When a consumer takes out a loan, an eradication plan is agreed. The same applies to loans. Flexibility and adaptability are as important to many customers today as a good interest rate. That is why special repayments are standard on most loans today. The special repayment relates to payments outside the repayment plan agreed upon conclusion of the loan.

Special repayment is not always free of charge

Special repayment is not always free of charge

Whoever lends a loan to a house bank, knows at the signing of the contract how long and how much he has to repay each month to repay the loan. However, you may suddenly have enough resources to replace the loan. Not all borrowers know that an immediate repayment is only possible with this early repayment.

Credit institutions do not expect the loan to be repaid before the end of the term and, when determining the repayment plan, they plan the total loan installment including interest. However, if the borrower wants to make an immediate repayment, the principal bank loses that interest payment, for which the borrower then has to pay an early repayment penalty.

The amount depends essentially on the outstanding loan amount and the term of the loan. However, there are banks that charge no fee so it makes sense to compare different lenders.

The borrower thus has the opportunity to reduce the remaining debt of the existing loan with one or more special repayments.

Unscheduled eradication

Unscheduled eradication

The same applies to loans. Flexibility and adaptability are as important to many of our customers today as a good interest rate. That’s why most repayments today use special repayments. Special repayment loans are cheaper than without them. As a rule, a loan is concluded for a certain duration and amount of the loan.

The existing loan interest rate is used to determine the monthly interest rate to be paid. But it is also an unscheduled loan repayment possible. After that, you pay part of the off-schedule loan. It is therefore a special loan payment. Part of the loan amount will be repaid in a certain amount.

The choice of the two options depends on the respective house bank or the lender. This means that the terms or borrowing costs can usually be reduced by an unscheduled repayment. If you still have funds in addition to the loan, but these are not available on a regular basis (eg 13th salary, inheritance, etc.), the special repayment of the loan can be a useful addition.

In the case of special repayment loans, it is important that the special repayment is specified in the loan agreement. As a rule, this is done in advance, so you should consult with the loan agreement beforehand. For many credit institutions, special repayments are offered as a standard for loans under certain conditions, eg once a year up to a certain amount. For others, this must be regulated separately in the loan agreement.

It is to ask whether a special repayment is possible in principle or whether the house bank exempts them from the beginning. The amount of the special loan should also be clarified in advance. Is only a scheduled special repayment possible, eg up to 10% of the remaining debts once a year? Can the special repayment be made at any time and on any scale?

Some credit institutions also offer a full repayment as special repayment. For a loan with a special payment, it is important that the special repayment costs nothing. The loan agreement should provide that a special repayment of the loan is possible free of charge. He is due for early repayment of a loan for payment. 3. In other words, loan repayments in the form of debt rescheduling are often not necessarily cheaper.

However, a cheap loan with special repayment is highly recommended. For the calculation of special repayment, there are lending calculators. However, it is usually difficult to pin down the impact of special repayment on the loan. Because the special payment does not have to be made. You can also repay the loan as planned if you do not have enough cash.

The loan amount would not be repaid faster in this case. Due to the often variable size of unscheduled repayments, it is difficult to calculate the loan with unscheduled repayments. These are the advantages of a special repayment loan:

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