Are you going to access one of the Payday Loans ? Well, we have reviewed the information sheets and product conditions to be able to tell you everything – absolutely everything – about the characteristics of these loans. Here are some reference information and – perhaps – something you didn’t know.
Payday Loans, in short
The payday loan of KP Bank is a fixed and predetermined interest rate loan, which makes it possible to flexibly finance the most important projects of one’s life, for oneself and one’s family. All with zero fees for practical opening and zero installment fees. The amount that can be requested can go up to 10 thousand euros, while the amortization plan can go up to a maximum of 6 years, or 72 monthly installments.
Some examples of Payday Loans?
Using the calculator of the Payday Loans website, we have done some simulation on the actual cost of the loan. For example, we simulated asking for a loan of 5,000 euros, to be repaid in 24, 48 or 72 installments. In the event that the amortization plan consists of 24 monthly installments, the TAN is 6.90%, with an installment amount of € 223.64 and an APR of 7.56%. Extending the 48 month reimbursement program, the TAN remains the same, while the APR drops to 7.41% thanks to the possibility of spreading fixed costs over several installments. The installment is 119.50 euros. Finally, further extending the amortization plan to 72 monthly installments, the amount of the installments will be equal to 85.01 euros, with an APR of 7.35%.
Interesting is the ability to add to financing an insurance policy against the most nefarious hypotheses of job loss, disability or death. In the first hypothesis of a repayment program in 24 months, the installment went from 223.64 euros to 237.05 euros (about + 14 euros); in the event of repayment in 48 installments the amount rises from 119.50 euros to 126.67 euros (approximately + 7 euros). Finally, in the case of repayment in 72 installments, the amount rises from 85.01 euros to 88.83 euros (about + 3.8 euros).
We have also hypothesised a request for a larger loan of 10 thousand euros, with repayment at 60 months . In this case the amortization plan provides for the payment of fixed and constant installments of € 193.59, with a TAN of 6.90% and an APR of 7.25%. In case of choosing a cover against hypothesis of loss of employment, disability and death, the installment amount rises to 202.30 euros, with a price increase of just under 9 euros.
When calculating the APR, bear in mind that the Payday loan has the good habit of having few “extra rate” costs. The main expenses refer to collection commissions at branches of the bank for 8 euros, production costs and sending a contract confirmation letter of 1 euro, costs for sending communications at the request of the customer between 5 and 10 euros, costs for sending communications periodicals to customers for 1 euro, stamp duty or substitute tax on the contract and on periodic communications to customers according to the tax laws in force, debited on the first installment.
Payday Loan: What happens in case of delay
In the event of late payments, the consumer will be charged default interest at a rate of 15% per annum on past due installments.
Finally, we remind you that at any time it is possible to access the early repayment, returning the credit even before the expiry of the contract, in whole or in part. The indemnity cannot exceed 1% (one per cent) of the amount repaid in advance, if the residual life of the contract is more than one year, or 0.5% of the same amount, if the residual life of the contract is equal to or less than one year. In any case, the compensation cannot exceed the amount of interest that the consumer would have paid for the remaining life of the credit. Lastly, no compensation is due in the event of early repayment made in execution of the insurance contract intended to guarantee the credit, early repayment concerning a redemption opening contract and finally if the early repayment relates to the remaining internal debt and is equal to or less than 10 thousand euros: a clause which should therefore provide for the substantial free of charge for all holders of this Payday loan .