Consumer loan: return early or in accordance with the contract?

The scope of lending is broad and capacious. Some banking products are well advertised and are popular with clients, while others are known by units. This type of loans, like consumer loans, is now the most popular and popular in our country, but despite this, many people have not yet learned to choose it correctly or use it competently.

Problems with these loans arise, as a rule, after the conclusion of the contract. It would seem that understandable and simple conditions suddenly turn into unpleasant surprises for the bank's clients. No matter how easy the consumer credit seemed, returning it is not an easy task.

Terms of consumer credit, its opportunities and disadvantages

What should I look for when signing a loan agreement? There are several key aspects that need to be carefully studied:

• interest rate. Can it change during the duration of the contract, on which it depends;
• One-time and monthly commissions, their size, specificity of charge;
• Necessity of pledge or surety. A consumer loan, the return of which is better secured, has, as a rule, more favorable conditions;
• Early repayment of the debt, change in monthly payments. How does the value of the loan vary from these aspects.

The last point should be studied in more detail. This is where misunderstandings and problems often occur, because customers do not clearly understand how to pay better on a loan. If there is a commission or penalty for early repayment of the loan , it is necessary to weigh well whether it is profitable in principle. The money that you have now, you can use it differently, without breaking the loan agreement at the same time.

The same applies to monthly payments. The most profitable consumer loan is the one where interest is charged on the balance of the amount. In this case, it is advantageous to pay not a specific specified amount, but increase it on your own. But only when this is stipulated by the contract, and no additional penalty is charged.

Pitfalls in the world of lending: what should be paid special attention to

A consumer loan, the return of which is secured by a surety, is more reliable for banking organizations. But for the guarantor it is an additional source of unrest. In the event of problems with debt repayment, the obligations fall equally on him. Also, the fact of guarantee is taken into account when drawing up a loan already on the guarantor.

Hidden commissions and payments are a headache for clients of many financial institutions. The consumer loan of Sberbank or other large banking institutions has simple and understandable conditions, but there are many cases of misunderstandings. For example, after the contract is closed, you must take a written confirmation of this in the bank. The client may not specify the amount of the commission, and it will remain in the form of a small debt on the account, which may eventually grow into a huge debt. Therefore, the consumer loan, the return of which you plan to produce, should be studied from all sides, clarifying all the details and nuances.