What are the consumer loan costs and How much?
When it comes to consumer loan expenses, some types of expenses will come to mind. While the loans are taken, a contract is signed between you and the bank. This contract also includes items to be spent on credit.
These items show the expenses you will make in the loan. The consumer loan aims to meet the cash needs of consumers in many areas from vehicle to marriage.
The low cost and easy-to-use credit have extended the use of general-purpose loans. Moreover, the length of the maturity ratios determined according to the loan you get in this loan may increase your payment opportunity.
Costs in Consumer Loan?
Housing loan expenses differed in 2019 and other years according to consumer loans. The reason for this is that housing loan has a much more difficult and sophisticated process.
However, a general-purpose loan comes with many facilities both in terms of process and payment. Costs in consumer loans are much more affordable than other types of loans. You can easily see that it requires much less expense, especially compared to housing and vehicles.
However, the disadvantage here is that the bank takes the consumer loan expenses from the loan amount with an automatic deduction. Therefore, you cannot get the loan amount you want.
What Costs are Collected in Consumer Loan?
When it comes to consumer loan costs, it is possible to officially mention 2 cost titles. These titles are:
- Credit allocation fee
- Insurance costs
As you will come across. Regardless of which bank you borrowed from, what 2 terms are likely to come across you. Moreover, unlike other loan types, these types of expenses will automatically decrease from the loan amount you will be given. This will prevent you from drawing your money exactly the way you want.
What is the Credit Allocation Fee?
The question of what is the loan allocation fee, which is similar to the question of what is the file cost, appears, especially in general-purpose loans. As with other loans, it is possible to collect a certain fee from this loan type in accordance with the BRSA regulation. Although the amount allocated is 0.5 percent in general, it is possible to change. Some banks offer general purpose loans without loan allocation fees, but it is noteworthy that the interest rate is higher in these loans.
Insurance Costs in Consumer Loans:
When it comes to questioning the loan file expense, another expense that comes to mind is insurance expenses. Insurance is mandatory for some types of credit.
Although there is no such requirement in consumer loans, some banks may request insurance as per their agreements. In such cases, insurance costs will arise.
Especially in cases such as death, this insurance, which includes banks’ guaranteeing debt, may vary according to the characteristics of the customer.
Loan Costs and Personal Loan:
Many issues ranging from housing loan insurance fees to consumer loan allocation fees are included in loan expenses of loan types. The interest and payment plan determined in each loan type are different.
However, in general, the general-purpose loan is determined according to the total cost rates. While calculating the total cost ratio, it is possible to mention the following 3 terms:
- Interest rate
- Credit allocation fee
These 3 terms play an important role in determining loan costs. The main consideration is the total cost while also calculating the credit insurance costs and also considering all the other costs.
Although the loan offered to you includes favorable interest and long terms, the cost rates included in it may change your mind. In this respect, it will be important to look at the total cost ratio when choosing the most suitable consumer loan.