An installment loan is a good way to finance larger expenses for people who want to gradually pay back their debts. Smaller installments do not burden the budget as much as a one-time repayment, and the possibility of incurring a larger amount means that this loan is often compared to a traditional bank loan. What is the repayment of such a loan?
What is the total installment loan amount?
When applying for an installment loan, you can come across several concepts that are similar to each other, but they mean something completely different. They should be distinguished in order to choose the best offer for you and determine the parameters of the loan so that they are tailored to the needs and financial possibilities. At the beginning you have to specify what the total installment loan amount is. This is nothing more than the amount of funding that actually affects the account after the application has been approved. This is the basic amount to which interest and commissions will be added. However, the maximum amount of the commitment is the highest possible grant that can be taken in the company.In the case of Intratek, it is $ 10,000, but the institutions determine themselves how much they are able to lend to the client.
What does the installment loan repayment amount consist of?
In the case of installment loans, the payments are spread over several months, and each installment bears interest. When determining the amount of credit you want to apply for, you need to consider how much you will actually have to pay back. The installment loan repayment amount consists of additional service costs such as commission and interest rate. At Intratka, the annual nominal interest rate is 10%, while the APRC is variable, depending on the choice of the loan amount and its repayment time. The installment loan agreement contains all necessary information that should be traced before signing. This is the last moment to introduce changes in the loan parameters and to determine the amount of the installment, which will be adapted to the financial possibilities.
Different maximum loan amount
Although the company offers loans for up to 10,000, not everyone can take advantage of such an offer. It is only addressed to customers who have previously used Intratek’s services and have fulfilled their previous obligations in a timely manner. New borrowers can submit an application for a maximum grant amount of $ 3,000 and a loan period of 12 months. The repayment period can be shortened to 6 months, which automatically reduces the cost of the total repayment of the installment loan. Regular customers have the option of applying for $ 10,000 with a repayment deadline of 24 months, which can be shortened to 12, thus saving on commission and interest rates.
How does the repayment date affect the installments?
When applying for a loan, you should consider choosing the amount and duration of the loan. The longer the deadline, the more you will have to pay, but the installment will be lower. This is due to the fact that every day interest is accrued that affects the amount of the monthly installment. With a shorter loan period, the additional loan costs are automatically reduced. To better illustrate this, a loan calculator will be useful, with the help of which you can easily calculate the total repayment amount of an installment loan. There is a more convenient way to check the loan amount using the sliders on the Intratek website.When determining the loan amount and loan term, information is generated regarding the amount of the monthly installment, the total amount to be repaid and the APRC. On this basis,
Early loan repayment – benefits
Taking a loan even for the maximum loan period, you can pay it back earlier, thus reducing interest costs. Early repayment of the loan will allow you to avoid additional costs, which with high amounts represents savings of up to several thousand zlotys. This solution has one more advantage, namely increasing credibility in the eyes of the company. A borrower who is not in arrears and has previously paid his debts has a better chance of getting a loan on favorable terms in the future. The installment loan agreement also contains information that authorizes the lender to introduce special promotions and discounts for customers. Therefore, it is worth paying the liability in a timely manner, because you can count on the majority of the lender’s favor.
What to remember when paying back a loan?
Loan companies try to simplify formalities as much as possible so that loans are easily available. The repayment procedure is also simple, but you must remember to keep the deadlines. It is important not to leave the deposit on the last day, because any delay means additional fees will be charged. So, if the repayment schedule is set for the 15th day of each month, it is safer to make a transfer already 14. Depending on interbank sessions, the time of posting money may be extended to the next day, so for your own safety it is worth keeping an eye on deadlines. All you need to do in the title is the loan number that you assigned when you applied.
How to choose the best installment loan?
Your choice must be based primarily on your own financial capabilities. There is no point in asking for high amounts that will be difficult to pay back later. Ranking of loans with specified parameters and additional fees may be helpful in finding the best offer. It is also worth using a loan calculator, which can be used to calculate the monthly installments and the interest rate. In addition, it is safer to apply for a longer loan period and, if possible, make early repayments instead of exposing yourself to the risk of overdue payments.