If you have a need to take a bank loan, you need to determine not only the amount that you are going to borrow from the bank, but with the term, which will need you as the borrower to repay the loan.
At first glance, the question of the maturity of the loan is not as important, because in the foreground stands the borrower to implement their plans, so he takes care to minimize the risk of failure to fund it on a credit application. To do this, the client collects the documents determined the loan amount, the method of cashing it. However, the definition of the term loan - instant fundamentally important and crucial because it determines not only the financial burden on the payer in the coming months or years, but the amount of the overpayment for the loan. Correctly determine for what period the debt will be repaid - easy, given the highlights of credit risks.
Lending period is the time between the date of receipt of the loan and the maturity date of the loan, together with interest. Many payers believe that the redistribution of payments for a long time is more convenient, as you will need to pay a monthly lower amount, and for the family budget this burden becomes too noticeable. Other clients, on the contrary, believe that to get rid of the burdensome debt should as quickly as possible and are willing to pay the full amount immediately, "tightening the belt" and minimize their consumption. Both positions are extreme and have their downsides. It should take into account the time that the interest rate on the loan increases with the period of its maturity. On the other hand, trying to determine the minimum period of the loan, the client does not expose you to cope with its tasks. In the end, it risks to enter the late, spoil your credit history.
The stated amount of the loan banks grant, usually for a period of months to 5 years - it depends on the proposed lending program. Defining the maturity of the debt, the bank takes into account what the monthly payment may make the customer without significant damage to its traditional way of life. Typically, this amount does not exceed 40% of the monthly earnings of the client. In some cases delivery can be established, in the amount of 50-60% of the average monthly income of the family.
If your salary, for example, the 40 th. Rubles, the monthly payment on your loan will be determined in the amount of 16 thousand. Rubles. Suppose the bank lent to the borrower 160 thousand. Rubles. Dividing this amount by the monthly payment, obtain the optimal loan term - 10 months. But keep in mind also that it is necessary not only to return the loan, but the interest on it, as well as various commissions. So pay 16 thousand. Rubles have not 10 months and longer. Therefore, you will be advised to specify as the loan repayment period is 1 year, if not more.
If a customer expresses a wish to reduce the size of monthly payments, then this period will have to increase. However, as has been said, with the increase of the crediting period and increases the amount that the bank will have to pay a premium for the service.
If the client specifies the minimum term of the loan, in order to minimize overpayments, the bank may consider it risky borrower and even to refuse registration of the loan. For this reason it is best to specify in the application the optimal number. If the borrower will be free money, he can pay off your debt ahead of schedule, in accordance with the conditions prescribed in the contract.