Advice on special repayment of loans.

A special repayment is the unscheduled payment of a sum that is in any case higher than the agreed loan installment to be repaid.  Early repayment is not time-dependent and can be done at any time during the loan period. Such repayment also makes sense if, for example, a larger tax refund or even an inheritance is in the pipeline, unless the funds are needed for other expenses or investments. If such an opportunity presents itself, the customer should speak to his bank about special repayment terms.

How does a special repayment work?

How does a special repayment work?

There are two types: payment of a higher amount or payment of the full remaining amount (transfer fee).
When a loan agreement is concluded, the maximum amount and frequency of the special repayment without prepayment penalty is agreed with the bank.

Such a later agreement is only possible with the approval of the bank. If it is approved, a prepayment penalty is due here in any case.

Building societies are very variable here and allow any amount to be repaid early without prepayment penalty.

Other credit institutions and banks usually make special repayments of between three and ten percent of the loan amount per year. However, a maximum of 30 or 50 percent of the loan during the fixed interest period.

Does early repayment make sense for a loan?

Does early repayment make sense for a loan?

If the installments are paid on a regular basis, the borrower will at least know when he is finished with the loan. However, there is also an age-specific difference between whether you still have five years to go before the loan is paid. If there is a possibility of early repayment because it is better to repay the loan early instead of a new car, the special repayment was not only used well.

This means that you are debt-free faster and you don’t know beforehand what that can be good for. It is important that you can negotiate a loan with a special repayment on customer-friendly terms.

Can the loan be paid off faster?

Can the loan be paid off faster?

The solution is almost tailor-made. In addition to the monthly constant payments, further and possibly larger amounts can be paid in at once. This payment option automatically reduces the total amount of the loan. Hence the interest to be paid and the loan term.

What about granting such loans?

What about granting such loans?

Even if the lending was processed satisfactorily for the customer, the requirements of the banks and credit institutions take some getting used to.

As a rule, there are strict requirements for the actual special repayment. In order to keep the administrative burden for the bank as low as possible, it often works with quite high minimum sums. But there are many banks in this area that also set a maximum amount of between four and five percent of the loan amount. That has to do with the interest. If the bank grants a loan with a special repayment, it does not want to waive too much interest if possible.

Flexible repayment can also mean a higher quality of life!

Flexible repayment can also mean a higher quality of life!

If it is not a fixed but performance-related income with bonuses or profit distribution, there is very often the possibility of a special loan payment.

The advantages of such income relationships are not only financial, they also mean a lower interest burden including flexible credit use. In any case, this is a plus point for every borrower.

Are there differences between the credit institutions?

Are there differences between the credit institutions?

With direct banks, it is in principle easier to obtain such a loan with a special repayment option, since they are structured much leaner than the classic branch banks.

Experience shows that the branch banks work much more cumbersome in this sector. Sometimes a little customer pressure helps with the reference to the conditions of the direct banks.

Where do loans with a special repayment option often apply?

Where do loans with a special repayment option often apply?

For example, with a building loan. Buying a home is often associated with high costs over a long period of time. It is all too understandable that many borrowers want to be released from their debts as quickly as possible. In so far, the appropriate repayment strategy also speeds up debt relief.

What should you look for in the case of special repayment?

What should you look for in the case of special repayment?

In addition to the interest rate differential, many property owners often overlook the advantages of their special payment right. Even with a one-off payment it is worth it.

A loan of USD 200,000 with a fixed interest rate of 10 years at five percent results in a reduction in the compound interest effect of around USD 2,800 after five years with a payment of USD 10,000. In the same period, the total loan term is reduced by a full 3.5 years. The exercise time is very important here. If, in this case, the special repayment rate already occurs after two years, the interest payment is reduced by a whopping 4,800 USD and the borrower is released from the debt 4 years earlier.

Credit despite bank rejection

Banks are becoming more cautious about granting a loan. The customer goes to the bank with hope, with well-founded arguments and a precise plan in mind, and must then find that the bank rejects the loan application. Sometimes this procedure seems more than arbitrary, but in many cases it is the case that there is a negative Credit bureau entry that the customer himself did not even know about.

Look for alternatives

Look for alternatives

Many people are now inclined to stick their heads in the sand and just let the project stay. But there is also a loan despite bank refusal. At first, the loan seeker can try another bank, but since the institutes work very closely together, he will often be unlucky here.

He can find a loan despite bank refusal on the Internet. There are a number of institutions that offer a loan without a Credit bureau query. Of course, the institutes also differ from each other here and even with a loan, despite bank refusal, you should pay close attention to the prices and costs.

What are the requirements?

What are the requirements?

Even a loan despite bank refusal is subject to very specific requirements, because every institution wants its money back and that’s why they play it safe. First of all, the security of a permanent job and a regular income must be ensured. This is through suitable documents, i.e. the pay slips of at least the last two months in connection with an account statement.

In addition to the presentation of valid identification documents, only self-disclosure is required. Here, the loan seeker must disclose exactly his financial circumstances. The income and the expenditure are listed exactly. It quickly becomes clear whether he can afford this loan at all. Apart from these documents, there are no further submissions.

There is no need to provide proof of existing loans, nor is there any demand from Credit bureau or in any other way. It is worth noting at this point that the amount of the loan is limited. As a rule, only 3500 USD are paid out.

Of course, the lending rate is also a little higher, because the greater risk that the bank takes can of course be paid in this way. Due to the simple procedure and the uncomplicated processing, this loan is a viable way for many people to get a loan despite the bank refusal.

Need help finding the right loan? So you can easily choose the right one!

There are a variety of reasons why you need to take out a loan. We all have some bad luck sometimes and when it is over and you do not have a budget that can bear the cost, a loan is the perfect solution. When it comes to larger loans, such as a mortgage, you usually go to the bank, but when it is smaller, there is a much larger range of lenders on the market.

Maybe your car has broken or the washing machine stopped working and you don’t feel like washing your clothes by hand. There is nothing that the lenders for less private or fast loans care about. One of the major benefits of using this type of loan. You do not need to tell anyone what the money is for.

Once you get to the crunch and need a loan you will notice that the market is very large and the supply is even greater. There are, of course, positive sides and one of them is that competition lowers prices and improves conditions. But how do you know which lender is the best for yourself?

 

Guides and loan brokers

Guides and loan brokers

If there is something that is available online, it is information. You can easily find guides and calculations at Lånapengar.com that help you make the right decision.

If you already have experience in the field, it is even better. But for those who absolutely do not know where to turn, the best option is to use a loan broker. It is never wrong to ask for help and you will ultimately benefit from it when you have the best condition available and the lowest interest rate.

These are the two most important factors when taking out a loan. They decide exactly how much you will be paid each month and you obviously want to pay as little as possible.

In addition to helping you find the best cap, a loan broker has other benefits, namely that they can ask for a credit report and then take your profile to the lenders and negotiate with them what terms and interest rates they can offer you.

 

If you want to be able to take out larger loans

loans

Such as mortgages sometime in the future, it is important to have credit information. This also applies to smaller loans if you request more in a row. If you go to a lender yourself, everyone will ask for a credit report that will be registered in your name.

It is always advantageous to avoid this and you can then use a loan broker.

No matter how you intend to go, you should always review your options and not skip the first best but everything takes its time. As with any loan, you should always carefully consider whether or not you will be able to repay it in the end. When solving the first problem, make sure you do not create any more problems.

How to Make Home Loans Arranged After Christmas?

After Christmas, the wallet is often empty, and with New Year comes the time of balancing. How about entering it with order in loans? Take the time off to calculate what pays off the most.

Making money tidy pays off.

Free time between holidays is the ideal time to make coffee or tea, take a bowl of candy and start cleaning your wallet and your entire home budget.

  • First, take out all your credit and debit cards from your wallet and check the benefits of their terms online.
  • If the cards are invalid or disadvantageous, get away with them. Very likely you will only need one, at most two cards.

Be clear about family finances

Be clear about family finances

The second point should be an overview of family income and expenditure. Here you can do with paper and pencil, but the same service will do a simple computer table or smartphone application.

Write down all your revenue in one column and spend in the other column.

If the result in the second column is higher than the result in the first column, there is a problem somewhere. Talk to other family members about what expenses you can reduce.

If loans play a role in your report, then maybe merging multiple loans into one could reduce your spend.

When will help merge loans

When will help merge loans

Are you having trouble tracking the maturity dates of all your loans? Then consolidation is right for you. It also relieves those who pay for bank transfer when paying via account or postal order when paying by post.

Although it does not seem at first glance, these seemingly small sums in sum may rise to several thousand dollars per year.

The combination of loans is not complicated – for example, you can have loans, credit cards and overdrafts totaling between USD 30,000 and USD 300,000. To do this:

  • 2 identity cards (identity card, passport, driving license, etc.)
  • Data on current loans
  • Information on the employer or own business
  • A copy of the last account statement

We will then arrange the merger for you for free. Management and early repayment of the loan are also free of charge and you determine the amount of the monthly repayment and the repayment period.