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Most of us, when taking loans, downplay our possibilities. It calculates so that the monthly payment amount does not exceed the amount of free money and even better, so you can delay the salary part. After the loan is issued, we get a higher paying job, and it becomes possible to pay off the loan faster.
Is it possible to repay a bank loan ahead of schedule?
Let’s move on to the law. According to it, which came into force on November 1, 2011, an amendment was made to the Civil Code. Now every citizen has the right to repay the initial loan. In addition, the bank is not legally entitled to charge additional fees and penalties to you for the early repayment of the loan. Therefore, if you want to repay the loan early, that is your legal right. And even if nothing is stated in your loan agreement about the early repayment of the loan, you can safely go to the bank and pay off your loan, in addition, pay it back. So for the Search Mortgage Solutions Manchester you can now have ample options present.
How to repay the loan early?
No later than one month before the planned repayment of the loan, write a statement and give it to the bank. Bank responses are not needed, that is, we act unilaterally. Please note that some banks limit the repayment period of the loan, for example, for three months. Otherwise, bank penalties apply to borrowers. It often happens that if a loan is taken for a short time (one or two years), an initial return is not possible. Restrictions may be imposed on the initial payment amount. For example, it must be at least 10 thousand rubles.
Advantages of early repayment of loans
In the case of early repayment of the loan the borrower pays less interest to use loan funds, therefore the faster you close the loan, the more profitable you are and the less profitable the bank is.
In the case of early repayment of the loan, you have full rights, for this you only need to write a statement at the bank branch, and this can be done at the time of closing the loan agreement.
In what cases is it unprofitable to repay the loan early?
If part of the loan is paid by the budget. If you make a deposit for early repayment, the amount of the subsidy will decrease; Calculate carefully whether fast loan repayments will benefit in terms of inflation. You can give the last 100 thousand savings for credit today, or you can pay back the loan in stages, and in six months, 100,000 will not be as important now. The initial payment for a loan can be of two types:
- partially
- complete
In the case of partial payments, the borrower has two options: to reduce the amount of monthly payments or reduce the term of the loan. What is more convenient for you paying a smaller amount each month or getting rid of a loan quickly choose yourself.
