Understanding Your Loan Payments
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Understanding Your Loan Payments

KleinBank offers three types of loan repayment that can be made utilizing Online Banking, visiting one of our branches, contacting our Solutions Center, or by mail.

  • Standard Payments The most common repayment plan is a standard payment. It spreads equal payments over the course of your loan. Standard payments are made on the same date each month and includes principal and interest.
  • Interest Only This type of payment only covers the interest on the balance. There are no payments made to the principal of the loan.
  • Principal Only A principal only payment makes an extra payment directly to the principal of the loan. A principal only payment can only be made if the loan is current, and is done after a standard payment has been applied.

For final payoff or pay to zero on lines of credit or checking reserves, please contact our Solutions Center.  

Paying on time makes it easy KleinBank will set up your loan repayment date (generally set up as an automatic transfer). We will calculate how much interest and principal you need to pay along with the date your payment will be due each month so your balance will be zero at the end of the payment period. If you make all your regular monthly payments on time, and there are no other changes to your account, you should expect to pay exactly the amount presented to you at the start of your loan repayment. If your payment date falls on a Saturday or Sunday, the payment due date will be adjusted to the following business day.

Paying late costs you money When KleinBank receives your monthly payment, outstanding interest on your loan is paid first. Then the rest of your payment goes to your principal balance. If you pay late, more of your monthly payment is used to pay interest and less will go toward reducing your principal balance. A late fee may also be charged, which increases the cost of your loan.