Three expenses you can avoid when you take out a loan
3 expenses to avoid when you hire a loan. We tell you the three expenses you can avoid when you hire loans. Learn how to save money and pay less interesting interests and expenses.
When a person requests loans in different banks to finance any type of project, it is fixed mainly in the interest rate. The lower the lowest interest rate will be the quota and the least will have to pay during the loan duration
However, it is not the only important thing you should look at when choosing which is the best financing for you. All loans carry opening and cancellation expenses, in addition to insurance, which depend on each banking entity.
That is why it is important that before deciding on one or the other loans of any bank, read carefully all the conditions to avoid paying more.
Commission, Opening and Study Expenses
Las formalization commissions They are the most included additional expenditure on loans for personal projects. There are two types: the opening, which remunerates the financial for the procedures carried out to grant the credit, and the study, which is paid for the evaluation of the client profile. Both must be paid at the time of signing the contract.
There are loans that include only the opening commission, only the study or both at the same time. The price of these commissions depends on the internal policy of each financial, but it is usually Between 0 % and 3 % on the amount provided. For example, if a person hires a credit of 10,000 euros with an opening commission of 3 %, he must pay 300 euros to the lender on the day the contract is signed.
You can negotiate all these commissions with the banking entities although for some they are unnegociable. Ideally, you have more than one offer and thus press banks with the conditions of the rest of the entities that have approved the financing.
Insurance expenses
Also It is common for some financial require life insurance or payment protection as a condition to access the loan. The first will liquidate the debt if the holder dies or suffers a permanent disability, while the second will cover the payment of the quotas for a year if the debtor remains unemployed or is temporarily incapacitated to work.
CHiring insurance to cover these risks is usually unnecessary., especially if the applicant does not have an advanced age and enjoys stable job. In addition, these policies cost money, although their price may vary depending on the insurer's rates and the client's profile. For example, if life insurance is associated with a loan of 10,000 euros, its annual cousin will be between 30 and 50 euros on average. For an average period of five years, that would mean between 150 and 250 euros in total.
Account maintenance expenses
Each bank has conditions and maintenance expenses of the bank account. Some entities have more or less easy requirements to meet by the client so that he does not have to pay any type of commission of any kind.
Finally, there is a third expense that usually overlooks: the maintenance commission associated with the account that will be used to pay the loan installments. Since 2012, financial ones have the right to collect a periodic position for that account, provided that their existence and their price are clearly indicated in the credit contract (the commission cannot make unilaterally).
Depending on the entity with which the credit is hired, therefore, it is possible that a maintenance commission must be paid on its associated account. On average, The price of this commission is usually between 30 and 70 euros per year. For example, if a client signs a loan with an average period of five years, this position can cost between 150 and 350 euros in total.
How to pay less expenses on a loan?
If the future debtor wants to save all these expenses, the solution is simple: it must hire the loan with a financial one that is not charged. Life banks usually apply one of these coasts, but The entities that operate online rarely include them in their credits. In addition, in general, they offer competitive interest rates.
In the event that a financial one does notice any of these expenses, can also be negotiated to avoid including them in the contract. The chances of reaching that agreement will be higher if the applicant enjoys a good economic situation and has offers of other financial ones, since the entity will be more open to negotiate so as not to lose a potential client.
In Valacredi, Our financial department, we manage you personal loan To get the financing you need for your personal and professional projects.
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