Loan repayment: how and when to use a standing order?
October 4, 2019
Technical repayment of payday loans should not cause any problems. It is as simple and quick as borrowing money – a simple transfer is all it takes to consider the case as completed. It is worse when we decide on an installment loan, especially the very long-term one, even for a few years. Dozens of installments to be repaid are on the one hand comfort that allows you not to overburden your monthly budget, and on the other, the need for continuous and long-term control over expenses. In the jungle of bills, and perhaps other obligations, it is easy to overlook installment payments. Standing order comes with forgetful help.
Which loan companies accept standing orders?
When it comes to paying off the loan, the loan company is only interested in getting the commitment paid on time and, of course, in the right amount. It does not matter whether you order a loan installment manually or whether an automatic banking system does it for us based on our instructions. Anyway, the lender doesn’t even have the opportunity to verify how the transfer was sent. So there is no need to verify the lender in this respect, and it is better to focus on the other advantages of installment loans: long repayment period, available loan amount, the possibility of postponing installment payments or changing the repayment schedule. It is worth using a loan comparison engine, which gives you the opportunity to combine all these features of payday loans in installments.
Standing order in Monego Now
Some loan companies themselves encourage such practices and even allow you to set up a standing order from the level of the account on the loan service (customer profile) rather than the bank account. Monego Now is such a company, where so-called recurring payments that can be started using a bank card payment card. After providing data from the card in the internal Monego Now application, the monthly loan installment will be charged automatically on the day of payment, and after paying off the whole loan, the payment subscription will be canceled. Therefore, the loan can be repaid without any participation of the borrower. Of course, cyclical payments in Monego Now are not binding and the borrower has the right to cancel the service and make manual transfers at any time, although of course it will be definitely less convenient.
This is very important in the context of the Monego Now installment loan available at a high amount of $ 10,000, which is associated with a long repayment period of up to 24 months. “Watching” payments for two years can be problematic, and even the penalty costs for late repayment can be high.
Standing order at the bank – how to set it up?
Cyclical payments in Monego Now may raise doubts. Finally, the external program should provide all sensitive payment card details: its number, expiration date and CVV number. These are groundless fears – the connection is encrypted with an SSL code, the card details are not disclosed in any way to third parties and are processed only in the scope of handling recurring payments. The same applies to card payments in online stores or even commonly known recurring payments regarding service subscriptions, for example on Netflix or Skype.
However, we understand that someone can resist this and prefer to set up a standing order by themselves through their bank. It should be remembered that in order for the loan to be repaid correctly, it would be best if the loan was repaid from the same bank account to which it was paid. So if we used an account to take out a loan, which is usually unused, and the payment goes to another one, it is worth transferring a certain amount to the “loan account” so that the loan can be repaid without interruption.
What do you need to know about a standing order? The basic knowledge is that it is a service offered by all banks operating on the Polish market. They can be established both at a bank branch and ordered by phone or via electronic banking. However, the costs of such an order are different. In some banks all of them are free, in others you will have to pay, although sometimes only in outgoing transfer orders to other banks. These amounts will not be large – for example, at BM Bank, the cost will be $ 1 for each outgoing transfer.
Why use a standing order?
Non-bank loans have the very positive feature that the installment amount does not change. The loan interest rate is fixed, and the commission and administrative fees are calculated at the beginning and added proportionally to each installment. Circumstances that may change the amount of the installment or additional costs are: changing the loan repayment schedule or being late. However, they come from the borrower and depend on him, they result directly from his actions. However, if he repays the loan conscientiously and there are no perturbations, he does not have to worry.
Repayment of the loan with a standing order will therefore be a godsend for people who are either forgetful or are afraid that the payment may be issued quickly and there will be no more money to pay back the loan. This can also be remedied – it is worth setting the installment payment per day immediately after the payment. In this way, repayment will be given priority and implemented first. In addition, most banks notify their clients via SMS if there is not enough funds on the day on which the transfer should be made to complete it. So we still have time to solve this problem quickly and avoid the consequences of late payment.