How do you choose to repay the loan: in equal or decreasing installments?
When you want a loan, you can choose, right at the beginning or at any time later, to repay in equal or decreasing installments. A few details for the best possible decision:
You get an idea of what the loan rate is
It is calculated based on the chosen product, the amount and the desired crediting period, as well as the type of interest rate (fixed or variable).
Repayment method
Can be changed whenever you want, during the loan. Depending on the option that best suits your budget, you decide whether to switch to equal installments or, as the case may be, decreasing installments.
Repayment with decreasing installments
It assumes a higher payment rate in the first period of the loan term and a descending evolution until the end of the repayment period, and the total interest paid is lower than in the case of repayment through equal installments.
The explanation is this: it is calculated by applying the interest rate to the balance, and as the loan balance decreases through principal repayment, the interest portion of the installment begins to decrease.
If you choose to repay the loan in equal installments
The value of the monthly installment is the same every month. The amount of the monthly installment is constant throughout the entire loan repayment period, and the total interest paid is higher than in the case of repayment through decreasing installments.
The amount you can borrow
It also depends on the degree of indebtedness provided by the regulations in force – regardless of the repayment method.
How can you request switching to decreasing/equal installments
We are waiting for you at the bank, where we will explain the solutions you can choose and present you with an alternative repayment schedule, following which, based on your decision, we will carry out a financial analysis to verify compliance with the new loan conditions.
After the analysis you will receive the final resolution if you meet the legal criteria regarding the degree of indebtedness, and if you choose to change the credit repayment method, please schedule an appointment to come to the bank to sign the additional act to the credit contract that formalizes your decision.
