Loan commissions – what costs can we expect? – Fagin

Are you going to take out a loan and wonder how it really is with this commission? How much can the loan commission be and why is it actually charged? Is a bank commission a necessity or maybe you will be able to find a loan without a commission on the market? What is the definition of a bank commission? How much can a mortgage commission be in practice? Why is the commission on the loan granted so significant? We have prepared a handful of basic information for you.

Commission for granting a loan


It is difficult to answer the question of what a bank commission is, because the commission has many names! There are several types, including a mortgage or any other commission. When granting a loan, for example a mortgage, the bank charges a commission just for this activity – one can risk the statement that the commission for granting a loan is for the bank a kind of remuneration for borrowing funds.

Of course, this does not mean that such a commission in the bank is always required. Sometimes loans are offered with no commission for granting them, but ATTENTION – this does not mean that they are the most advantageous option in financial terms. How much the commission will be at the bank for granting the loan is a very individual matter, associated with a specific loan offer, because a number of factors can affect the amount of the commission. Therefore, ask your bank for all details.

Commission for renewing the loan


The cost of a bank loan is an important issue, so it requires careful analysis. The commission on granting a loan is one thing, but a commission for renewing a loan is often required – this concept is inseparable from a revolving loan, i.e. a credit limit functioning in a personal account. The credit limit is made available to the customer for a specific period, often twelve months. After this time, if the loan is renewed, the bank may charge a commission of a certain amount. You should check whether such a commission is required and how much it will be at the stage of selecting revolving loan offers.

Commission for early repayment of the loan


Bank commissions and fees are issues that require very careful analysis when choosing a specific offer. It is also worth bearing in mind the commission for early repayment of the loan – in some cases it may be necessary to pay it. The amount of such commission may depend, inter alia, on whether it is a partial or total repayment. In the case of variable rate mortgages, such a commission can be charged only for three years – this period is calculated from the moment when the repayment of the liability started.

A bank commission is a cost you cannot forget. A loan commission for a mortgage or other type of loan should be taken into account when analyzing the available offers. Types of bank commission are, among others, commission for granting a loan, commission for renewing a loan or commission for early repayment of a loan. Information on the amount of individual types of commission for a specific credit offer should be provided to us by the bank.