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Repay the loan in cash? You pay twice.

When you need to borrow money quickly, you will certainly appreciate the opportunity to get cash on hand immediately upon signing the contract. This, however, specify the manner of repayment, which is not nearly as favorable. The so-called standby mode last installment loan providers pay once as much as you borrowed.

Have you ever heard of standby mode installments? Although it is common practice to repay consumer loans and cashless month, not the rule. "Cash mode determines the next method of drawing money and repayment method, which is a personal collection of installments in cash salesman loan provider. Toll for you will go home and collect individual payments weekly installments as the interval is a week, "says Luke Green, head of the legal department Dtest.

Provident Financial Ltd. offers such a scheme contract and you can choose it. But it is not free. When a loan in the amount of CZK 18 000, the price for the cash collections installments over 10 000 CZK. After taking account of other expenses recognized as interest and fee for administrative work, in effect pay 36 600 CZK. Compared with what you have borrowed, so once you're returning. While the annual percentage rate (APR), which shows the cost of the loan per year, while 100 weekly installments amounts to 49.7%. However much you pay if you pay off the loan on behalf of the company. The fee for cash installment regime is not included in the APR.

Cash regime may not be the most common methods of repayment, and the consumer may not choose it. "Fees for payments in cash should however be included in the costs associated with the loan, so that everyone can make an informed decision. If contractual information contained two APR, few would willingly gave priority to cash collection before noncash cost-saving option, "says Luke Green. The only advantage is immediate loan disbursement in the hand, while the cashless mode, you wait a few days for credit to your account.

Source: tz

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