When choosing a bank for lending in their city, people are already more carefully and thoroughly approaching the selection, studying reviews of various financial institutions. However, banks tirelessly continue to come up with all sorts of tricks to get as much profit as possible from customer service.
One of the most common ways to generate income from customer service is the bank commission, charged by the bank when carrying out operations, especially when lending.
So what are these fees? Let's look at some of those that the bank uses when lending to individuals:
* Application review fee – paid in any case when submitting an application, even if the bank refused to issue a loan;
* Loan agreement (or account) service fee – charged monthly from the client who has entered into a credit transaction. It is calculated either from the balance of debt or from the initial loan amount, or is set as a fixed amount. This fee is the most common and most contributes to a significant increase in the cost of the credit product;
* Cash disbursement fee – paid once when taking out a cash loan, when issuing a credit card, and each time when withdrawing funds by card from ATMs;
* Fee for drawing up a security agreement (surety, collateral) – payment is made on the day the agreement is signed;
* Early loan repayment fee – charged upon early repayment and precludes the possibility of cheapening the loan, given its rapid repayment.
When choosing a bank for lending, you should take into account the presence of commission fees, both in the loan agreement itself and in the bank's basic tariffs. Since most banks provide for hidden commissions precisely in the tariffs, which not every client usually gets acquainted with when applying for a loan, preferring the loan agreement.
Do not forget that it is better to foresee everything in advance to avoid unpleasant surprises in the future. If you still took out a loan with 'strict conditions', try to pay it off as soon as possible. And if you are only planning to, then look for offers without bank fees.
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