The nominal interest rate (TIN) is the aspect that most attracts the attention of a loan. And it is understandable, since it is what determines, to a large extent, what the amount of your monthly installments will be. However, it should be kept in mind that a low interest loan is not automatically cheap, because these products can include other expenses in their fine print that add to the final bill.
According to the financial comparator HelpMyCash.com, if a person considers taking out a loan, it is advisable to read the conditions of the offer carefully, since it must be indicated there if the credit includes other expenses in addition to the interest rate: commissions for opening or study, insurance premiums…
Commissions are the most well-known additional expense. Basically, they are charges that the financial company can charge the holder of a credit for providing certain services or for carrying out certain procedures. The most common are opening and study, which must be paid when signing the contract and whose cost is usually between 0% and 3% of the amount lent.
There is also a commission for repayment or early repayment, which is a compensation that the lender can charge if the client pays his loan in advance (partially or totally). Its price is regulated: it cannot exceed 1% of the amount advanced, although this percentage is reduced to 0.5% if there is one year or less left before the credit repayment period ends.
According to HelpMyCash, not all financial companies charge these commissions. In fact, entities that operate exclusively online do not usually include them in their loans, although it is always a good idea to read the fine print of their offers to make sure. In any case, the existence and price of these charges must be indicated both in the pre-contractual information of the loan and in your final contract.
On many occasions, when contracting a loan, other products are also acquired, either to access financing or to lower interest rates: accounts, insurance, cards, pension plans… According to HelpMyCash, it is very important to know the price of these services. additional, as they can trigger the cost of credit.
Let’s say, for example, that a person needs 10,000 euros to repay in up to five years and requests financing from two entities: one that offers a loan with a rate of 6% TIN and another that has a loan at 7% TIN. The fees to be paid with the first proposal would be about 193 euros per month, while with the second one would have to pay about 198 euros per month.
