Both a conventional installment loan and an instant loan must be repaid in consistently high monthly installments over a precisely agreed period. In addition to the repayment amount, interest also accrues, which in principle must always be paid. Sometimes processing fees are added. Since the banks as lenders are absolutely dependent on the interest income, they will not usually allow you to make special payments for early repayment of the loan.
Conditions for an instant loan with special repayment
A normal installment loan usually does not provide for special repayments. However, some banks allow their customers to make a special repayment once a year. How high this may be is determined individually. In some cases it can be quite normal for up to 50% of the outstanding loan amount to be repaid in one amount, in other cases the upper limit can be as little as 5%.
Many borrowers attach great importance to being able to make special repayments in addition to the regular monthly loan installments. This would give them the opportunity to repay the loan early in the event of a sudden and unexpected blessing of money and thereby become debt free, which is ultimately the goal of most borrowers. If you are also interested in getting an instant loan with a special repayment, then you should definitely seek a conversation with your bank to find a mutually acceptable solution. Some banks grant their customers the basic option for an instant loan with a special repayment, but do require payment of a prepayment penalty. The banks then use this to compensate for the lost interest income.
Provider for an instant loan with special repayment
If you are looking for an instant loan with a special repayment, you are most likely to find it on the Internet. Before you decide on a specific offer, you should compare the individual conditions carefully. Some banks also offer the option of making special repayments for an installment loan at any time.
Once you have found the loan of your choice, you can apply for it directly online. If the necessary conditions are met, an immediate loan with a special repayment is usually approved and paid out very quickly. Each special repayment made during the loan term reduces your remaining debt and means that you either have to pay smaller monthly installments or that the term of the loan is shortened overall.