After receiving a positive decision, many people lose the ability to think clearly, and therefore sign credit agreements, even without really reading them. But when studying such a document, a person can learn a lot of interesting information, including understanding what penalties and violations will be applied by the lender.
The common types of fines
Each loan agreement specifies a set of rules that the borrower must adhere to. If a person violates any of them, then punishment follows. Such punishment may be fines and penalties. The main responsibility that a person assumes when signing a loan agreement is to pay the loan debt on a monthly basis. Violation of the payment schedule results in a fine. In the loan agreement, it is mandatory to sign how the fine is calculated since each credit and financial organization can use its own scheme.
It is important to remember that the payment is not always credited on the day when the funds were deposited, since some payment options may take several days for the funds to reach the credit account. Rarely, but still, there are situations when payments are lost. To ensure that the bank does not have such claims against the borrower, it should always keep receipt of cash orders and receipts after making a payment, which is official proof of payment.
Bank organizations can fine borrowers who did not renew their insurance in time or changed their insurance terms without notifying the lender. In this case, interest may be charged, but sometimes such violations even lead to premature termination of the loan agreement, in which a person is obligated to immediately pay the entire balance of the loan debt.
Banks can also add other reasons to the agreement for which it has the right to charge fines. Such punishments are quite rare, but since they occur, every borrower should know about their existence. For example, you should read the loan agreement very carefully if you get a loan for a car or for real estate. Some lenders may require borrowers to report the amount of current income after a certain period of time, by submitting a certificate on the bank’s form or with the official 2NDFL form.
This document is required for the bank to make forecasts for loan repayment in the near future. When a mandatory report item is included in the loan agreement, but the person does not comply with this requirement, the amount of their debt increases due to a fine. There are also financial organizations that fine their borrowers if they forget to notify the lender of a change of residence, passport data, or place of work.
In any case, the amount of fines for each violation must be clearly spelled out. It is not necessary to agree to sign a contract where there are no exact amounts or percentages, and the bank can set its own penalties in each case. Such loans can turn into very serious problems for a person with large overpayments.