There are more and more loan offers without commissions on the market. Hearing about such products, we usually count on the possibility of borrowing money at favorable pricing conditions. Lack of commission does not mean, however, that the loan will be the best choice.
Commission is one of the cost components of almost every loan obligation. Under this concept there is a remuneration for the bank accrued for the mere fact of borrowing money. The fee in the form of a commission may be charged in advance or added to the monthly installments of the obligation.
Many banks avoid displaying a specific commission in their advertising materials, replacing this information with an approximate value or a percentage range. The particulars expected by the client fall only during a meeting with an adviser at the bank. Although the maximum loan costs are regulated by law, the option of calculating commissions gives banks a wide margin of maneuver in the area of shaping the final costs of the liability. Therefore, the more attractive offers seem to be those in which banks clearly communicate that in the case of their loans, the commission is 0%. At first glance, it is a significant saving. Meanwhile, the lack of commissions, banks can bounce back elsewhere.
Insurance and interest, i.e. other loan costs
In addition to commissions, the final costs of credit are also affected by such items as the interest rate or the need to purchase insurance.
The upper limit of the loan interest rate is also imposed by law (currently it is 10%). Within this limit, banks may, however, freely manipulate the amount of interest. Nothing, therefore, prevents the loan from being commissioned with a maximum interest rate.
The choice of a loan without commission may also involve the necessity to conclude an additional insurance contract. Although having such protection is often a great protection in case of unexpected problems with repayment, it is worth remembering that insurance can significantly increase the monthly installment of the loan, and thus also its final price. So if the costs of the commitment are a priority for us, it may be more financially advantageous to choose a loan with a commission or a higher interest rate, but without the need to purchase compulsory insurance.
Comparison of the necessary condition
When choosing a loan without commission, we should pay special attention to interest and insurance issues. To assess whether or not we overpay it is good to compare the loan offer without commission with other products available on the market. This analysis will help special loan comparison websites that will tell us which solutions can be more beneficial for us. Of course, we will get the final price of the loan after a personal meeting with a consultant, however, the offer suggested by the comparator is a kind of hint, which the bank is worth visiting in the first place (kg)