Many banks can handle loan prepayment business. After prepayment, you don't have to pay interest afterwards, but you need to pay liquidated damages.

Different banks have different regulations on this kind of fine:

1, Industrial and Commercial Bank of China

If the prepayment is less than one year, 5% of the prepayment amount will be charged; If the repayment is made in advance after one year, no penalty will be charged.

2. China Merchants Bank

If the prepayment is less than one year, interest shall be charged for at least three months relative to the actual repayment amount; If repayment is made in advance after one year, at least 1 month interest will be charged relative to the actual repayment amount.

3. Agricultural Bank of China

If the prepayment is less than one year, the penalty will be charged according to the calculation formula of principal × monthly interest rate; If the repayment is made in advance after one year, no penalty will be charged.

4. Bank of China

If the prepayment is less than one year, a penalty of no more than 6 months' interest will be charged; If the repayment is made in advance after one year, no penalty will be charged.

5. China Construction Bank

If the prepayment is less than one year, 3% of the prepayment amount will be charged; 2% for prepayment after one to two years; Repay in advance after two to three years, and charge 1%.

6. China Everbright Bank

If the prepayment is less than one year, 3% to 6% interest will be charged as liquidated damages; If the repayment is made in advance after one year, no penalty will be charged.

Can the loan be paid off in advance?

According to the regulations of the bank, customers need to submit a written application one week to one month in advance to 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, and the bank will automatically deduct the money.

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 bank's repayment is different, and some borrowers who repay the loan 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 desire of being debt-free 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 will reduce the repayment pressure.

Note: In the loan contract signed between the lender and the bank, there is a clause of "collecting liquidated damages for early repayment", so it is reasonable for the bank to collect liquidated damages for early repayment. However, due to market competition, service image and other factors, the bank did not charge the lender.

If the lender repays the loan at the end of the year or the end of the season when the bank does not approve it, this behavior will directly affect the completion of the bank's loan index, so the bank is likely to charge liquidated damages as appropriate.

Can the loan be paid off in advance by installments?

You can apply for prepayment of the loan.

Early repayment

Prepayment is generally divided into two ways: partial prepayment and full prepayment. According to different repayment methods, the borrower can choose to reduce the term or amount.

1. prepayment, that is, the customer pays off all the remaining loans at one time (without interest, but the interest paid is not refundable).

2. Some loans are repaid in advance, and the monthly repayment amount of the remaining loans remains unchanged, shortening the repayment period (saving more interest).

3. For partial prepayment, the monthly repayment amount of the remaining loans will be reduced and the repayment period will remain unchanged (reducing the monthly payment burden).

4. If part of the loan is repaid in advance, the monthly repayment amount of the remaining loan will be reduced and the repayment period will be shortened (saving more interest).

5. The total principal of the remaining loans remains unchanged, but the repayment period is shortened (the monthly payment is increased and the interest is reduced).

Extended data:

I. Requirements for prepayment

1. The borrower can only propose to repay part or all of the loan in advance for the first time after repaying the principal and interest of the loan for six months normally;

2. For serious loan management, the lending institution has set a minimum amount for the prepayment of some loans, which generally needs more than 6,543,800 yuan;

3. The general borrower needs to notify the lending institution to repay the loan in advance 65,438+00 days or 65,438+05 days in advance, and must submit a written application to the lending institution with the original loan contract, bank repayment savings card, monthly statement of fund repayment, my ID card and other materials, which is approved by the lender;

4. The borrower still needs to repay the original monthly loan principal and interest repayment amount in the current month, and at the same time deposit the loan amount to be repaid in advance into the bank savings card.

Two. Matters needing attention in handling advance payment

1, banks are allowed to repay loans in advance at different times. Most banks can apply for early repayment after one year of repayment, and some banks can repay loans in advance at any time. Pay attention to the repayment time of the loan bank when repaying the loan in advance.

2. The loan term of general mortgage is more than 10 years. During this period, it is inevitable for banks to adjust interest rates. If they are in the interest rate cut channel, it is obvious that the faster they adjust, the more cost-effective.

3. Whether the loan is repaid in advance or according to the contract, the mortgage registration must be cancelled after the loan is paid off.