Adjust the loan agreement retrospectively.
Posted On April 18, 2020
The Germans are currently in a buying mood – they no longer pay their expenses and bills primarily through savings, but increasingly through borrowing. According to the latest study by a Cream Bank, young Germans in particular are prepared to pay future expenses through a bank loan.
Thanks to many free loan comparisons on the Internet, taking out a loan is now neither complicated nor particularly time-consuming – after a successful credit check by the bank, the requested money is usually paid directly to the current account of the consumer after a few working days. But what to do if you notice after the loan payment that the agreed repayment rate or the term are set incorrectly.
Adjust various loan terms after signing the contract
A lot can change in life over a period of four years that an average borrower needs to repay his installment loan: For example, an increase in salary or an inheritance can quickly increase the financial scope of the borrower – in this case, it makes sense to to put more money into loan repayments.
There are two options for the borrower: Either the consumer pays a larger amount of the outstanding loan debt with a one-off special repayment or he adjusts the basic repayment modalities for the entire remaining term to his new financial situation. For example, the borrower has the option of increasing the originally agreed monthly repayment rate in order to reduce the loan term and the total loan costs.
If the consumer has less financial leeway during loan repayment, he should inform the bank. The bank will then agree with the customer to reduce loan rates and extend the loan term. This is to ensure that the customer does not have to pay any special fees if a timely transfer of the excess repayment rate is no longer possible.
The bank must be informed of any changes in writing
In addition to adjusting the repayment rate and the loan term, borrowers can usually have other contractual agreements easily changed at the bank. It is usually not a problem to take out residual debt insurance after signing the contract, to change the reference account or the address of the borrower or even to include a second borrower in the application. However, the customer should always notify all of these changes to his bank in writing. If the bank agrees to a corresponding adjustment of the contract components, these are recorded in a new credit contract.