The obligation of the borrower to return the loan amount you can always return it ahead of time in full or in part. There is only one but the bank must be notified of the Deposit at least 30 days in advance. However, the credit institution can shorten this period. The exact details will be specified in your loan agreement.
Now large banks accept applications for making additional payments via the Internet, and the payment is taken into account almost immediately. This is an important condition in the competition, as people pay attention to the possibility of paying off debts ahead of time. But some institutions still want to receive applications on paper. It is better to find out about this before you take out a loan.
Please note: you must notify the Bank, not ask for permission. The main thing is to meet the deadlines. So they can't refuse you.
Repayment of the loan — early or not-is simply an inevitable operation within the framework of the loan agreement.
And even more so, we can't talk about fines. The law allows you to repay the debt ahead of time. So you just follow the rules, you have nothing to fine. If you are faced with Bank arbitrariness and paid extra, please contact the court.
But here it is important to remember the nuances. For example, if the loan agreement states that you need to notify about the delay 15 days in advance, and you certainly want to Deposit money today, this can already become an additional service. The Bank meets you halfway: it performs an operation outside the contract. You can get a Commission for this.
All this is true if you take out a loan, not for business. Otherwise, the situation is somewhat more complicated, and you will have to analyze each case separately.
Usually, you just need to specify the amount and date of debiting in a special column in the mobile Bank. A simple action, but a lot depends on it.
Let's say you decided to pay off the loan ahead of time in full, all calculated and put the desired amount on the credit account. But no additional actions were taken, hoping that everything is obvious: the money will be withdrawn and the loan will be closed. How it will work out in practice: the system will automatically pick up the amount of the monthly payment on a schedule. And then it will not be enough, because you counted the money with early repayment, and you will begin to accrue delay, which is fraught with trouble.
If you have made a part of the money ahead of time, the institution must recalculate the full cost of the loan for you by the law. In the document, you can see what has changed: the amount of the overpayment, the term or amount of the monthly payment. In addition, you will be sent an updated schedule if it was previously issued to you.
It is better to regularly repay the loan early in small amounts than to save a large contribution
Let's take an example. You owe the Bank 185 thousand, there is still 1 year and 10 months of payments at 15% per annum. In the next six months, you can either pay 6, 16, 8, 2, 5, and 4 thousand dollars consecutively or pay 41 thousand dollars at once after six months.
In the first case, your debt after six months will be 97.7 thousand, overpayment-23.6 thousand. In the second — 98,85 thousand and 25 thousand, respectively. At a longer distance or with more significant amounts, the difference will be more convincing, but the meaning is clear.
It is not always worth depositing money as soon as it appears
This paragraph does not contradict the previous one. Some banks are ready to write off the money you Deposit to the early payment account on the day it is credited. But first, they calculate how much percent has accumulated on the balance of the debt since the last monthly payment until today. After this amount is subtracted from the one that you have listed. As a result, the size of the delay is less than you expected. And sometimes it is not taken into account at all as an early Deposit of money.
Let's say you owe the Bank 200 thousand dollars. Your monthly payment is 6 933 dollars, it is scheduled for February 14. You have an extra 1 thousand, you pay it on January 29. Logically, your debt should be reduced to 199 thousand. In fact, the early payment will simply be taken into account for the repayment of interest. The monthly payment on February 14 will be reduced to 5,993 dollars, but this is not what you wanted.
If your Bank operates under this scheme, it is more profitable for you to make an early payment on the day of mandatory payment.
It is important to calculate the delay correctly
If your Bank takes into account an early payment on the day of the monthly payment, there are also nuances here. It is important to have the correct amount on your account. Let's say the conditions are the same, you pay 6 933 dollars. We decided to make another 10 thousand ahead of time and wrote a corresponding application. But on the right day, there were only 16,930 dollars on the account. The system will first remove the mandatory payment. And then nothing can be done because the specified amount is not on the account: there are not enough 3 dollars.
As a result, the early payment simply will not pass.
It is more profitable to renew insurance for long-term loans every year
Sometimes credit recipients are offered insurance for the entire term of the loan. They promise favorable conditions, and you don't have to remember the policy every year. However, if you extinguish the credit ahead of schedule, the advantage is quite doubtful.
When you apply for insurance annually, it is calculated based on the actual loan balance. If you do this immediately for the entire term-from the expected one in accordance with the repayment schedule. The difference can be impressive. In addition, if you pay off the debt a year earlier, it turns out that you have overpaid for at least 12 months.
And one more point that is not related to delays. When the insurance actually works and is not issued for a tick, it should take into account your health condition. For example, for the simplest policy, payments may be refused if you have a chronic disease — the conditions will be written in the contract. After two years of credit, it is revealed that you have it-it turns out that you will not see insurance payments.
The annual update of the policy makes it possible to take into account this nuance.