Ways of Loan Payment

with a cashier, and a payment slip. Often people go to bank branches, lending

institution payment offices, mall payment centers and other booths where loan payments are accepted.

One must first fill-out a payment slip, and go to the counter to pay the payment

amount due or desired. The one who will pay via the counter must always make sure that the references number, loan policy numbers, and other important details that will

be written in the payment slip are correct, as this information will be encoded and

validated by the cashier.

Second is through what most lending institutions offer - the auto-debit arrangement facility. From two words auto and debit. Automatic means by itself, system-generated and no need for command. The word debit means deduct or subtract. Auto-debit then means automatic deduct or deduct by itself. Auto-debit arrangement is simple, an account of the borrower is deducted regularly on a specified date amounting to the amount of loan amortization. Auto-debit arrangement is the most convenient of all as the borrower needs not to fall in line, fill-out payment slips and remember due dates. For most of banks, auto-debit arrangement is recommended specially for loans that have regular amortization. The account holder must make sure that there is always enough balance on the source account to avoid penalties and system-rejection of the payment.

Third option a borrower has is through the Internet. Most people have no time to pay over the counter, most have work, others have business or some have other obligations to attend to. It will be harder for them to juggle their time going to different financial institutions to pay their loans. But most people have access to the Internet, specially when at home, office or business site, that is why financial institutions have come up with this solution. That even through the Internet, borrowers can pay their loan obligations with just a click of the mouse. The borrower must first register or enroll his account with the website of the financial institution to be able to access the Internet payment portion of the website. After proper registration and activation of account with the financial institution's website has been made, the borrow can then pay via the Internet.

Fourth alternative is the use of the telephone and/or cellphone as means of paying loans. Paying through the phone is mostly associated with paying via the Internet, as they are basically the same. One must first register with the financial institution. After proper registration, the borrower will then nominate a Telephone Identification Number. This telephone id number will serve as security pass in accessing the telephone payment system. Paying through the telephone is for busy people who have no access,is afraid to the internet.

Fifth is through Automated Teller Machines (ATM's). Most of the ATM's are equipped with payment facility that allows even non-depositors of banks to pay through them. There are two payment types that can be accepted by ATM's. One is through the use of envelopes, and the other by ATM-debit. In the first type, the borrower need to put inside the envelope the money for payment. After that, the borrower will insert the envelope inside the ATM then press necessary options in the ATM screen. The second option is to pay using the ATM card of the borrower. After Inserting the ATM card in the machine, the borrower then press necessary options that that's it the amount desired will be deducted from the account of the borrower.

There are still other ways to pay loans, but in so far, these five are the most common ways a borrower can pay.