Many of those who have a loan dream of closing it ahead of schedule. For banks, such quickness of the borrower is unprofitable - the financial institution is deprived of the planned profit. Therefore, it is important for the client to correctly follow the entire procedure for closing the loan.
Early repayment of a loan is a profitable way to reduce the cost of securing a bank loan. However, not all loans allow for this possibility.
Most often, this provision is introduced for large loans - mortgages and car loans.
Partial redemption prohibitions are also very common.
To understand whether the client will have problems with early repayment of the loan, it is important to carefully study the agreement even at the first contact with the bank. Often, to discourage customers from closing early, banks set minimum limits on the repayment amount.
Every borrower should be aware that the bank is not entitled to establish penalties for early repayment of the loan. The corresponding amendments to the law were made back in 2011.
It is important to observe one nuance - notify the financial institution at least 30 days before the closing date of the deposit.
The warning is submitted to the bank in the form of a written application. Banks often use their own standard application forms, so there is no need to “reinvent the wheel”. As a rule, the bank considers an application for early termination of the loan within a week, after which changes are made to the payment schedule. The nature of the changes depends on the type of early repayment - full or partial closure.
In the same case, if you simply put the required amount into the current account without receiving confirmation from the bank, the funds will simply be debited from the account in the amount originally envisaged.
It is also important to take confirmation from the bank about closing the loan and terminating the loan agreement. This document is provided by the bank after the last loan payment. In order to further protect yourself from problems with the financial organization, the certificate of closing the loan and the agreement with all attachments must be kept.
