How to repay a loan: rules for paying off debt without overpayments

H1: How to repay the loan
A financial loan is a pleasant process for the client when he receives funds. But it becomes not very pleasant when they have to be returned. In addition, we always recommend paying off creditors as soon as possible in order to build a good credit history and avoid paying fines and fees.
First, in order to repay the loan on time, the bor, the exact amount of money that he must return and the methods of paying the loan.
Secondly, the loan repayment schedule is usually approved when a mortgage loan, a targeted loan for household appliances or a car is issued. When paying for a credit card, it is important for the bor.

Loan repayment procedure

The question between the bor;

• online repayment through Internet banking (this method is convenient when the client has the required amount of non-cash funds on the account);

• using the bank's payment terminals (it is not always safe from the point of view of timely crediting them to the required account, as the money can "go" for several days);

• use of special payment services (Portmone, EasyPay or LiqPay).

When planning the loan repayment process, the bor;

• analyze credit programs, their advantages and disadvantages, and then choose the most convenient and optimal one;

•think through the loan repayment process in detail;

• analyze the sources and terms of own financial income.

In the event of the appearance of free funds, the debtor can use the right to early repayment of the loan, which, at the same time, will reduce the amount of interest on payments. The bank cannot refuse him this wish and has no right to charge any fees or impose additional fines. In this case, the legislation of Colombia is on the side of the borrower.

Annuity loan repayment scheme

As we wrote above, the loan repayment procedure is discussed between the creditor and the client at the stage of the loan application. It can be of several types.
One-time repayment - that is, the return of the entire debt with interest after a certain period, on a certain day. This procedure is not used often, since it is easier for the borrower to repay the debt in installments over a certain period of time, and the bank does not want to risk waiting until the last day for payment.
Another type is the return of the principal amount of the loan in equal parts. At the same time, interest is paid less than in the first option, beca which they are calculated decreases.
In addition, there is a repayment of the loan in variable installments. That is, the debtor returns both part of the principal amount and interest, but each month these are different amounts.
Most banks enter into agreements based on an annuity loan repayment scheme. The essence of this scheme is that the return of funds together with interest is assumed to be the same amount every month during the entire agreed crediting period. For the borrower, this scheme is simpler, but in the end, he pays more according to this schedule than according to the payment options described above.
Studying the main issues related to lending expands the horizons of financial literacy of the population and equips it with information that can protect against unnecessary and unpleasant problems.
Our resource creditnice.co helps to acquire new knowledge in a timely manner and provides practical assistance in obtaining a loan.