Tip: If you are looking for a loan, look at the conditions of the institutions. Find out if free special repayments are allowed. Unscheduled repayment is the ability to repay a loan more quickly through unscheduled repayments. Where can I get a cheap loan with free special repayment? Compare loan providers in the loan calculator – >> Where can I get the cheapest loan?
Special repayment loans – does that make sense?
What is the unscheduled amortization? You repay a loan in monthly installments. Between the lender and the borrower, the payment is determined at the conclusion of the contract for the entire duration of the contract. Special repayments are any out-of-pocket payments made outside these contractual arrangements which served to repay the loan early. If you can already count on additional capital from an inheritance, bonus payment, bonus or salary increase when concluding a loan, we recommend a loan with special repayment.
Special repayment is already common in many cases but not in others. When choosing the lender, pay attention to the possibility of special repayment or insist on special repayment on conclusion of the loan. A subsequent adaptation of the contract to the possibilities of special repayment is usually expensive.
There is not a special repayment at every institute.
Some providers charge a penalty for the early repayment of the loan. In return, special repayments are possible. The other lenders, on the other hand, grant a special repayment free of charge but limit it to a maximum amount. A special repayment is always useful for you as a borrower because you repay the loan more quickly with each special repayment and reduce the accumulated accrued interest.
Banks, on the other hand, miss the profit because they generate interest income from the lending business. Therefore, if the loan is repaid early, the penalty or special repayment will be limited to a maximum amount. Unscheduled repayment is principally not part of the loan costs. So it does not affect your monthly payments or decide what your credit will be.
For installment loans, there is therefore the following rule of thumb: always specify in the contract the possibilities of extraordinary repayment – regardless of whether you make use of the alternative or not. In the case of special repayment of real estate loans, this is not the case; here are other requirements to consider. If you have excess capital, the question arises “Unscheduled repayments make sense or savings?
If the savings rate is higher than the lending rate, then it makes sense to raise the capital. However, experience has shown that interest rates on overnight money or time deposits never exceed interest on loans. Conversely, a special repayment is better than the save. Only risky assets such. B. Shares or investment funds are highly profitable and represent a suitable variant for unscheduled repayment.
It’s important to compare the cost of loans with the highest return on investment to see what makes more sense. Special repayments make sense, especially with expensive loans: they significantly shorten the terms to maturity, reduce your monthly debts and are debt-free. But you can not always afford a special repayment. Alternatively, a debt restructuring is recommended.
If interest rates on current installment loans are significantly lower than the contractual interest rate, it is better to cancel the existing loan and take out a new, cheaper loan. What to look out for, read our article on debt rescheduling. Also for car financing a special repayment is recommended. The special repayment reduces the last installment and the follow-up loan is not that high anymore.