Reasons why banks are unwilling to repay loans in advance
1 leads to a decrease in bank income: a large part of bank income comes from loan interest income. If users repay their mortgages in advance in batches, the bank's income will drop sharply.
2 There may be customer churn: mortgage customers are quality customers for banks. After the user chooses to repay the loan or settle the mortgage in advance, the risk of customer loss is greater for the bank. Banks may not be able to retain customers with deposit products or wealth management products.
3. Increased labor costs for banks: When borrowers submit applications for early mortgage repayment, banks need to review users. The time and manpower required for the audit belong to the expenditure cost. Once the user is allowed to repay the mortgage in advance, the bank will lose this part of the labor cost.
4 Affect the bank's lending plan: In fact, the bank has a corresponding lending plan every year, and the mortgage amount will be tightened after the plan is completed. The early repayment of the mortgage by the borrower will have a certain impact on the bank's lending plan, which may lead to the failure of the plan.
In short, the impact of users' choice of mortgage prepayment on banks is still relatively large. Banks have also taken some measures to delay users' early repayment of mortgage loans, and many banks have been waiting in line for months to handle the formalities of early repayment.