Loans have become part of our lives; they allow us to acquire expensive things without waiting for salaries or bonuses. Moreover, given the inability of the Russian people to save money and the increased need for comfort, as well as competition among banks, the possibility of a loan has ceased to surprise our contemporaries. However, far from everyone still understood the many conditions of banks. But in vain. Some allow you to reduce monthly loan payments (low rate, differentiated payments), while others, on the contrary, increase them (annuity payments, short term).
Obviously a favorable condition in lending programs is a low interest rate. Less obvious benefits lie in the way the loan is repaid. For example, if you choose differentiated payments as a condition , you will see huge amounts of monthly payments in your schedule, which, however, decrease every month. In contrast to differentiation, so-called annuity payments are offered. By choosing them, you will pay off the debt in equal installments every month. But the amount of the loan overpayment in the end will be much higher.
For many citizens of our country, equal payments are the most attractive, given that for most workers the main income is stable and unchanged. In other words, knowing in advance that you are able to save a certain amount from your salary to pay off debt (from 5 to 15 thousand rubles), it is better to choose annuity balances (in addition, many bank lending programs do not provide for the possibility of choosing another method of repayment) . If your income is not so constant, but much higher than average, you can use the differential payment system, or choose a loyal program with equal payments.
But, before you sign a loan agreement with the bank , make sure that if the program includes annuity payments, early repayment is not prohibited. Suddenly, you will have the opportunity to pay the bank much earlier than the period (taken with a margin), which is specified in the agreement. I would not want to receive a fine for this desire (in the text of the contract this is called a moratorium on early repayment). Some banks, allowing a fee in excess of the necessary, set a minimum amount of 10 thousand rubles, or even 30 thousand. Such an additional payment for a monthly payment, as a rule, is not found with anyone, you have to pay the same amount in equal installments. Although these requirements of banks are more likely an exception than a rule. Many have long abandoned the moratorium, fines and minimum amounts of early repayment. The reason for this refusal lies not in the competition between banks, but in profit. The fact is that in the case of equal payments, it is not always wise to try to repay the loan ahead of schedule. To understand, you should know how payments are charged.
Annuity payments, although they are equal, but it is important to know that in the first half of the period they consist mainly of interest accrued by the bank, and only then of the main debt. According to the differentiated system, the entire loan is divided into equal payments, but at the beginning of the term, interest is added to them. It turns out that you will pay the “wrap” in the first months of the loan agreement, paying off the main debt right away. And according to the annuity system, the loan amount is repaid more slowly, and the interest on it is distributed over the entire term.
From this, a rule should be deduced: do not repay an annuity loan ahead of schedule. Wanting to quickly repay the loan, you will lose more on interest.
These nuances, like many others, are very important. If you often resort to a loan and do not want to overpay, take more care to the conditions of the bank, especially to those that you can choose when applying for: loan term, repayment method, interest rate.