Reputed to be too expensive, revolving credits are now used with caution. According to market leaders, one in two borrowers has repaid their revolving credit in less than two years. What are the prepayment allowances for this type of loan?
Revolving loan: borrowers repay faster and faster
26% is the number of borrowers who have chosen to repay their revolving loan in less than 24 months according to the latest publications.
By definition, credit revolving is usable at any time, but matched in case of use of a rate of interest too high compared to the rates means a loan staff classic.
With repayment periods of between 6 and 60 months, the credit revolving deemed too expensive and renowned as one of the main causes of debt and bad – debt.
With such a reputation, the people do not want to engage in this kind of funding and use it now with more precaution by opting for its repayment anticipated since longer duration of repayment is long, plus rates are important.
Revolving loan: lenders want to adapt, customers can buy it back
Despite its high interest rate, revolving credit remains one of the consumer loans most requested by the people thanks to its availability and its repayment duration.
To win back a customer who distrusts, the lenders want to give some oxygen to this kind of credit by adapting it to the expectations of customers with particularly deals that allow fund a small project or contingencies without exceeding its maximum allowed.
As for the customer, the revolving credit can be bought back with other credits in progress ( personal, consumption, real estate ).
The combination of loan revolving drives a refund anticipated to repay all or a portion of its credit revolving before its expiry initial fixed in the contract of credit.
Renewable loan redemption and prepayment penalties
Repay its loan to the consumer or property of so early via a repurchase of credit, it is doable. For a credit revolving, this banking operation results in no compensation of reimbursement anticipated.
The law on consumer force provides facilities for reimbursement by anticipation total or partial of loans renewable without penalty at any time.
However, it is possible that some banks ask for compensation especially if the amount remaining due is greater than 21 000.