Commercial loans can be repaid in advance, but it should be noted that different credit institutions have different requirements for prepayment. For example, some banks stipulate that early repayment should be made one year after the loan is actually issued, otherwise the bank has the right to refuse, and if it is approved by the bank, it needs to pay liquidated damages. You need to compare the loan contract to see if your situation meets the requirements of early repayment.

What should I pay attention to when repaying commercial loans in advance?

1. Do I need to pay liquidated damages for prepayment?

In the loan contract signed between the lender and the bank, there is a clause of "collecting liquidated damages for prepayment", so it is reasonable for the bank to collect liquidated damages for prepayment. If the loan contract is less than three years old, the bank will charge corresponding penalty interest according to the amount of prepayment and monthly interest (the years of prepayment and penalty interest of each bank are more or less different, subject to the loan contract).

2. Go through the formalities of repaying the loan in advance

Buyers who return goods in advance need to submit a written application one month in advance and agree on the repayment date. Then, on the agreed repayment date, the buyer brings his ID card and the signed payment contract to the bank to fill out the Application Form for Early Return and the Agreement for Early Return, and deposit the repayment into the designated repayment card, and the bank will automatically deduct the money.

3. Is there a frequency limit for repaying loans in advance?

Lenders also need to pay attention to whether there is a time limit for returning goods in advance. You can choose to pay in full or in part, but the initial amount of return is not stipulated by the bank. When returning goods in advance, ask clearly in advance to avoid unnecessary trouble.

What are the repayment methods of commercial loans?

1. Equal principal and interest repayment method

Matching principal and interest repayment method is to add the total amount of principal and interest paid by _ _ _ _ _ _ _ _ _ _ _ _ _.

2. Average capital repayment method

Matching principal repayment means that the borrower divides the principal into months and pays off the interest from the previous trading day to the repayment date. Compared with the matching principal and interest, the total interest cost of this repayment method is lower, but the principal and interest paid in the early stage are more, and the repayment burden is reduced month by month. Under the same payment time, the interest paid by the equal principal and interest repayment method is higher than that by the average capital repayment method. Therefore, if you plan to repay in advance, you'd better choose the average capital repayment method. Of course, this should also be combined with personal circumstances to choose the repayment method that suits you.