Nowadays, the information space is filled with offers of profitable loans. Banking institutions publish terms one better than the other. However, the most important indicator for the recipient of funds - the total cost of the loan - most often remains in the shadow of more attractive options.
But, in the end, it is the amount of funds paid to the bank that becomes the moment that most often upsets after paying off the debt. In addition, this concept is very important for individual entrepreneurs and organizations. Depending on the occurrence of certain payments in the cost of the loan, the cost of production and services is added up.
How is the full cost of the loan calculated. What are the legal provisions?
How is the total cost of the loan calculated? Until some time, there was no harmony in this matter. Any authorized organization could, by its method, advertise loan services. Most often, very small percentages were offered, sometimes bordering on common sense and the refinancing rate. However, later it turned out that the final payments were several times higher than their declared amount.
In 2008, the Bank of Russia was preoccupied with this problem and adopted a document, according to which credit institutions should have calculated this indicator. Now, in order to correctly reflect the full cost of the loan, the formula should be applied alone.
In this way, this procedure began to be regulated, and although it provides for some deviations, they are no longer of a fundamental nature.
What payments are included in the cost of the loan. Let's consider this question in more detail.
Currently, the full cost of the loan includes the following payments by the borrower:
- Amounts paid as part of the repayment of the bulk of the loan;
- Amounts paid in order to pay interest on the loan ;
- commissions for the consideration of an application for a loan or for a loan (very rarely used or hidden);
- commissions for bank account servicing (cash withdrawals, transfers to third-party accounts, etc.);
- commissions used when issuing credit cards: the cost of the card itself, fees for its annual service, etc.
But this list is not complete. The full cost of the loan has recently been increasing by payments on life insurance of the borrower or his liability in the provision of collateral. It should be said that in this way banks shift their own risks onto the shoulders of customers. However, loan recipients most often meekly agree to these terms. After all, money is needed.
What amounts are not included? The Central Bank has established a number of payments that do not affect the cost of the loan. Here they are:
- payments not related to the fulfillment of the terms of the loan agreement such as compulsory motor liability insurance, etc .;
- sanctions imposed on the borrower in case of failure to fulfill the terms of the contract;
- payments made at the initiative of the borrower himself, usually this is a commission for early repayment, a fee for information on the status of a credit account, a commission for depositing or withdrawing cash;
In some cases, this list has been expanded to include the following costs:
- commission on operations in foreign currency, if the agreement was in rubles;
- commission for transactions conducted by other credit institutions;
- payment for suspension of operations.
The full cost of the loan may have different payment options depending on the size of payments. If the borrower stops at a periodic change in their size, the cost of the loan is determined by the maximum amounts and terms of repayment. If he prefers calmer regular payments, usually monthly, then it is calculated on these grounds.
It would seem that a simple borrower would be able to calculate all the amounts that he would have to pay. In fact, it will most likely turn out that its numbers will differ from bank figures. And, of course, in a smaller direction. So it’s best to compare bank offers in this way. No more.