Most citizens, despite the high demand, do not like credit products due to overpayment in the form of interest rates. It is no secret to anyone that financial institutions will thus earn in borrowers by providing cash under the percentage.
And the higher the interest rate, the amount of the loan and its term, the more you have to overpay the borrower. However, with a competent approach, it is possible to significantly reduce the overpayment of the loan. Consider these opportunities.
Today, even in the smallest city itself, you can find a large number of credit institutions from different companies. Therefore, before choosing a lender, it is necessary to study as many proposals from different companies as possible and delve into all the details.
The nuances will be in any bank, choose exactly those that are more suitable for you. One lender may have a relatively low interest rate, but a high commission. And the other bet is slightly higher, but there is no insurance.
Each bank for its own forms applications and provides a profit. Compare all available offers, and select the appropriate. At first glance, you may seem that a loan without insurance is much more profitable, but often when making an insurance policy, the bank can reduce interest on the loan, and as a result, the insurance loan will be much more profitable than without it. It is important to carefully calculate all the nuances. You can do it as yourself, and contacting the bank employee. Not always insurance can go to the borrower.
If, when issuing a loan agreement, the Bank is trying to impose insurance to you with the fact that the interest rate will be reduced — agree, and make a double trick.
When the contract is already concluded, within 14 days (the number of days can vary depending on the insurance company) you have time to write an application for refusal of the insurance policy.
As a result, you get a reduced interest rate on the loan and do not overpay for insurance. It is also important to know that such tricks do not apply to property insurance, which is a deposit, since this insurance is mandatory.
The loan overpayment also depends on the repayment period. And the more this period, the more money you give the creditor for using credit funds. To begin with, consider the example, and then we’ll figure it out better.
For example, you want to purchase a consumer loan in the amount of 300 thousand rubles under 10% per annum. If you form a loan for 4 years on the above conditions, then your monthly payment will be about 7,600 rubles, and the final overpayment of about 65 thousand rubles.
Thus, you can avoid a substantial overpayment if you pay a little more than it was supposed, simply reducing the credit period.
Often reducing the term, monthly payment increases by 1-3 thousand rubles, and if for your budget it is not as critical, it is better to choose the most minimal. However, here the main thing is not to go face, in pursuit of overpayment, do not go too far, and do not make a monthly payment for your budget.
There are two loan repayment systems — annuity and differentiated. They differ only in percentage ratio to the body of the loan. If during the annuity system the borrower in the first months of payment reaches more percent than the body. Then with the differentiated calculation of interest and body of the loan occurs evenly.
For example, with an annuity system with a loan term for 1 year, the bank in the first 3 months of payment is trying to fit the maximum amount of interest, that is, your monthly payment is 1,800 rubles, from which 1000 rubles is interest, and the remaining part is the body of the loan. This is due to the fact that banks are not beneficial to pay off the loan ahead of time, so he, reducing the risks, shifts interest for the first months of payment, which you are with great confidence you can not pay off early.
If you have to pay the loan, for example, 3 months, then with an annuity payment for early repayment you will benefit not more than 300-500 rubles, while with a differentiated payment this amount will be several times higher.
Refinancing by its structure involves obtaining new credit obligations on more favorable conditions in order to overlap old.
And refinancing is a service when later, for example, the year of loan payments, you find a lower interest rate than you have now, and thanks to the refinancing service reduce the loan rate.
For example, last year you have acquired a loan at 12% per year, and now you have found that you can make credit liabilities at a rate of 8%, and thanks to the restructuring you can reduce the interest rate to 8%.
However, it is worth understanding that the reduced rate will act on the current balance of the loan, and as a result of recalculation, no one will return to your difference in the rate for already paid payments.
The early repayment of the loan is divided into two types at once — it is partial or complete. If the loan balance is too large, and you want to close the loan as soon as possible, but the income does not allow this in full — you can use the service of partial early repayment.
Partial redemption provides for a sum that is more than a monthly payment. For example, you want to pay for a double-size payment of the monthly payment. If you do through the bank’s mobile application, then the system will ask you further actions to implement funds and will offer either reduce the amount of the monthly payment, or reduce the term of credit obligations.
As you already understood, the first option is not for us, you will also continue to pay the bank interest and the overpayment can not be reduced. But reducing the payment period even for 1 month, you reduce the amount of overpayment.
We hope that our article was useful for you!