Early loan repayment is the best way to reduce the amount of the cost of providing Bank loan. However, not all loans allow this possibility.
Most often, such law is introduced for larger loans, mortgages and auto loans.
The ban on partial repayment is also very common.
To understand whether the client problems with the early repayment of the loan, it is important to carefully examine the contract at the first visit to the Bank. Often, in order to divert customers from the early closing banks set minimum limits on the amount of repayment.
Each borrower must know that the Bank has no right to set penalties for early repayment of the loan. Relevant changes to the law were made in 2011.
It is important to observe one caveat – to prevent the financial institution at least 30 days prior to the closing date of the contribution.
A warning is sent to the Bank in the form of written statements. Often, banks use their own standard application forms, therefore it is not necessary to "reinvent the wheel". As a rule, the Bank reviews the application for early closing the loan within a week, after which the payment schedule is amended. The nature of the changes depends on the type of early repayment – partial or full closure.
In the same case, if you simply put the required amount into the account without confirmation from the Bank, the funds will simply be debited from the account in that volume, which was originally envisaged.
It is also important to take the confirmation from the Bank to close the loan and terminate the loan agreement. This document is provided by the Bank after the last payment on the loan. In order to protect yourself from problems with the financial institution, a certificate of closure of loan contract and all annexes must be maintained.