The purchase obligation is a contractual clause that is included in every loan agreement. It states that the borrower undertakes to take out the loan or have the installment loan paid off within a predefined period of time. The contract also contains the rules of repayment.
The purchase obligation, states that the borrower undertakes to purchase the loan within a predefined period of time
For the lending bank, the Purchase commitment a security. It can assume that it will earn the profit through the fixed annual effective interest rate. The borrower also undertakes to use the loan even if his financial situation suddenly improves and he actually no longer needs the borrowed money.
However, consumers have a window of two weeks to return the loan (withdrawal period). Some banks also offer longer revocation periods. Otherwise, the loan can only be returned if it is repaid early. In this case, however, the bank has the right to charge an early repayment penalty. With this compensation, the borrower at least partially compensates the bank for the loss of interest income.
It is important to note that there is an obligation to purchase and that it is included in every credit agreement. As a consumer, you should therefore always think carefully about whether you take out a loan and whether you really want to use it. If you have any doubts or are unsure, you should consult a financial advisor or read up on the various credit offers before making a decision.
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