In the event of early redemption or rescheduling of a loan from Lite Lender bank, some things should be considered. Find out here how you should proceed and which conditions and contractual terms are important.
A clever rescheduling or consolidation of several current loans can save money and accelerate the redemption – or stretch it and create additional financial leeway. Not every bank grants the possibility of early redemption unlimited and free of charge – we will examine the Lite Lender bank offer for you.
Well-planned debt restructuring: exploiting potential
The early repayment of a current loan at Lite Lender bank only makes sense if you have to pay significantly less interest for the new financing or if you can extend the liability to a term that makes repayment easier for you. It is therefore necessary to compare the costs incurred in advance with the benefits to be achieved in order to achieve a really effective solution:
- What is the saving you can achieve through the cheaper effective interest rates?
- What is the effective additional effort that you would have to manage with a longer term?
But this is only one side of the coin, the contractual regulations of Lite Lender bank represent the other, which you should urgently observe.
Special repayments and early redemption at the Lite Lender bank
Right in advance: The Lite Lender bank provides restrictions on all repayments with regard to special repayments or even a complete early redemption of a loan – but to different degrees. If you can repay the current balance of an installment loan up to 80 percent free of charge, the remaining 20 percent will incur additional costs.
This allows you to compensate the Lite Lender bank for the loss of interest income: with one percent of the remaining amount or 0.5 percent if the remaining term is less than 12 months. As a precaution, you should have an offer made, as a rule of thumb for weighing up a debt rescheduling, these calculations are sufficient.
The rules for real estate loans are even more restrictive: they can only repay ten percent of the nominal loan amount per year free of charge. So it’s important to study the contractual details carefully before considering debt restructuring.
Important prerequisites: Prepare the replacement comprehensively
In order to really improve the financial situation, you need a suitable financing offer in addition to the possible prepayment penalty of the Lite Lender bank. This in turn presupposes that your credit rating is positive and that you have a sufficient and secure income.
So research carefully the current conditions in order to select a suitable provider and to make a preliminary credit request. You should definitely state that you are going to reschedule: your liquidity will then be assessed differently.
In contrast to a purchase on credit, you replace existing obligations, so there is no additional burden. The new lender can expect your financial situation to improve in this way – an important argument for the credit check.
Procedure: Redeem the loan at Lite Lender bank ahead of time
The following procedure is recommended to ensure a smooth process:
- First check the current conditions of the Lite Lender bank and any prepayment penalty that you have to pay for a complete repayment of your loan.
- Use the loan comparison to get a quick and effective overview of the loan terms of other providers.
- From the difference and taking into account the prepayment penalty, determine the benefit that can be achieved by rescheduling – either as and / or as a more convenient monthly rate over a longer term.
- Make a preliminary request to the bank in question, you can do that directly from the loan comparison.
- Agree with the new lender to process the debt rescheduling, who can take care of all the necessary steps for you by submitting a transfer authorization.
Debt cleverly: generate benefits
It will not be worthwhile in every case, but it can certainly lead to considerable relief: You can also reschedule a Lite Lender bank loan if the bottom line outweighs the benefits. Make sure in advance that you incur the prepayment penalty from Lite Lender bank and the conditions for the new loan.