Rasmus Heinla, head of consumer financing for private clients at Coop Pank, explains that the change aims to provide clients with an option of repaying a small loan as fast as possible should they want to do so. “The survey concerning small loans commissioned by Coop Pank in March shows that eight out of ten people taking out a small loan are interested in repaying it early without extra fees, and every other person would like an opportunity to pay more than the agreed monthly payment at times. By introducing changes to the price list, we are trying to meet our clients’ wishes,” Heinla says.
The results of the survey show that 42% of the adult population of Estonia have taken out a small loan at some point. Of these, 41% have only done it once, and the same number of people have done it two or three times.
Until the change in question, Coop Pank’s fee for the early repayment of a small loan constituted up to 1% of the amount to be repaid early. Starting on 20 May, private clients will be able to pay back a small loan without an extra fee. The change applies to new and existing loan contracts alike.
Coop Pank waives the fee for early repayment of small loans
Starting on 20 May, Coop Pank is changing its price list of services for private clients and waiving the fee for the early repayment of small loans, which used to be charged in the amount of up to 1% of the loan.