission-free amounts, i.e. in our example $ 20,000. We pay the commission from the sum given previously. We must therefore carefully analyze whether it will be profitable for us to pay back the loan prematurely.
What about online loans?
What is the relative situation with online loans? Can we also repay them early? At Captain Vere, the customer can repay the loan earlier without having to incur any additional costs. However, you must first contact our Customer Service Center to confirm the exact amount. However, not every lender allows you to repay your financial liability earlier. Captain Vere provides such a service because there are situations when the borrower’s financial standing improves significantly. A client who is thinking about taking a loan to build a house, for example, would like to remain without any current debts, which the bank will also look favorably on. If, in addition, all earlier installments were paid on time, we will gain a positive credit history in BIK.
How to choose
As we emphasized earlier, Rakomat enables faster repayment of the loan. However, we are aware that you can try to get a loan from other companies. If we are clients who anticipate that they may have sufficient funds to cover the entire cost of a financial liability once, it is worth looking for offers that allow faster repayment. How to do it? Most companies providing long-term installment loans via the Internet have a “Questions and Answers” section on their websites, which contain frequently asked questions. After choosing a key issue for us, in brief words we will get the answer. There, we can find information whether the company selected by us gives the possibility of early repayment of the loan. If the lender’s website does not have information about the early repayment, nothing prevents you from dispelling our doubts by calling the Customer Service Office. The lender’s consultant is required to provide us with sufficient information about the terms of the contract.
Look for the right offer
Facilitating the search for companies providing online loans with the possibility of early repayment will be loan comparators and various types of offer aggregators presenting rankings of lenders. Usually, on comparison websites, we can quickly check which company has an offer with the service we require. In addition, various types of rankings and offers as well as blog entries on specific topics appear on this type of website. So you can find articles exhausting a specific topic or confront our assumptions with the opinions of customers who used the service. However, before we are tempted by great promotions of both bank loans and installment loans, let’s check twice what conditions the provider of financial assistance sets. Just spend a few more minutes searching for an offer to save yourself later unnecessary disappointments.