Assess your options
Calculate how much and for how long you need. But keep in mind that you will have to return not only this money, interest and possible additional payments will be added to it.
Find out how much you will have to pay
Be sure to find out the full cost of the loan (TCP). It takes into account not only the interest rate but also other costs stipulated by the contract, such as mandatory insurance or a fee for issuing a credit card.
Check if your contract includes any additional paid services that you do not need: a credit card, SMS-informing, voluntary life, and health insurance, remote services, or notary services. Check if these items are required or you can opt-out.
-Please note that the cost of the loan from the bank should not include services for which you did not give your consent,and those that he provides in his interests: consideration of the application, preparing documents for the contract, and maintaining a loan account.
Compare conditions of different lenders https://myfin.us/personal-loans/with-no-origination-fee
Any bank, MFI, CPC, or pawnshop has general terms and conditions for a consumer loan agreement - these are standard requirements for anyone who wants to take a loan or a loan. They can always be found on the organization's website or in its office.
But each contract has a set of individual conditions - they determine the cost of a loan or loan, the terms, and the number of monthly payments, which includes interest.
Individual terms and conditions consist of 16 obligatory clauses and may contain additional clauses. All of them must be agreed upon by the bank and the borrower.
All conditions must be indicated in a special table at the beginning of the contract and must be clear to you. The contract itself can be considered concluded only if you and the bank have reached an agreement on all points.
What conditions should be paid special attention to?
In addition to the main thing - the loan amount, term, and interest rate - be sure to check the following points:
1. Payment schedule
Make sure you can pay the bank the right amount on time. It is better to play it safe: for example, if you have a salary on the 20th of each month, you should choose the date for depositing money no earlier than the 25th. After the conclusion of the contract, the bank is obliged to give you a payment schedule. For credit cards and cards with an overdraft, the exact schedule is not given out, but the terms of repayment of the debt are prescribed in the contract.
2. Early repayment of debt
If you wish, in addition to the mandatory payments according to the schedule, you can make additional amounts - they will reduce your principal debt. Then there will be less interest.
After each such early repayment, the lender will have to make you a new schedule. Many agreements allow you to choose whether to keep the previous amount of payments and reduce the term of the loan or reduce monthly installments and leave the term the same. It is more profitable to pay off the creditor faster - then the final overpayment will be less.
Usually, you need to warn the creditor of your decision to pay off the debt ahead of schedule at least 30 days in advance. However, a shorter notice period may be specified in the contract. Sometimes it’s enough just to check the box in your account on the website or in the mobile application for the additional amount to be credited and a new schedule to be given to you. Check it out in advance. Read more about the early repayment procedure here.
3. Fines and penalties
Find out what happens if you fail to meet the payment schedule. If you know in advance that even a day of delay will cost 1,000 rubles, then you will probably follow the dates on the calendar more closely.
4. Processing of personal data
There may be a clause in the contract that you allow the use of your data. Specify exactly how they will be used. If to send you promotional mailings, then you can opt-out.
5. Assignment of rights
Usually, there is a clause in the contract that the creditor has the right to transfer your debt to third parties. For example, if you are late in payments or if the organization itself decides to close. You can forbid the assignment of rights, but it is likely that then you will increase the rate or even refuse a loan.
Do not rush to sign the contract right away. According to the rules, you can take 5 days to think about the offer. During this time, the bank cannot change the individual terms of the contract offered to you. And you can compare the offers of different lenders and choose the one that suits you.
