To find out the minimum payment amount on a Lendoff loan, you need to make your own calculations or wait for a call from a bank representative. On the eve of making the next payment, the lender obligatorily contacts the client, recalls the write-off of credit funds.
What is the Lendoff minimum payment?
The minimum payment is a fixed amount that the borrower is obligated to pay within the terms set by the contract. The calculation and calculation of the monthly payment is carried out individually. Under standard loan conditions, the minimum percentage is 6%. Depending on the amount of debt, it can reach 8%, but no more. You can find out the exact numbers in your account, or by calling the Lendoff call-center.
Timely repayment of the loan is a guarantee of mutually beneficial cooperation between customers and Lendoff Bank. The minimum payment made on time will allow you to reuse financial assistance in the future.
How to calculate the minimum payment yourself?
One of the most common questions remains: “How do I know the amount of the monthly payment before the receipt of the statement?”. Firstly, it depends on how much of the money was spent in the billing period and the card rate, and secondly, you need to take into account such moments as:
- unpaid minimum payments for the previous period;
- payment of SMS notifications;
- commission for servicing a card by a bank;
- interest for cashing out funds;
- possible penalties for late payment of the minimum payment;
- depositing within the scope of insurance coverage (if the option is active).
The monthly payment for a Lendoff credit card is calculated taking into account the above items of expenses. The calculation is based on the amount of existing debt and is 6% -8%. But the minimum payment amount must exceed 600 USD, and the final loan amount must be a multiple of 100 USD.
Self-Service Payment Example
To understand the features of the calculation, you should study a simple example. For example, a customer has a Lendoff Platinum card, with which he has withdrawn 50,000 USD. At the same time, there were no other transactions in the current billing period, including withdrawal of commission for SMS notification. The calculation is as follows: 50,000 / 100 * 6 (percent) = 3,000 USD. This is a typical case, therefore, problems with the calculation should not arise. If we take as an example a more complicated situation, where a client spent 20,000 USD via bank transfer and removed 30,000 in cash, then the scheme will be different.
First, a one-time annual payment for servicing the bank in the amount of 590 USD will be debited, and at the end of the period, 59 USD will be debited for using the SMS Notification service. Also, a certain penalty is charged for cashing out funds – 2.9%, which in cash is 290 USD. If we take a fixed 6%, it turns out that the minimum payment will be: ((20,000 + 30,000 + ((30,000 / 100) * 2.9 + 290) +59) / 100 * 6 = 3,073.14 USD. In order not to get confused in the length of the formula and figures, it is better to wait for a call from a bank representative who will report the correct amount to pay off the debt.
Can I pay more?
For those who want to quickly close the loan, you can increase the amount of the monthly payment. Thus, the client significantly saves on interest. If you have the opportunity to pay the full amount of the debt in one payment, you may not need to pay interest. All Lendoff loan products have an interest-free period of 55 days. But it’s worth considering that the privilege applies only to non-cash transactions, and there’s already a percentage for cash withdrawals
What will happen if you do not pay the minimum payment?
Before you apply for a loan at Lendoff you need to be sure that there will be an opportunity to return funds to the bank. In the case of long-term debt on a loan, you should not rely on the loyalty of a financial institution and believe in good luck. At the first stage, debtors are fined, and then they turn to the court or collectors for help.