There is no problem of liquidated damages in advance in rural commercial bank loans.
Early repayment refers to the behavior of the borrower to repay the loan before the repayment period.
In some cases, prepayment is beneficial to the borrower and unfavorable to the lender, so whether prepayment is allowed and the conditions for prepayment should be clearly stipulated.
Early repayment includes three situations: full repayment in advance, partial repayment in advance with the loan term unchanged, and partial repayment in advance with the loan term shortened.
The loan bank can only accept the application for prepayment of personal loans from the second repayment month. ?
Although prepayment can save interest expenses, there are four types of buyers who are not suitable for prepayment.
operation sequence/order
1. Repayment in full in advance: after the loan bank verifies that the relevant materials are correct, it will go through the formalities of prepayment in full.
2. Early repayment with the same loan term: the loan bank instructs the borrower to fill in relevant agreements. If the original loan guarantee method is mortgage+insurance, and the mortgage registration has not been handled, the original insurance policy, my ID card and relevant agreements shall be presented to the insurance company designated by the city center for the insurance reduction procedures, and the final agreement shall be sent to the corresponding sub-centers by the loan bank in time.
3. If the original loan guarantee method is mortgage+insurance and the mortgage registration has been completed, and the borrower who chooses non-mortgage+insurance applies for partial repayment in advance and shortens the loan period, the loan bank will instruct the borrower to fill in the relevant agreement, and the signed agreement will be sent to the corresponding sub-center in time by the loan bank.
4. The original loan guarantee method was mortgage+insurance, which is still within the insurance period, and the mortgage registration has not been completed: the borrower can apply for partial repayment in advance and shorten the loan period, and can go directly to the guarantee center for handling.
Repayment procedure
According to the bank's regulations, customers who repay in advance need to submit a written application one week to one month in advance and agree on the repayment date. Then, according to the agreed date, bring your ID card and the loan contract signed with the bank to the bank to fill in the loan repayment application form and prepayment agreement, and deposit the money to be repaid into your account for withholding the loan principal and interest according to the requirements of the bank, which will be automatically deducted.
There is no limit to the number of times a bank repays the loan in advance, and it can pay off the loan in whole or in part. It's just that the starting amount of each loan repayment of each bank is different. Some regulations are 65,438+0,000 yuan or multiples of 65,438+0,000 yuan, while some banks stipulate that if it exceeds 1 0,000 yuan, you can repay the loan in advance.
Some borrowers who repay loans in advance can choose two ways: one is to reduce the monthly repayment amount and keep the repayment period unchanged; The other is to shorten the repayment period and keep the monthly repayment amount unchanged. If the income of the lender keeps increasing, you can choose the repayment method of shortening the loan term and realize the debt-free desire as soon as possible. If the income does not increase too much, you can reduce the repayment amount and keep the repayment period unchanged, which can reduce the repayment pressure.
It is worth mentioning that the Application Form for Early Repayment is irrevocable once confirmed by the borrower's bank. As a supplementary clause of the loan contract, it has the same legal effect as the loan contract.
If the loan purchaser fails to repay the loan in advance according to the date and amount specified in the application for prepayment sent to the borrower's bank for whatever reason, it will be regarded as overdue repayment, and the loan purchaser will bear corresponding liabilities for breach of contract according to the loan contract.