YOUR LEGAL RIGHTS AND RESPONSIBILITIES OF BORROWING

   Hello readers in this post i would like to talk about the legal formalities and rights of loans. i think it is very valuable assets for you , lets starts .In conjunction with that you take out a loan from a financial enterprise , you have certain privileges and obligations. Here is a summary of What obligations you must fulfill, and the duties you should ensure that your bank complies.

Some rights and obligations will vary with regard to whether you are taking up a common installment loans or credit lines / flexi / mortgage (lenders use distinct concepts for the same kind of loans).

   A repayment loan is a loan where you borrow up once, and then repay this amount in one or more installments, usually at the appointed time.

   The credit lines / flexi / mortgage you get granted a credit limit. Then select whether you want to use whole or parts of this. You can paying off credit, and possibly borrow again within the credit limit you have been approved. In this review we use the term credit lines, but be note that your bank may use the term flexible mortgages or mortgage.

LENDER DISCLOSURE

   Prior to enter  deal with your lender, you are entitled to obtain a range of information. This information shall receive written and they should able to assist you to assess whether you should take up the relevant loan or not. You may at any time during the loan agreement require that such information repeated.

REPAYMENT

   In the first, you are entitled to be informed about efficient annual interest rate. Effective interest rate is the nominal interest rate plus all the charges and other costs on the loan. This included, among other things forward, start-up and deposits fee. The effective interest rate is thus the rate on the loan.

  You will also be told yearly nominal interest rate, and charges and other borrowing costs to be charged to the borrower. This will provide you an overview of the factors the efficient interest rate is made up of.

   Also you will be informed of the size, number and due date payments for in the whole loan period. The size would naturally change when interest rates go up and down, however you will thus have an overview of the size based on interest rates at the time of borrowing. You will also be told how the relationship between the principal, interest and other costs associated with each payment will be. The overall amount to be paid shall also be informed.

CHANGE OF LOAN AGREEMENT
The lender can not free to change loan contract to the prejudice of you, the customer, without you agree. This does not apply if the lender has made a reservation in deal about changing interest rates, charges and other costs. Caveat in the contract shall specify the conditions that change can be made, and it requires that changes a factual basis. The bank has, however, not permitted unfair to discriminate against their clients by giving a lower interest rate without this being justified.

      Prior lender unilaterally modify the terms of the loan that the borrower shall be notified in writing. This notice shall state what the change is all about, what is the rationale for the change, and of your right to early repayment, as well as on the costs incurred thereby. Early redemption will be dealt with below.

  If the lender modifies the interest rates, fees or other costs for a regular repayment, the notification shall include information about new effective and nominal yearly interest rate, and charges and other costs. In addition, the notice shall give information about the impact the changes will have on loan repayment and interest installments until the final payment .

  By credit lines to notice of such changes contain information on new nominal annual interest rate, and charges and other costs, in addition to effective Yearly Interest Rate at variety of ways to exploit the loan.

  Borrower cannot put the changes into effect until after it has been six weeks’ notice is sent to you as a customer. Shorter notice can be used when the interest rate is changed as a result of that there is a material change in money market interest rates, bond interest rates or the general level of interest rates for borrowing institution

HOUSING CREDIT/CREDIT LINES/FLEXI

  When shooting lines of credit you are entitled to many of similar information as the shooting of installment. You will obtain information about the nominal Yearly Interest Rate plus all the charges and other costs on the loan. also you are entitled to information on the subject to installments of interest rates charges and other costs, as well as details regarding your right to demand early repayment.

   Unlike the installment loans you prior you entering into an agreement with your lender about credit lines, writing for details about the maximum credit amounts and efficient Yearly Interest Rate at different ways to exploit the loan. The loan's effective interest rate will vary according to number of times you pull up the credit limit allocated to you, because it will incur fees for each draw-down.

IF YOU WANT TO REPAY YOUR LOAN BEFORE TIME

     You have the right to refund loan in whole or partly prior to the agreed due date, and you will only be charged loan costs for the utilized credit, calculated up to and including the payment date. Do you have cash to spare, you should give priority for early repayment of the most expensive loans you have, such as unsecured loans, credit card debt.