Having a consumer credit engages your obligation: you are required to repay it.
What are the characteristics from the repayment of a consumer mortgage? What is the repayment term and exactly how can you repay your mortgage in advance?
Compensation of a consumer credit: what is it?
Repayment of a loan leads to the payment of normal monthly payments, which consist partially of the capital borrowed, but additionally interest due to the credit organization.
The return can not begin under any circumstances till:
- you might have signed the loan provide;
- the 14-day revocation period has not approved;
- you have enter into possession of the sum of money lent.
According to the type of consumer loan activated, there may be subtleties regarding the repayment:
- For an assigned loan: the particular repayment can not begin till the good or service borrowed with the loan has been shipped. If you want to reduce the reflection time for you to make you deliver faster, it will be possible.
- For a spinning credit: as and when your payments, the money reserve is reconstituted and you can reuse it. Your own repayments only include attention on the money actually invested, not on the total quantity of credit (if you do not invest the entire amount).
Repayment period of someone loan
The minimal repayment term of a credit is 3 months.
The maximum repayment period depends upon several factors:
- From your profile: should you have a personal contribution for example , the particular repayment period can be decreased.
- The amount lent and that of monthly payments.
- From the credit organization: in general, the maximum is around seven years.
In the case of a revolving credit score, the duration of the agreement is 1 year renewable. For the loan amount of less than € 3, 000, the maximum pay back term is 3 years. Over € 3, 000, the most duration can be up to five years. After 1 year without needing the reserve, the agreement will be automatically suspended.
Difficulties of pay back: what to do?
Are you fighting to pay back your credit?
Several choices are possible:
- If you have taken out mortgage insurance, you can use your ensures to have the insurer pay the particular installments of your loan to suit your needs. For that, it is necessary that the trouble which you meet is envisaged in the contract: invalidity, lack of autonomy, unemployment, etc .
- Contact the lender to request a payment deadline or perhaps a deadline. He will not be appreciated to accept.
- Request the district court to get a grace period: if your document is accepted, the suspension system of the refunds can go up in order to 2 years, without penalties.
If you are going through significant financial difficulties, constant and lasting, it is possible to install a folder of over-indebtedness.
Early pay back of your consumer loan
Refunding your credit earlier may result in penalties:
- You will find information on how these allowances are usually calculated in the loan provide.
- They are restricted to law to 1% from the loan amount if the outstanding repayment term was more than 1 year, and 0. 5% of the loan amount when the remaining term was lower than 1 year.
- You are able to negotiate the amount of the prepayment penalties at the time of the credit score contraction.
In certain cases, the prepayment of your consumer credit does not require any refund penalties:
- when the amount remaining to be refunded is definitely less than € 10, 1000;
- if the price of your loan is adjustable;
- if your mortgage is a revolving credit.