Call periods and loan commitment interest

The call period is a term from the banking sector

The call period is a term from the banking sector

It describes the period in which the borrower can actually take advantage of an applied for and approved loan. The interest rate agreed upon when the loan agreement is concluded applies. In principle, a bank can also grant an expiry period for a simple consumer credit, which is useful for the customer especially if he expects interest rates to rise and is between the approval and the payment of the money Want to secure the favorable interest rate during the period. In practice, however, consumer loans are almost always paid out in full immediately after approval. Exceptions are sometimes possible when buying a motor vehicle if the customer applies for the loan when ordering and the payment is only made when the new car is delivered.

Consider when applying real estate loan

Consider when applying real estate loan

Most often, however, a call-off period is agreed in the context of construction finance. When applying for the real estate loan, the future homeowner does not know at what exact times partial payments are to be made. In the context of construction finance, it is customary to apply for the entire required loan amount before the start of construction and then to call it up in installments when payments become due. Compared to the full direct payment of the loan, the agreement of a call-off period offers the credit customer the advantage of only having to pay interest on the loan from the time of the actual payment. The loan is generally provided free of charge during the call period. Only after their expiry do you have to pay commitment interest to keep the money available. The request period can be extended if required by the borrower.

Banks terms and conditions

Banks terms and conditions

While some banks only cater to such requests reluctantly or for a fee, other lenders offer them expressly in their terms and conditions, which Lite Lender extends the original for some of its programs Call times even automatically. When comparing offers, it is important to consider the different call-off times of the individual lenders and the possibility of a possible extension. For this purpose, simply looking at the result tables in a credit comparison is not enough; rather, the comments must be read or the links to the more detailed information from the individual providers must be used. Ideally, the agreed call-off period only expires when the last invoice for the construction of the property is payable.