Many borrowers, when applying for a loan, do not always specify the conditions for early repayment. As a rule, a loan is taken for a long period of time, and during this time an amount may appear that will be enough to cover the remaining debt.
Is it possible to fully pay off the debt, and how should one act in this case? In order to correctly assess the situation and plan your actions, you need to carefully study the terms of the agreement and clarify whether a penalty is applied for early repayment of the loan. Not all banks use this repayment scheme, since they are trying to get interest from the borrower, although this is completely justified.
However, many credit institutions are already on a more extensive structure of debt repayment and offer rather favorable conditions. Therefore, if the client wants to repay the loan ahead of schedule, then he needs to remember the following:
- If you intend to completely close the debt, then all current obligations should be paid.
- In case of partial repayment, loan officers can offer two payment methods: reducing monthly payments or shortening the loan period.
In order to start paying off the principal debt, the borrower needs to consult with the specialists of the credit department and write a statement. Most often, there are no fees for early repayment, but when transferring funds, you must be able to correctly calculate the amount and pay it in full. As for interest, the bank is entitled to receive all payments that were accrued during the use of the loan.
Early loan repayment rules:
- Warn bank employees about the decision.
- Set the date when you plan to pay the remaining amount for the loan.
- Contact the bank for information on the exact amount of the loan.
