Many banks now offer very good campaigns tailored to the budget of each client and provide a variety of opportunities for them to repay their loans. So, which is the best option for your budget in your loan payments?
Balloon Payment Credit
Balloon payment credit is the most preferred method of credit payment. Balloon payment credits, which you have to pay each month, are more suitable for vehicle and housing loans. The balloon payment loan provides significant convenience in the payment of term debts.
If you want to give an example that will give you a better understanding of the balloon payment loan, let’s assume that you have received a loan with a certain interest rate and that your monthly installment amount is 2,000 USD. However, you can pay 1,000 USD monthly installments with balloon payment credit option. If the remaining monthly deficit of 1,000 USD in the last installment you can pay your debt in bulk.
Differences of Balloon Payment Loan
The most important difference of the balloon payment loan is that it provides significant payment ease in terms of maturities and that it reduces the amount of your monthly installments in the last installment. Apart from this, balloon payment credit is given with fixed interest as in many loan payment options.
If you choose to pay with a balloon payment credit, it helps you pay your debts in the long term by reducing the amount of installments you need to pay regularly each month.
Advantages and Disadvantages of Balloon Payment Loan
The biggest advantage of balloon payment credit is that it helps you repay the loan you use without difficulty. You can decide the installment amount that best fits your budget and meet your remaining needs while paying your loan debt. You may even own a new home or vehicle in the process.
If you don’t want to lose your money when you choose balloon payment credit, the most important thing to do is to make good use of your budget. As a result, paying your installments on a regular basis every month does not mean that you cannot pay off your debt in the last month. For this reason, we recommend that you make the right decision on your payment plan. In addition, you can easily pay your credit debt every month without trusting you, you should not forget the debt you have to pay in the last term.
Who Prefer Balloon Payment Loan Option?
Mostly, investors prefer balloon payment. People who want to hold the money, who will receive bulk money in a short period of time, but who want to own a house or vehicle during this period, who want to own a pension with a retirement bonus, prefer the balloon payment option. In addition, people who plan to close the loan by selling the purchased house or vehicle after a while prefer balloon payment credit option.
What is Flexible Payment Loan?
Flexible repayment loan is a repayment option where you can adjust the number and amount of installments according to your own budget. With the money you will get after a while, you can create a plan that you can pay more or less in the future. This means that you don’t have to pay for a long time with the net amounts that will make you difficult to own a house or vehicle with a flexible payment loan. You can compare loan payment types using Kredimodeli.com’s flexible loan calculation tools.
Advantages and Disadvantages of Flexible Loan
The biggest advantage of the flexible payment loan is that you can shape the monthly installment amount according to your income. For example, if you think that your income will increase at a certain rate annually, you can adjust your installments accordingly, or if you want to pay your installments after the first three months, you can set a way accordingly.
In addition, if you think that you will receive a regular amount of money for three months and there will be no such money, you have the opportunity to pay all your installments within those three months. So, it is possible to customize your loan with flexible payment loan.
Correct calculation is very important in the flexible payment option. If you leave the calculations that you need to make before using the loan until after you have received the loan, you will pay early payment fee, early settlement fee, payment plan change fee and so on. You may have to pay substantial fees under names.
Who prefers flexible payment credit?
Flexible payment credit is generally preferred by people who have fluctuations in their budget and who have or will receive new money.
What is Increasing Payment Loan?
The repayment of the loan, which starts with lower installment amounts at the beginning and is increased in certain periods, is called as incremental payment loan. Especially in the first years’ monthly payments, you have the opportunity to pay 25% less than the fixed amount loans received in the same amount.
Who prefers Increasing Payment Loan?
Individuals who earn a certain amount of income every month, or those who have the money to receive it later, prefer to have an increasing payment loan.
Advantages and Disadvantages of Increasing Payment Loan
The advantage of the incremental payment option is that if your budget planning does not change, you should apply the same payment plan according to the money in hand and do not have difficulty in the first months. However, the disadvantage is the possibility of difficulty in the amount of installments increased as a result of the astonishment of your accounts. To prevent this from happening, we recommend that you do a good budget calculation.
What is Decreasing Pay Loan?
The repayment of your installment amount in certain periods is called as a decreasing payment loan.
Who prefers the Decreasing Loan Option?
For example, a vehicle or housing sale has taken place or you have received a premium and you have a lump sum of money, in which case you may prefer a diminishing payment loan. In other words, after the first months of high installments, you can repay your debt with low installments that you will adjust according to your budget.
Advantages and Disadvantages of Decreasing Payment Loan
Decreasing credit is a logical way if you have a lot of money. You will have the opportunity to reduce the installments you will pay in the first months without difficulty and not to have difficulties in the coming months. However, one of the biggest disadvantages of a diminishing payment loan is that you can rely on the low installments that you will pay later and stop calculating.
This situation with the end of the bulk money in your hands when you pay the installments will begin to have difficulty. In order to prevent this from happening, you should not give up account control when paying low installments.
What is Interim Loan?
Except for your regular installment payments, the extra credit payment made during certain periods is called interim credit. For example, if you earn additional income during certain periods, such as a premium, bonus, period rent, you may pay more during those periods. During this period, you can adjust your monthly installment amounts with interim payments to be paid in certain periods. Interim payments can be made in a certain period or in a variable way.
Who is eligible for Interim Payment?
Interim payment is preferred especially by those who earn additional income during certain periods of the year, and those who want to reduce the loan amount and interest burden.