Loan Redemption

Loan Redemption

If you have taken out a loan from a bank, you have to pay back the money with the interest and fees to the lender, which is called repayment. There are three types of redemption, such as annuity redemption, installment repayments and term repayments. Which repayment method offers which advantages and disadvantages? The annuity repayment is characterized by the fact that the rates, which one pays back to the bank, always remain the same. Here, the rate is composed of interest and repayment. The special feature is that the annuity (rate) at the beginning of the repayment, mainly from interest…