Loan repayment is a responsible operation for the borrower: it must be done on time and in full. Fulfilled obligations are the key to creating a positive credit history not only to a particular bank, but also to other creditors.
It is necessary
Loan agreement, money
Instructions
Step 1
Before you finally end your "friendship" with the bank, make sure that you are not threatened with any sanctions.
Before repaying the loan, carefully read the loan agreement, in particular, the section on early loan repayment: are there any sanctions (fines) for early loan repayment. Usually, the longer the term of the contract, the less fines, or none at all. Sometimes banks indicate a specific period (moratorium), for example, 3 years, before which early repayment of the loan is not provided at all. If there are no penalties, you need to notify the bank of your intention to repay the loan ahead of schedule, in writing. After that, the bank will check all your payments and provide the total amount to be paid. And only now you can pay off completely. Do not forget to ask the bank to provide a letter stating that your loan is fully repaid and there are no claims against you. This letter will be a guarantee against possible "mistakes" in the bank, as well as confirmation of your positive credit history.
Step 2
If sanctions are provided, you need to find out with the bank how much you will have to pay in the form of a fine for early repayment at the moment. If the amount turns out to be significant, it makes sense to wait until the end of the "moratorium" period for early repayment. If financial opportunities allow, do not hesitate: the sooner you release yourself from obligations, the better for your psyche. After repaying the loan, do not forget to receive a letter from the bank stating that the loan has been repaid and there are no claims against you.
Step 3
If your agreement does not contain a clause on early repayment of the loan (and this happens in the case of a small and short-term loan), then this becomes the subject of negotiations with the bank. You will most likely have to write a statement addressed to the bank's management asking for an early repayment of the loan. It may take several days to process the application, but no more than 30 days. If the application is approved, you will only have to repay the remainder of the loan. Do not forget also about the letter from the bank stating that the loan is fully repaid and there are no claims against you. In case of refusal, you will have to repay the loan in accordance with the loan agreement.
