Everyone wants to make the loan payments as low as possible. Many people mistakenly believe that only interest rates affect the cost of this commitment. However, this is not all. So what makes up the loan installment ? Here is the most important information on this topic.
It should be emphasized that banks must earn on loans granted. I think it’s a matter of course for everyone. After all, they are not charities. It is no wonder then that the interest rate is relatively high. It must be higher than the interest rate on, for example, deposits. Interest rate alone is not everything. Of course, this parameter largely affects the final installment of the loan . Of course, the capital raised is important. In addition, you must consider the repayment period. The shorter it is, the larger the installments are. If someone chooses a longer repayment period, they have a chance to pay smaller installments every month, but the liabilities are more extended in time.
It should be noted that banks charge fees for their work. We are talking here about commissions and preparation fees. A loan installment sometimes also includes insurance. There is no shortage of people who decide on such a solution. They know that in the event of an unexpected accident, illness, etc., they will have something to pay off their monthly obligations. It is also worth mentioning the spread, which is charged on loans in foreign currency. It should be emphasized that it is the difference between the exchange rate of the Polish zloty and, for example, the euro, etc.
How to search
No wonder then that some loan installments are very large. What can you do to pay the least amount possible? You need to take a moment to compare the options available on the market. It is worth choosing good Polish and foreign banks that have attractive financial conditions. Then the loans taken out will not involve as much expenses as it might seem at first glance. It is also very important to take into account such a parameter as rrso, i.e. the actual annual interest rate. It can be said that this is the best indicator that determines all the costs that make up the loan; and thus the installment . There are currently no lack of credit comparison websites. You can sort the available information in this respect, and choose the loan that will be the most attractive in financial terms.