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What types of commissions do consumer loans have?
Personal loans can include a wide variety of commissions, although everything depends on the criteria of the bank that grants them. Depending on the way in which they are charged or the concept of said cost, we can divide them between formalization commissions and amending compensations:
- Opening commission: this is what they will charge us to access the contracted credit. It is a commission of formalization since we will have to pay it at the time of contracting. It is usually a percentage between 1% and 3% with a minimum amount.
- Study commission: it will be what we are charged for studying whether our application is viable or not. It is also a formalization fee and, like the opening fee, consists of a percentage between 1% and 3% with a minimum amount.
- Notary fees: this is what they will charge us for signing the contract before a notary. This cost usually depends on each notary and each entity. It is more common in larger fast personal loans because they involve a greater risk for the lender.
- Early repayment: this is what they will charge us for returning part or all of the credit ahead of time. By law, this commission may not exceed 1% if the term is greater than 12 months or greater than 0.5% if this term is less than one year.
- Change of contract: if we want to make any change in conditions such as increasing or reducing the term, increasing the capital available or reducing monthly payments, the entity may charge us a commission for the procedures to be performed.
Normally, when we refer to loans without commissions we refer to the credits that do not include formalization commissions since they are the ones that the entities can eliminate and those that will be paid if or if independently of the actions that we do later with the personal loan online, that is, loans without formalization fees may include a prepayment commission, for example, which will only be applied if we decide to advance the repayment of part or all of the credit.
What personal loans without commissions exist?
Any type of personal loan can be without commissions since it will depend to a great extent on the offer of each lender. In this way, it is possible to find all types of personal loans without collateral and without commissions. Here is a list of the main types of financing that we can find without additional costs:
- Quick mini-credits: these are loans granted mainly by private equity financial entities. They allow us to get between 50 euros and 1,200 euros to be able to face small unforeseen events that arise unexpectedly. They are reimbursed in a maximum of 30 days in a single total payment. Its cost is around 1.1% per day, that is, 33% per month and they never have commissions. In addition, they do not demand to be clients with a minimum of seniority or contract related products to be able to access them.
- Personal loans: they are consumer loans designed to finance different projects. They allow us to obtain amounts from 3,000 euros and up to 60,000 euros, depending on the purpose we want to give. Its cost is around 8% APR and is reimbursed in monthly installments. They can have formalization commissions and links.
- Consumer loans: loans granted by non-financial entities such as department stores to finance the purchase of their higher-value products such as telephones, computers or household appliances. These loans tend to have fairly low-interest rates since the objective of these companies is to encourage purchases in their establishments, so it is not common for them to have commissions.
Each type of personal loan will have different characteristics that will make them more or less adequate for the purpose that we want to give to the financing we are looking for. This is why it is important to compare different offers to choose the credit whose characteristics best meet our needs.
How personal loan fees are paid
If a personal loan has formalization fees (the opening and study fees) these will be paid together with the first repayment installment. That is, the first monthly payment will consist of the reimbursement fee plus the costs of the commissions.
In this way, if we hire a loan of 5,000 euros that has an opening commission of 3% (150 euros) and one study of 1% (50 euros) we will have to pay, in addition to the monthly fee, 200 euros more.
To see how it would affect to contract loans without commissions or having to pay the commissions of the contracted credit it is advisable to use simulators of personal loans. This way we will know exactly what the costs will be that we must assume each month.
It is important to bear in mind that commissions will NEVER be paid before they transfer the credit money to our account, whatever the type of personal loan that we hire. If they require us an advance payment, we must doubt the legitimacy of this type of financing since no serious entity does this type of practice.
Can I finance the loan commissions?
Yes. Many entities to fight with offers of personal loans without commissions decide to offer the possibility of financing their cost. As we have seen, the commissions must be paid along with the first reimbursement fee, resulting in a greater economic effort for us. For this reason, several banks offer the option to finance the costs of the commissions within the loan and pay their cost within the monthly payments.
This option is more convenient since we would not have to make a large payment in the first month, but since the cost is included in the loan capital, the commissions financed would also generate interest that we will have to pay, making these commissions more expensive.