Loan without commissions and with interest

Financial institutions compete in offering newer and newer promotional offers. Recently, in the case of cash loans are especially popular proposals canceled the commission for granting a loan, or a reduction in the interest rate. In which case choose the solution?

zero commission

Choosing a cash loan with zero commission will be most beneficial in the case of loans and cash loans with relatively short repayment period. This is a result that borrowed from a financial institution capital will be repaid by us quickly, and thus, use the option of lowering the interest rate goes up here with a purpose. Why? Since the savings resulting from such omissions ośmioprocentowej preparatory commission will be higher than those achieve by reducing the interest rate by several hundredths of a percent. The remuneration will be levied on borrowed capital for just a few months, so the difference of total interest savings will be relatively small and will not be able to exceed the amount saved under the omission of commission for granting liability.

lower interest rates

On the other hand, to minimize the interest rate will be beneficial in the case of loans with extended repayment period. In contrast to loans with a short repayment period for long-term liabilities are a major component of the cost of the interest is calculated on the basis of the interest rate used. It will minimize the borrowed capital will be worked out less interest for a long time, that our savings, compared with options of zero commissions, should be proportionately higher.

The best solution, however, will in any case be possible low interest rates and a maximum of reduced or zero commissions. This will allow you to achieve the greatest savings. We should remember that it is always in a conversation with a financial institution, we can negotiate the terms of the loan, or a loan and ask to calculate the total cost of the loan with the occasional ratio of interest and commissions. Only in this way will we be able to take advantage as possible, but most of all a conscious decision