If you are thinking about requesting a loan, mini- loan or microloan, one of the factors that you must take into account is the financing of the borrowed money as a down payment. The commissions are a fundamental element so that the payment of the loan is not a problem.
Payment of commissions
When we look for financing for any project, we know that we must go through the toll of requesting a loan and pay the consequent commissions, an amount that significantly increases the capital to be repaid.
Some people consider resorting to a loan to pay comfortably, but the truth is that this can increase the final amount of the loan in an important way. Knowing the pros and cons of financing commissions will make you see if it really is an operation that comes to mind.
The reasons to finance the commissions
If we ask for a personal loan, the most usual thing is that we find ourselves with the need to pay formalization fees, which in some cases even amount to two: the study and the opening. This can make the first installment to repay the loan in several hundred euros more expensive.
Not everyone can afford this important outlay of money right away, so many entities give the opportunity to finance these commissions. That is, distribute the money to pay between all monthly payments. Undoubtedly, this is very comfortable, but before accepting this possibility we must take into account its repercussion in the general financing of the loan.
The cost of funding commissions
Avoiding the economic effort involved in the payment of formalization fees in the first installment of the loan payment is really tempting, since it avoids unbalancing the domestic economy. This is, without doubt, a positive point to take into account to decide for this type of payment.
This convenience, however, should not make us forget that this payment method will also generate a plus on the commissions we have included in the financing. Does this mean paying a much higher amount of money? A priori, the difference between paying the financing or not of the study and opening fees does not have to be a very large figure, but it is true that we must take into account the rest of the variables of the loan, such as the amount requested, the term of return, as well as the commissions that are included in the financing. Therefore, before opting for this option it is advisable that we calculate the final cost of financing the commissions to know if it really comes to mind.
In short, the fees to pay for the loan application are a financial pitfall that we can try to solve in various ways.