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Repayment of Installments in Payday Loans

Kelly Toms: Repayment of the Rate on Payday loans

Anna Christie: Repayment of the Rate on Personal Loans

The repayment of the installments takes place via RID, or debit from the current account of the applicant of the Payday loan. The charge is monthly. It is important to check, in the days prior to the payment of the installment, that there is availability on the current account in order to avoid delays in payments that would cause negative reports in the databases.

The RID mode is the most used and is to be preferred as it guarantees the bank a greater punctuality in the payment of installments, avoids the customer having to remember monthly to pay inconvenient bills and allows credit institutions to maintain lower rates compared to loans with repayment by bulletin, considered to be the most risky.

Early repayment of installments

Early repayment of installments

The law has established that it is always possible to extinguish the loan before the expiry date originally set by the loan agreement. To exercise this right, the customer must pay the residual capital, to which a penalty can be added by law not exceeding 1% of the financed amount.

Generally, attached to Payday loan contracts, there is a sheet indicating the loan amortization plan. It is possible through the amortization plan, to verify the maturity due to the residual capital of the Payday loan, and therefore to know how much remains to be repaid and how much should be paid to extinguish the loan in advance. In addition to the amortization plan, it is possible to request from the financial institution, even an extinct count on which the financial institution specifically indicates the amount to be paid to extinguish the loan early, and any unpaid (unpaid) installments. The IBAN of the credit institution necessary to proceed with the extinction transfer is also indicated.

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