Choosing the best loan also consists in understanding all the elements that are part of the process. It’s about you being informed! That is the main feature of smart borrower. In today’s post, we will explain what the study commission is.
It may seem to many to be a known term, or that they have ever seen, but the truth is that few know it. As is well known, in addition to interest, loans carry a series of commissions in their opening. It is true that there are loans without commissions, but it is probably not the case if the amount to be requested is considerable.
Should we acquire more knowledge about loans?
An example of this is when you want to process a mortgage. In that circumstance, the bank must first carry out an analysis of the client’s financial profile. Which serves to verify the ability of solvency as a borrower to meet the type of loan requested.
These steps that the entity has to make to determine solvency carry an expense. It is what is known as the commission to study a loan.
Types of study commissions
The amount charged by the bank for this procedure can be expressed in different ways:
Percentage of the entire loan: they simply apply a percentage of the amount you have requested as a study commission.
Fixed amount: in this case, the bank has already stipulated an amount in euros that it will charge its customers for the study.
Combination: certain entities may charge you an agreed minimum commission plus a percentage on the amount.
Some entities already choose to eliminate the study fee for their loans. Because such a commission is more common when the amounts are large. Well, there requires a more complex and detailed analysis of the client. The important thing is always that the loan clauses are very clear. This commission must appear duly identified. Since the law requires entities that financial loans be explained with their commissions and in simple language.
A very important fact about study commissions
The law does not limit banks regarding the amount they can charge in this type of commission. The bank is free to decide how much this management is worth. Now, in no way would you be obliged to pay it if you finally decide to withdraw from the loan. Nor if the bank does not grant it. Even if the solvency study had already been done.
The future of the study commission
The new Mortgage Law aims to prohibit banks from charging this commission with mortgage applications. Of course, they can camouflage the study expenses in the opening commission, which will be explained in another entry.
Is it clear what the study commission is? It should be remembered that success with financial products is to stay informed!