It is the cost of evaluating your loan application. Before approving it, the lender has to verify your data, consult the debt records and conduct a study on your economic situation and credit history to carry out a risk classification. Depending on this classification, not only is the loan application approved or disapproved, but it also influences the conditions of the contract.

Modification Commissions

Modification Commissions

In the case of the modification of the conditions initiated by the client, the lender can charge a commission as the reward for the new treatment of the contract, reclassification of the risk and other expenses associated with the change.

Partial or total early reimbursement fees

Some financial institutions usually penalize the repayment of the loan in advance, either partially or in full. On the one hand, paying the debt before the contract expires you save the remaining interest, on the other hand an early cancellation fee will be applied.

Delay Commissions

Delay Commissions

This is the penalty for non-payment, which is charged if you are not able to repay the loan, or a fee at the time established in the contract. The amount depends on the conditions of the particular contract.

Other fees, expenses and related products

Other fees, expenses and related products

In addition to the mentioned fees, each financial entity may apply other fees for different purposes. In order to obtain some loans provided by banks, it is sometimes necessary to hire related products, open an account with the private bank or take out additional insurance.

To know the total price that a loan or credit costs you and to carry out an effective comparison with the different offers, you must first look at the Annual Equivalent Rate (APR), which includes the interest along with most of the commissions. But be careful, it is not mandatory to incorporate everything, so the calculation of the APR does not have some extra expenses (for example the billing of third parties, lawyers, notary, etc.) so it is very important to consult the conditions of the Particular contract to know the exact cost of the loan in its entirety.