Consumer Short term Loan: Your Options Now

Before taking out a consumer loan, the loan provider must, among other things, inform you. A simple visit to makes things perfect for getting the right loans.

  • The total amount of credit
  • The borrowing rate
  • The term of the loan
  • Percent annual costs (APR)
  • The total amount you have to pay back
  • loan Type
  • Terms to repay the loan
  • Whether there is a right of withdrawal
  • Consequences if you are unable to repay the loan

Information in the marketing of consumer loans

  • Loan providers that market consumer loans and display numbers or interest rates in their advertisements should provide you with a number of standard information.
  • You will need information on:
  • Debt rate – and whether it is fixed or variable
  • The term of the loan agreement
  • Percent annual costs (APR)
  • The total amount you have to pay back, as well as the size of the installments
  • The total cost of credit
  • The total loan amount

The information in the advertisement must be accurate and must be clear, clear and prominent using a representative example. The information must not be misleading or incomplete.

Consumption Loans: You have a right of cancellation of 14 days

When you take out a consumer loan, you have a right of withdrawal of 14 days. The deadline is from the day the loan agreement is concluded or the day you receive the terms of the loan agreement. If you want to cancel your loan, you must notify the loan provider before the deadline and also follow the instructions you have agreed with the loan provider when you took out the loan.

It is a good idea to undo in writing so that you can prove that you have notified the loan provider. Remember to get documentation that the message has been sent. It’s enough that you sent the message before the deadline expires. You must repay the loan amount to the provider within 30 days and any interest for the period from the time you entered into the loan until you repaid it.

The loan provider must repay any fees paid by you at the time of the loan. Please note, with a free loan, that the loan provider may charge you an amount you regret. In such a case, the loan provider must have notified you of the amount of the loan before entering into the loan agreement. The amount should be reasonable in relation to the amount you borrowed.

Can your economy handle a consumer loan?

If you are unable to repay the consumer loan within the deadline, it may, in the long run, become expensive for you in installments and interest. For some loans, the deadline for repaying is very short, e.g. 14-30 days. Can your finances manage it?

What does consumer loan cost?

Check out what you have to pay in total to borrow the money and what you have to pay each month in installments.

The consumer loan may be free for example for 30 days. But it is a good idea to investigate what it costs if you cannot repay it quickly and therefore have to pay it off over time.

Is an overdraft or a cash credit cheaper?

Maybe a bank overdraft or a bank overdraft is cheaper if you can’t pay back the consumer loan on time.

Wilber Pelligra