Almost everyone in his or her life sometimes faces the problem that there is not enough money available to fulfill a wish. This wish can vary from small to very large: a few separate euros for the parking meter to a huge amount of money for the purchase of a house . The problem with the few loose parking coins can usually be solved by looking at your co-driver friendly, but with a house this is of course a completely different story. Other major events, such as a marriage or the purchase of a boat, often cost more than you and your surroundings can afford. Taking out a personal loan can then be a solution. But what are the consequences of this?
If you want to know more about (repaying a) personal loan, it is important to first understand for what purposes this loan construction is suitable. You usually cancel a personal loan when you want to make a large purchase and know in advance what amount of money this will require. You then determine the period within which you can and will repay the loan. On the basis of this information you will go around the table with the lender and you will reach an agreement in which the borrowed amount, the calculated interest rate and the term of the loan are recorded. Actually the final answer to the question: how much can I borrow ?. A very good construction by which all parties know in advance where they stand, but what if you want to repay your personal loan sooner?
Personal loan earlier repay and penalties
Borrowing money costs money, everyone knows that. On the other hand, the lending party often earns good money, just think of the calculated interest. If you want to repay your personal loan earlier than the aforementioned end date, then the lender will miss out on income (calculated interest). To compensate for this loss, a fine is calculated. This has been 1% since 1 July 2011 when the loan would still run for more than a year. With a remaining term of less than one year, the fine is 0.5%. However, not all lenders charge a fine for early repayment.
Cigar from their own box
At first glance, the solution seems obvious: wise lending is done with a party that does not charge a fine for early repayment. But be careful, because with this reasoning you can come home from a cold funfair. With most lenders, the penalty-free repayment is nothing more or less than a cigar from your own box: the interest rate on the loan itself is higher, so the repayment penalty has been paid long before you have paid off a euro prematurely.