Early repayment cannot result in a fine. You can avoid difficulties and get off the gray list of banks if you notify the credit manager in advance about your desire to close the debt and not abuse your right.
The possibility of early repayment of the debt is prescribed in the contract. Often borrowers do not finish reading it, which leads to unpleasant surprises if they want to quickly close the debt. This leads to the need to pay a fine or commission. In some cases, it also negatively affects your credit history.
Types of debt repayment
There are two types of loan repayment: full, partial. The first option is possible after 3-6 months of using the bank's money. This is explained by the fact that in the first months a person pays only interest. With this type, the lender partially loses profit, but some banks allow them to take advantage of this opportunity.
In case of partial repayment of debt, a person pays an amount greater than that indicated in the schedule. This option can be used from the first month. In some situations, a bank employee determines how many monthly payments are covered by the deposited amount. This allows you to reduce the loan term. In other cases, the credit institution subtracts the amount of the debt from the principal. In this case, the monthly contributions are recalculated, but the term remains the same.
How do I exercise my right to early repayment?
What is the savings for nat. person becomes a loss for the bank. A few years ago, banks limited the possibility of early repayment and appointed commissions. Since 2011, this opportunity has been lost. Article 809 of the Civil Code of the Russian Federation stipulates that any client of a financial institution can close a loan agreement ahead of schedule. This norm is also retroactive: it can also be used by those who took out a loan before this date.
Despite the prescribed rights in the legislation, banks find "loopholes" in legal documents. Because of this, the following can be entered:
- inflated interest rates;
- moratoriums for several months and for certain amounts;
- commissions for recalculating the payment schedule.
The most unpleasant consequence for many is the refusal to borrowers who abuse early repayment when receiving loans from other financial institutions.
Subtleties of early repayment
In order not to get into a difficult situation, warn the bank in advance about the possibility of closing the debt ahead of time. This should be done one month before the date of payment. The notification must be in writing according to the sample provided by the bank.
It is more convenient for the banking system that such a payment is made together with the usual one on the same day. But if necessary, the payment date can be postponed, since there are no instructions on this rule in the law.
If you decide to exercise the right to full early repayment of the debt, find out the amount of the loan balance. It can be determined independently, but it is better to use the calculations prepared by the bank's employees. By law, the bank is obliged to provide such information within 5 business days. When all the money is returned, take your statement. It should state that the loan has been canceled, the client has no obligations to the institution.
Those who issued a credit card will have less hassle. They do not need to submit an application, wait for an answer about the balance of the debt. Among the advantages is the fact that the crediting of funds is not fixed. The only thing you need to know is the amount of monthly deductions.
Early repayment scheme
You can prevent problems with the bank if you adhere to the following scheme:
- Check for fines and late payments. Pay for them if necessary.
- Write an application to the bank. A copy with a bank mark can remain in your hands.
- Enter the amount on the day of the month that you normally do.
- Check if the debt has been written off. This should be done in a few days.
- Do not allow pennies in debt to remain. Interest will be charged on it.
- In case of early payment, take a certificate of account closure.
Help is useful not only to be sure that the debt has been completely written off. It will also be required when applying for a loan in another bank or when resolving disputes regarding a client's credit history.
If you have not yet taken out a loan, but are planning to get rid of the debt in advance, use the services of those banks that offer the simplest repayment scheme. In this case, you can deposit rubles or US dollars without notice. A new payment schedule will be generated automatically. This service is available to those who use Internet banking.
In conclusion, we note: do not abuse early repayment, otherwise there is an opportunity to get into the "gray list" of banks. It includes citizens who do not give the institution the opportunity to earn on interest. Such people often get rejected without giving a reason.
