Finest Details for the Perfect Loan Process

Finest Details for the Perfect Loan Process

The lender or credit intermediary is obliged to provide in advance the terms of the contract and information for comparing the different offers the so-called pre-contractual information. You should not neglect the general terms in the contract. They contain information on interest rates, fees and early repayment.

One of the most important things is that you have the right to withdraw within 14 days of signing the contract. You do not need to give a reason for your decision and do not owe any fees for it, except for the interest on the days on which the funds were available. You can visit for the best options.

The risks?

The customer may remain misled as to which bank provides the best market conditions. Sometimes the lender does not specify some of the mandatory costs for the client and artificially lowers the annual percentage cost of the offer. Therefore, you must be sure that the lender has not saved, for example, theinsurancepremium that is at the expense of the client. The risks are often accompanied by a lack of understanding of some of the conditions. To avoid them, do not rush to sign a contract, but ask if something is not clear.

Surprises with fast loans

For loans from non-banking institutions, the surprises are associated with fees, interest and late payment penalties. The surprises of the fees are the requirement for the client to provide a guarantor, the credit to be approved quickly (speed fee), as well as the provision of additional services related to the payment of a considerable amount of fee, which the lender finances, but the client then pays.

It is especially important that the fees for the start of the payment will start. Often, these are higher and higher, and the debt owes may be significant to magnify. Penalties for delay are a certain percentage of the amount due.

Indicators when choosing a bank or other financial institution

The annual percentage rate of charge is the indicator that will best guide you on the cost of a bank loan. The comparison should be made with the same parameters – loan size and repayment period. However, an APR cannot be an objective indicator to guide consumers in loans provided by non-banking institutions or so-called quick loans.

For example, for small loans and short repayments, the APR is often shocking in size simply because the indicator is calculated on an annual basis. But for the time being, APR is the only indicator that can give a real idea of ​​the cost of fast credit. Currently, the APR ceiling is 50%, which means that if you take out a loan of $ 250 and pay it off for a month, the price (interest and fees) on it should not be more than 8-9 $.

Market indices: it’s important to know

Interest-forming indices are market-based, independently-priced, transparent and easily applicable. The values ​​of these market indices are observable over time and, to some extent, are predictable for some future period.

Edward Powell