"There are tens of millions of buildings in Ande, which makes the poor all over the world happy." Throughout the ages, houses have always been places to live. Now most people need a loan to buy a house, and the repayment will come naturally. There are so many repayment methods in the market that equal principal and interest and average capital are the mainstream repayment methods. When we choose the repayment method in average capital, can we repay in advance?

Is prepayment not allowed in the average capital?

The average capital can be repaid in advance, and basically no bank will stipulate that the average capital cannot be repaid, as long as there are no restrictions in the loan contract. If you want to repay in advance, you'd better consult the manager of the bank to understand the repayment regulations of the corresponding bank, and then choose the time to make an appointment at the bank. After the appointment is successful, just wait for the time and bring the prepared materials.

What should I pay attention to in prepayment?

1 Understand the bank's policy of repaying loans in advance.

Different lending banks have different lending policies. If property buyers intend to repay their loans in advance, they should understand the bank's policies. Now, for most small and medium-sized joint-stock banks, there are few additional penalty interests for buyers who want to repay their loans in advance, requiring them to pay liquidated damages. However, some large state-owned banks need to pay liquidated damages to varying degrees. Some banks will make it clear in the loan contract that early repayment may require a certain penalty.

2 is it necessary to pay liquidated damages for prepayment?

For borrowers who repay loans in advance, it is necessary to know whether they have to pay liquidated damages in advance. In fact, the bank's regulations on early repayment are limited by years. If the lender's loan contract takes effect less than one year, it is best not to apply for early repayment, because the bank may charge one month's interest as liquidated damages according to the amount of the lender's early repayment. Therefore, when considering prepayment, you should choose the right time, otherwise you will spend an extra month's interest and waste some money.

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

The procedures for repaying the loan in advance are the same as those for applying for a loan. The borrower also needs to go through legal procedures and must submit a written application one week to one month in advance; And you need to agree on a specific repayment time. During this period, the lender will also bring some necessary documents, such as ID cards and loan contracts, and go to the bank to fill out the repayment application form and repayment agreement in advance.

Prepare enough funds.

If it is a borrower who has paid off all the balance, after the bank calculates the remaining loan amount, the borrower should save enough money to repay the loan in advance.