Return the loan early or defer it: playing with the deadlines

When requesting loans online or requesting them from a traditional banking entity, one of the most important aspects is the repayment term: key factors such as interest and the total cost of the product depend on it. In addition, other factors such as our present and future economic capacity come into play. What if things change, for better or worse?

Early repayment: pay the loan before the term expires

Early repayment: pay the loan before the term expires

If you have collected enough money to get rid of that personal loan that you hired a while ago, when that additional liquidity was good for you, you can do it before the agreed period. This is true for both multi-year loans and 30-day online mini loans.

Normally there are two types of early repayment: total, that is, the entire loan is paid and the contract is liquidated, or partial, which allows you to advance a portion of the money owed and thus reduce fees, shortening the term.

Repayment of the loan usually has a small cost in the form of a commission, which is determined by law, between 0.5% and 1% depending on whether there are more than 12 months of loan or less. It always represents a saving with respect to paying the total interest of the loan during the planned term, and in many cases that saving is considerable, so it is worth assessing it whenever possible.

That said, there are entities that do not charge a single dollar to return the loan early: it is a matter of the entity’s policy towards its clients. If this is so, the savings are even greater! Check the different entities and offers to discover which have less commissions in our comparator.

The other side of the coin: a postponement

The other side of the coin: a postponement

If, on the contrary, our personal finances would be relieved by not paying that monthly payment as it is now, almost all lenders offer the possibility of deferring a fee or requesting an extension of the total period. Even in the sector of 30-day fast mini loans, a certain number of additional days can be deferred.

The cost of this operation is higher, because the interest is applied for a longer time on the amount due, and it is necessary to be in a position to have the payment of the installments up to date, without any debts or outstanding fees, in order to request it.

While it is true that the repayment term of any loan is a fixed aspect, it is worth remembering that you can always contact the entity to assess options regarding the terms, be it an early repayment or a deferment, according to our economic situation at all times.

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