When people talk to friends or family about the idea of taking out a loan, they are usually provided with lots of well-intentioned advice to help them get the borrowed money exactly for what they want to spend it. Another aim of this support is that the loans can be repaid without problems and do not become a financial problem. The private loan with special repayment is almost always at the top of the list.
Payday loan with special repayment: What does that mean exactly?
A Payday loan does not mean, for example, that this loan is granted privately, but indicates the intended use: This is private, which means in concrete terms that the borrower can do whatever he wants with the money. There are other forms of credit that are earmarked, such as a car loan or a construction loan. With a Payday loan, you can fulfill wishes such as a trip or a new television. Special repayment means that there is a clause in the loan agreement that you can repay the loan early if you have the necessary funds. If, for example, you have made an inheritance, you could use it and repay the Payday loan with the special repayment.
How do you get a Payday loan with a special repayment?
The good news is that every Payday loan granted by a German bank and organized as an installment loan includes a clause for special repayment. The legislator has prescribed to grant this possibility. The bad news, however, is that he didn’t specify it. This means that the banks are free to decide whether they offer special repayments at all times or only at certain times, or whether they are subject to charges or free of charge.
If you are thinking of making use of the special repayment, you should calculate beforehand exactly whether this actually means a financial advantage, because if the costs that the bank estimates for the special repayment are higher than the interest that is due has to pay his loan, then even with a Payday loan with special repayment, the normal repayment makes much more sense.