Commercial loans can be repaid in advance.
Commercial loans can be repaid in advance, but the lender who repays in advance needs to submit a written application one week to one month in advance to agree on the repayment date. Most banks have a time limit for prepayment, and prepayment can only be made after a certain period of repayment. In addition, if they repay in advance, there may be some liquidated damages, and the collection standards of liquidated damages in different banks are different.
Provisions on penalty interest for bank prepayment
1. China Merchants Bank: Repayment should be made in advance within one year, and interest should be charged for at least three months relative to the actual repayment amount, and only one month after one year.
2. China Construction Bank: 3% of the prepayment amount will be charged if the prepayment is less than one year. One to two years 2%, two to three years 1%.
3. Agricultural Bank: If the prepayment is less than one year, it will be charged according to the principal × monthly interest rate, and no penalty will be charged for the loan for one year.
4. Industrial and Commercial Bank of China: 5% of the prepayment amount will be charged for prepayment less than one year, and no penalty will be charged for prepayment after one year of loan, just like Agricultural Bank.
5. Bank of China: If the prepayment is less than one year, a penalty of no more than six months' interest will be charged. If the loan is repaid in advance after one year, it will not be charged like ABC.
6. Bank of Communications: There are provisions for prepayment, which is at least 6 times of the monthly repayment. Some prepayments can be paid once a year for free.
7. Guangfa Bank: Repay in advance within one year, and charge two months' interest as penalty. If the loan is repaid in advance after one year, like the Agricultural Bank of China, there is no penalty.
8. China Everbright Bank: 3% ~ 6% interest will be charged as penalty for prepayment within one year. As long as it exceeds one year, like ABC, there is no penalty interest.
9. Shanghai Pudong Development Bank: If the prepayment is less than one year, there are two ways of liquidated damages: one is 1.5% interest, and the other is 3% interest. No liquidated damages will be charged after the loan is over one year.
10, SDB: The requirements are stricter than those of ordinary banks, and the general term is two years. As for the amount of default within two years, it depends on the contract.