Need to make an appointment in advance
To repay the loan in advance, the borrower must first sign a supplementary agreement with the bank, which is mainly used to change the loan amount or loan term. Secondly, in order to handle the formalities of prepayment, banks generally require borrowers to apply for prepayment a few days in advance, and banks should examine and approve the prepayment application after receiving it from consumers. This process takes up to ten days and a half months or even a month, and the shortest is 5-7 working days. Third, banks have different requirements for early repayment of loans, and need to communicate with relevant individual loan centers in advance.
Limited number of prepayments
It is understood that individual banks will limit the number of times borrowers repay loans in advance. For example, it is stipulated that repayment can only be made three times a year. Experts pointed out that mortgage borrowers should conduct a more in-depth investigation on the loan services, loan types, repayment methods and repayment procedures of various banks in advance when buying a house with loans, which is not only a good way to improve the requirements for personal loans of banks, but also a good way to protect the vital interests of mortgage borrowers.
Clear interest calculation
According to the relevant provisions of the Contract Law: "If the borrower repays the loan in advance, unless otherwise agreed by the parties, the interest shall be calculated according to the actual loan period." Therefore, when the borrower chooses to repay the loan in advance, he should pay the bank interest according to the actual loan period. For example, Ms. A has borrowed money from the bank for 20 years and has paid it back for 5 years. Now she wants to repay the loan in advance. At present, Ms. A's monthly repayment date is mid-month 15. After she made an appointment with the bank to repay the loan in advance and passed the examination and approval, the bank informed Ms. A that she could go to the bank for prepayment procedures and pay the prepayment amount on the 20th of next month. Then, at the stage when Ms. A has not gone through the prepayment formalities, that is, from the prepayment date of this month (15) to the time when the bank allows prepayment, during this period, she still needs to pay the actual loan interest to the bank.
Don't forget to cancel the mortgage and surrender.
After the lender repays the loan in advance, the bank will issue a certificate, and the borrower will go to the mortgage department of the real estate management department to cancel the mortgage registration with the loan settlement certificate issued by the bank. In addition, after paying off all the loans in advance, the home insurance contract of the original individual housing loan was also terminated in advance. The borrower can bring the original insurance policy and the proof of paying off the loan in advance to the insurance company to refund the unexpired insurance premium. It should be noted that if the property buyers do not pay off all the loans in one lump sum, they cannot ask for surrender.