Loans and credits: repayment methods

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Lenders offer several ways to enter money borrowed from the borrower. From bank transfers to cash payment. The same goes for the return of a loan or credit. There are several methods how you can repay your loan or credit. However, the forms of payment vary depending on the type of credit contracted.

The way to return the borrowed money depends on the amount requested, the agreed term and the type of financial entity. The most common reimbursement methods are:

 

Make the bank transfer via internet

Make the bank transfer via internet

Returning the capital borrowed after a bank transfer to the lender’s account is the most common method for repayment of mini loans, microcredits, fast and urgent loans, etc. It is a quick and simple way, since it can be done online, although it is not instantaneous. Be careful with the account number for returns, as many times the payment is made to a different bank account than the one you received the loan.

 

Make the payment with your credit card

Make the payment with your credit card

Today, many lenders also accept returns made through card. You can usually pay your loan with a bank card from any bank at no extra cost from you. It only remains to inform your lender that you are going to pay your card debt, since by entering the card details and the amount, the entity can identify the payment.

 

By cash payment

By cash payment

Although it is the most traditional method, it is less and less used, since it needs time to go to the bank office or branch and make the return. On the other hand, it is an instant option. It is often used to cancel late payments or unpaid fees and avoid daily penalty. By making the cash deposit, it is necessary to identify yourself well, so that the lender knows who the payment is coming from.

 

Direct debit

Direct debit

As for personal loans, mortgages and other loans with large amounts, the most common method is direct debit. This method consists of automatic collection of the determined amount of your account, on the indicated date, without having to carry out any operation on your part. It is especially used in credits that are reimbursed in periodic installments during an agreed term.

 

Trustly payment system

Trustly payment system

Trustly is the fastest and safest way to make your loan payment. If they work with your bank and the lender accepts it, it will be accessible from your personal area to make the payment in a matter of minutes without having to fill in the beneficiary data, account, amount, etc. Select your bank and log in with your usual access codes through an encrypted and secure connection. You choose the account from which you want to pay and then you just have to verify your payment.

In all these cases, it is very important that, at the time of making the return, the client and the concept of income are clearly and correctly indicated. Or it may be impossible to locate the origin of the transfer and close the transaction.

Never forget that stop paying a loan or credit contracted, the consequences will be negative and will always mean an increase in your cost and in extreme cases the loss of your assets. Please note that if you do not return the loan on the due date, without making the payments corresponding to the extension of the credit before the due date, the late payment interest will be applied and your data will be recorded in the ASNEF file.