July 15, 2015 Loan repayment is the borrower’s most important duty. If he meets it, he will not get into financial trouble and his name will not be included in the register of debtors. How to regulate installments? We can make an online transfer, pay the installment in the cash deposit machine, and transfer money at the post office. We are also entitled to early repayment of the loan. Is it worth overpaying your cash loan and how to do it? Let’s check what our experts say about it.
Do banks allow overpayment of the loan?
Repayment of the loan on time, especially a mortgage, can take up to 30-35 years. How to pay off your mortgage quickly? And is it worth overpaying your cash loan? According to our experts, this solution is most likely to be calculated. Every moment is good for an overpayment of credit, because we reduce the amount of monthly installments, while reducing the amount of interest. In addition, we do not have to inform the bank in advance about our intentions. Early repayment of the loan is also regulated by law. Pursuant to the Act on consumer credit of 12 May 2011, borrowers have the right to repay part or all of the loan before the deadline specified in the contract (a loan of up to PLN 255 555 is considered to be a consumer loan).
Although a mortgage cannot be considered a consumer loan in the light of applicable legal regulations, some of its provisions refer to it as much as possible. This is especially an information obligation, which requires that the borrower be notified, including on the possibility of early repayment of installments.
How to pay back the loan quickly? 2 best ways!
We already know that it is possible to pay installments ahead of time. How to pay back the loan faster? Let’s get to know the two best solutions that can be used.
Early loan repayment:
- Loan overpayment leaving a fixed loan period and reducing the installment amount.
- Overpayment of the loan with shortening the loan period and further repayment of the installment in the same amount.
From a financial point of view, the second option is best. If we are able to pay back a higher installment, we will pay the debt faster, and therefore we will pay the bank less interest.
People in financial difficulties who cannot cope with loan repayment, may apply for redemption of part or all of the loan. If, however, 14 days have not passed, we can withdraw from the loan agreement (just as we withdraw from the loan agreement). It is not a way to repay the loan earlier, but to get rid of the installments completely. After thinking about it, we can conclude that our budget is not ready for such a burden or receive financial help from the family, which makes the loan completely unnecessary.
Is it worth overpaying your cash loan – what are the costs?
The Consumer Credit Act not only indicates the option of early repayment of a cash loan, but also defines the commission costs.
Repayment of the entire loan before the deadline according to the Consumer Credit Act:
- the total cost of credit is reduced by costs that relate to the period by which the duration of the contract has been shortened,
- if we incurred costs before the loan was repaid, the bank must settle the loan with us within 14 days of the day on which we made the total repayment.
Repayment of part of the loan before the deadline according to the Consumer Credit Act:
- the creditor has the right to stipulate in the contract a commission for loan repayment before the set date. The condition is repayment over a fixed interest rate period and the loan amount repaid over the next twelve months higher than three times the average wage in the enterprise sector. The amount of the average remuneration is announced by the President of the Central Statistical Office in the Official Journal of the Republic of Poland “Monitor Polski”,
- commission for loan repayment before the agreed date cannot exceed 1% of the repaid part of the loan if the period between the loan repayment date and the loan repayment date is longer than one year,
- if the period between the loan repayment date and the loan repayment date does not exceed one year, the commission for early loan repayment cannot be higher than 0.5% of the repaid part of the loan amount,
- the loan repayment commission cannot be higher than the amount of interest that the borrower would have to pay in the period between the loan repayment before the deadline and the loan completion date agreed in the contract. The commission can not be higher than the direct costs of the consumer, which are associated with the repayment of the loan.
How to pay back your loan faster and recover your insurance costs?
A cash loan usually obliges us to take out credit insurance. Such insurance provides us and our loved ones with protection in the event of the inability to pay installments due to death, permanent disability, job loss or inability to perform it.
If we decided to take out insurance, pursuant to art. 813 of the Civil Code, we should ask the bank to return the insurance premium for the unused period of protection. The bank should make a refund within a month by depositing funds into our bank account.
What to do if the spouses’ ways separate and they still have a loan?
Who pays for a cash loan after divorce?
Repayment of a loan after divorce becomes the most important topic for former spouses. Nothing connects like a joint installment – even when love has expired, we are still responsible for settling the obligation and we are jointly and severally liable. Division of property does not apply to jointly incurred debts. In the bank’s opinion, we remain co-borrowers. Therefore, in such a situation, it is worth overpaying the loan, get rid of installments earlier and – start a new life.
Cash loan repayment ahead of schedule – for and against
Is it always worth deciding on early repayment of a cash loan? Let’s learn the arguments for and against such a solution, and it will be easier for us to make a decision.
Factors supporting early repayment of the loan
- Having a financial surplus
- High interest rate on the loan
- Lower loan costs
- No possible costs of delay
- No possible consequences of late payment
- Building the image of a reliable customer
- Getting rid of debt faster
Against the early repayment of credit
- The opportunity to make investments and gain much greater profits than those associated with lower credit costs
- Low interest rate on the loan
- Limited use of cash
- Lack of funds in the event of unforeseen expenses
Regardless of whether we pay the installments according to the repayment schedule or want to do it faster, it is worth finding out what forms of payment are accepted by banking institutions.
Online bank transfer
The first, very fast and convenient way to pay off a loan is via internet transfer. Poles love electronic banking and like to use the opportunities it provides. The more so that it makes life easier and allows you to conveniently perform financial operations, including transfers to pay installments.
To make an online transfer, you need a device with network access. It is enough to pay back the loan installment at any time and wherever we are. Transferring money will be even simpler if we use mobile applications. Today, virtually every bank offers them, and in the ranking of mobile banking applications prepared by Bankier.pl, the first place is taken by Bank Xebor WBK. It gives access to a wide range of functions and additional services. The mobile applications of Usula Bank, OutBank, Mellinial Bank and ZenBank are also noteworthy. Just install the application on your device to be able to use its functions for daily household finance.
It is also worth getting acquainted with the defined transfer option. In subsequent installments, we can only enter the amount – the rest of the data will be completed automatically (when we have decreasing installments), you can also choose a permanent transfer (when we have fixed installments). If you have forgotten about the transfer, we can use the so-called express transfer, which will speed up the transfer. Let’s check in advance how much the bank will charge for this option.
Deposit in a cash deposit machine
Repayment of a cash loan in this way is one of the cheapest. When using a bank deposit machine in which we have a liability, we usually do not pay any commission. Such a service is offered to us by ZenBank and CreditCole. Just find the nearest device and carry the amount deducted with you.
If the installment is e.g. 897.65 grosze, then we must pay 900 PLN. The cash deposit machine accepts only banknotes (up to a maximum of 50 pieces) and does not pay the rest, therefore the next installment can be reduced by the overpayment. We choose the payment for the repayment of the loan installment, we identify the account and put the banknotes into a dedicated compartment. We need to make sure of the value of the sum entered and – if everything is correct – confirm the operation. The payment will be credited no later than the next business day, which is important – on the date of payment.
Cash payment at a bank branch
Paying the installment in a bank branch requires you to go to the nearest branch, where long queues can wait for us, especially in larger cities. For this installment payment at a stationary point is available only during business hours, i.e. usually between 10.00 and 18.00. Some banks also have branches open on Saturday, but not later than until 14.00.
In addition, we may be charged with a fee for depositing cash at a bank branch if we repay installments of a loan taken from another financial institution. It is best to check the detailed terms in the fee table on the bank’s website.
Transfer at the post office
In addition to cash deposits at bank branches, post office transfers are one of the most time-consuming methods for regulating loan installments. It also involves an additional fee of PLN 3.50 for each standard payment, i.e. it has been credited to the account indicated on the next business day at the latest. If we care about instant transfer and real-time payment, we will pay PLN 7. These prices apply to deposits up to PLN 600, the higher the transfer amount, the higher the fee. If we repaid the loan taken for 24 months in this way, then we would have to spend an additional several dozen or more zlotys: PLN 84 in the case of a standard transfer and as much as PLN 168 in the case of an express payment. Are you sure it’s worth it to you?
Credit decisions are not the simplest ones. Only choosing the right loan can be easy, especially if you use the cash loan rankings.
Ranking of cash loans
The ranking of cash loans indicates the best loan offers, reaching up to PLN 200,000. With such an offer comes out to us incl. Usula Bank, which also guarantees a 10-year loan period and the possibility of applying without leaving home. In turn, OutBank, considered one of the best lenders in the country, offers up to PLN 120,000 and PLN 0 for early loan repayment.
However, if we do not need to borrow a large amount, we can opt for a non-bank loan. The online loan is safe, fast and convenient. We submit an application in a few minutes and the money instantly goes to the account. Additional funds can be used for any purpose, and with the second contract we can often profit from loyalty programs and attractive promotions. The most interesting offers can be found in payday loans rankings and installment loans rankings.