More and more young people are deciding to take out a loan to start an independent independent life. Before making a decision about a loan, however, you should carefully look at any additional fees that accompany it. You should check what is the total cost of the loan, taking into account not only interest, but also all commissions and fees.
The total cost of the loan
When signing a loan agreement, we bear commission costs calculated as a percentage of the loan amount. In addition to the commission for processing the application, the bank may also charge us for each preparation of an annex to the contract.
Often there are also additional fees, for example for issuing a certificate confirming the repayment of the loan installment. In the case of long-term loans, eg mortgage loans, we encounter additional costs, such as the cost of real estate valuation, the cost of loan security associated with insurance until the mortgage is entered into the bank, mortgage entry fees, the cost of any changes to the contract terms during repayment or repayment cost prepayment loan. An additional cost is real estate insurance against fire and other random events. Very often, the required form of security is the life insurance of the borrower, which usually also involves a significant expense. Remember that we can negotiate commission and interest rates, especially if we use other products of a given financial institution.
Withdrawal from the credit agreement
In the case of a consumer credit agreement, we may withdraw from the contract within 10 days from the date of its conclusion. You must submit a written statement of withdrawal from the contract and deliver it in person or send by registered mail. The statement obviously results in the obligation to return the loan, unless the money was transferred directly to the seller (or service contractor) with whom the purchase was credited – then he should refund the money. The consumer is obliged to pay the contract fee specified in the contract (preparation fee) and cover the costs of establishing the security. It is important that withdrawal from the loan agreement does not mean simultaneous withdrawal from the purchase agreement (eg resignation from the purchased goods). These are two independent contracts. Therefore, if we withdraw from the loan agreement, we must take into account the necessity of immediate payment of the price of the good or service. Remember that when deciding to take out a loan, we should be guided by our own common sense. Our decision should be aware and fully responsible to avoid potential problems in the future.