Loans are becoming an increasingly popular banking service. But it is far from always possible to obtain financing at a favorable interest rate. In this case, you can remedy the situation by reducing your loan overpayment in various ways.
Instructions
Step 1
Repay the loan ahead of schedule. To do this, first find out the conditions regarding such a settlement with the bank under your loan agreement. It is possible that your bank is charging a commission for such an action. In this case, calculate whether the remaining amount of interest will actually be less than the commission declared by the financial institution.
Step 2
Come to the bank with the required amount of money for early repayment of the loan. Most often, you will be required to pay off the entire remaining amount, excluding interest. But some banks allow the possibility of partial early repayment with a corresponding change in the payment schedule. Deposit money into the loan account, and then write a statement about early termination of the loan agreement. It is also advisable to get a certificate from the bank that there is no debt for you.
Step 3
If you do not have enough money to repay the loan early, try to get financing for on-lending. Such a loan is designed specifically to close an existing one and is issued at a lower interest rate, due to which you get benefits. You can re-credit both in the same and in a new bank. Information about such programs is posted on the websites of financial institutions and in their advertising materials. Usually, for refinancing, the same documents are required as for a regular loan - a passport, an income statement and a copy of a work book. If your application is approved, the money will not be given to you in cash, but will be transferred to an account to close the existing loan. But if you received an amount larger than you need to pay for the first loan, you can get some of the money in your hands.
Step 4
When you repay your loan on a repayment schedule, try not to be late. Otherwise, the bank may charge you various commissions that will increase your next monthly payment.
