The right to prepay a consumer loan is something that not everyone knows and it is beneficial to do if you have extra money and want to cancel it. Although it is not ideal to do so at any time, the credit agreement always details the scope of previous payments or cancellations . They charge you interest and a commission to change the conditions of the loan, but all the details are explained in the credit agreement.
If you want to request a consumer credit or you already did it without knowing all the payment conditions, we want to tell you about some issues related to prepayment or prepayment, which are very necessary. How much is it going to cost you? Can I do it whenever I want? Keep reading and find out.
Prepay a consumer loan: pay all or part of a debt
As with any other type of credit, you can prepay in advance or pay all or part of a debt. You are protected by law and it is an inalienable right.
In addition, according to current regulations, you can do it against the will of the financial institution that lent the money , provided that some conditions are met.
What are the prepayment conditions of a consumer credit?
When you prepay a loan, you must pay the interest up to the moment of paying all or part of a debt, and a prepayment commission. The commission charged for the prepayment of a consumer loan corresponds to the cost of one month of interest for non-adjustable operations, which are loans in pesos, or one and a half months of interest for adjustable operations, corresponding to the UF loans. In both cases the calculation is made considering the amount of money that is being prepaid.On the other hand, the prepaid commission may have a different value if it concerns credits taken before June 26, 2004.
Should you pay all or part of a debt in advance?
When making an advance payment of a credit, the money owed is paid, plus the interest accrued from the last payment to the moment the prepayment is made. At that time, in addition to the capital, the prepaid commission is paid.
So there are two factors to consider to know whether or not it is convenient for you to cancel consumer credit:
.- When interest rates drop, it is a good opportunity to ask for a new loan, pay off the old one and keep a new debt, but with a lower interest.
As the term of the loan approaches, the debt is only being amortized
Experts recommend that you anticipate payment in the first stage of the debt, in the initial months and not at the end, because at this stage only the interest is being paid and in the second, the amount of the loan itself.
You already know that if you collect the money to pay all or part of a consumer credit debt, you can do it without difficulties. Now you just need to find the credit according to your needs. The smartest way is to simulate in Compare to get the most convenient offers on the market without leaving your home.