The repayment of a cash loan is the borrower’s obligation under the contract. This document defines the repayment schedule and also sanctions the amount of loan installments. It is in the contract that you should look for the rules for repayment of the bank loan. In most cases they are the same for every customer. What are the rules for repayment of a cash loan and what should you remember to have no problems with your bank?
Cash loan repayment on time
The first basic and obligatory rule for paying off debt in a bank is its timely payment. The dates of paying the next installments are specified in the schedule, which is attached to the contract. Exceeding this deadline has serious consequences. Already on the first day after exceeding the deadline, banks and loan institutions may charge penalty interest, which significantly increases the cost of the debt incurred. Interest, however, is only the first of the serious consequences of non-repayment of a cash loan. Hard late debt collection may also be applied to a late borrower, including referral to court and bailiff enforcement.
If you want to properly prepare for repayment of your loan check in advance how much the installments will amount to you. To do this, use the loan installment calculator.
The amount of cash loan repayment
People who take out a loan with a variable interest rate must take into account that installments are not always the same amount. They will be influenced by variable interest rates set by the NBP (National Bank of Poland). The lower the rates, the lower the loan installment. They are updated once every 3 months, in which period banks update the amount of cash loan repayment. See what else is worth knowing about the loan interest rate.
Repayment of a cash loan to a bank account
The cash loan is always repaid to the bank’s account. Most often, banks require repayments from their own account, which is provided in the loan application. Loan installments can also be settled by postal order, payment at the bank’s counter or setting automatic withdrawal of money from the account – this is a convenient option if you have an account at the same bank where you have a cash loan.
Cash loan repayment and financial problems
Before granting a cash loan, banks carefully check the financial capacity of the future client. This is why most people usually have no problem with timely payment of installments. However, if they do, the cash loan repayment is at risk. The best solution is to contact the bank immediately and set up an action plan. Banks can offer clients many financial problems, e.g. credit holidays, reduction of installments or extension of cash loan repayment time. Here you can find out what to do if you have a problem paying off your loan.