However, it is obvious that borrowing money requires you to give back a sum greater than the sum of the loan. This is even related to the loan interest rate. But what about additional fees? Do they exist and how much can they be?
Unfortunately, when deciding to take out a loan or credit, we must be vigilant, because both banks and financial institutions providing loans have the right to introduce additional fees that we have to pay outside the interest rate on the loan. There are really a lot of them.
Below we list the most common of them. However, it is worth remembering that not every bank requires all additional fees from its clients. It is, therefore, crucial to carefully check the offers and read the contracts before signing them. It is also a good idea to consult a professional financial advisor who will draw your attention to possible additional costs.
Commission for considering the loan application
This is one of the additional fees that are encountered less and less often. Unfortunately, we can still come across offers from banks and private loan companies that require their clients to pay a fee for processing their application. It is charged once or added to the interest rate on the loan and repaid together with monthly installments.
Commission for granting a loan
This is another additional fee that we can face when taking out a loan or a loan. Still, a large proportion of banks require customers to pay an additional fee for transferring funds to the account or transferring them to their own hands.
Early repayment commission
Many of us think that paying off the whole loan or credit in advance can save us because we will avoid interest in each installment. Nothing could be more wrong. Banks and financial institutions hedge against losses by imposing on their clients an obligation to pay a commission for early repayment of a loan. Most often it ranges from 1 to 5 percent of the amount of capital repaid.
House service fee
This additional fee usually does not apply to cash loans. However, it appears in the case of non-bank loans. Companies that offer their customers the collection of further installments in their homes do not do it selflessly. This fee can significantly increase the cost of paying back the loan – so keep this in mind.
Commissions of banks and financial institutions are covered by the law
Fortunately, all additional fees that are associated with taking out a loan or credit are not voluntarily set by banks or loan companies. The provisions of Polish law clearly specify that they cannot exceed 25 percent. loan (permanent part) and 30% loan value per annum (variable part resulting from the length of the loan).
Thanks to this, the additional fees are not as severe as a few years ago before the amendment of the Act on Financial Market Supervision.