How to find out what the Bank may charge penalties on the loan?
The most common case of penalties from the Bank is the loan arrears. You do not pay on time the next payment, and the lender is entitled to charge penalty on the loan. The penalty (fines or penalties) should be spelled out in your loan agreement.
But even if you pay the loan, the Bank can still charge a penalty, for example in the following situations:
- the borrower has issued a life insurance and health or of the collateral, but had to do it in accordance with the terms of the credit agreement;
- the borrower has carried out actions with the collateral which are prohibited under the terms of the pledge agreement (for example, prescribed in the mortgage apartment person without the consent of the Bank);
- other situations specified in the loan agreement (the pledge agreement).
Cases and conditions of calculation of penalty on the loan prescribed in the loan agreement or the pledge agreement. If you have any questions about penalties, see the text of the documents.
What are the penalties for the loan?
The terms of the loan agreement may stipulate the following penalties on the loan:
- a fixed amount for a violation is assigned a specific amount to be paid;
- a percentage of the amount of overdue debts – the amount of the fine will depend on the amount not paid by the borrower in time;
- a percentage of the balance owed – in this situation the calculation is taken not the amount of overdue and unpaid debt on the loan.
How to reduce fines on the loan?
In order to reduce the amount of the penalty on the loan, you can try to negotiate with the Bank. In this situation it is necessary to provide employees of the credit institution guarantees that in the near future the borrower will repay the loan.
If the case went to trial, the statement of defence must indicate the disproportionate penalties violations and the amount of debt. The lawyer will be able to intelligently justify your position and to ask the court to reduce the penalty on the loan or even to prove its illegality.
The maximum penalty for the loan
The law has not yet specified the maximum amount of penalties on loans. Therefore, this issue remains at the discretion of the Bank. However, currently in the State Duma considers amendments to the mortgage law, according to which penalties on the mortgage may be limited to a maximum size of:
- not more than 20% if the period of delay for credit to accrue interest;
- 0.1% of the overdue payment for each day of delay – when there is no interest on the loan for the period of delay.