A borrower in the installment loan with special repayment is allowed to make an unscheduled payment during the term of the loan. The special repayment is not a problem in a installment loan and the possibility of special repayment must be specifically agreed only for example in a mortgage loan. In general, of course, every borrower can make special repayments during the term of a loan. However, a borrower must always clarify whether the lender then also the interest charged back, which were not used. Of course, if you do not recalculate the interest on a special repayment, special repayment will not do much.
For what reason is a installment loan with special repayment requested
In advertising, lenders have always announced that there is a possibility of special repayments. Since 2010, the Consumer Credit Directive has been amended and now all creditors have the right to make a special repayment. Consumer rights have been strengthened, but lenders have also had the right to demand interest as compensation for the delay. A borrower, thanks to special repayment, has the ability to reduce the term of a loan, or it can also reduce the amount of monthly installments. A borrower can then freely decide.
The installment loan with special repayment
For example, there are many potential creditors who use a discount on early booking for a vacation. After the minimum credit period of half a year, the loan can then be repaid, for example, by holiday pay. This is then referred to as special repayment. There are always cases where people get money for different reasons.
Important information about the installment loan with special repayment
The installment loan with special repayment is not difficult, because many banks offer this in the meantime. A comparison can be very useful in any case, because with the individual banks, the offers are sometimes very different. Otherwise, the costs incurred must not be neglected, because not all lenders special repayments are free. But there are also many banks where a free special repayment is quite possible. For some there is the prepayment penalty and this can have a level that a special repayment does not pay. Otherwise, a special repayment can usually cause the term is shortened, or that the rates per month are reduced. There are banks where the right to vote exists for the credit seekers and for others there is no right to vote. It also happens that a lender sets the amount of a special repayment and the amount is at least three times the loan installment.