According to the regulations, China Bank can apply for early repayment after the loan term expires for six months. You need to make an appointment with the bank two weeks in advance, and you can do it on the 5 th of each month 1- 15. The repayment amount is not less than 10000 yuan, and there are two opportunities for early repayment every year.

If the loan is less than one year, the penalty interest for prepayment shall not exceed six months at the longest (calculated according to the loan interest rate on the prepayment date).

After the loan is over one year, there is no penalty for prepayment.

What are the requirements for repaying loans in advance?

First, the borrower can only propose to repay part or all of the loan in advance for the first time after six months of normal repayment of the principal and interest of the loan;

Second, for serious loan management, lending institutions have set a minimum amount for early repayment of some loans, which generally needs more than 6,543,800 yuan;

Third, the borrower generally needs to notify the lending institution 18 days or 15 days in advance to repay the loan 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 must be reviewed and approved by the lender;

Fourth, 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.

After confirmation, the lending institution will recalculate the loan balance and the final repayment period after repaying part of the loan in advance according to the calculation principle of "interest first, capital later, equal monthly decrease, and shortening the repayment period" in the interest repayment method determined in the original loan contract, reprint the "Monthly Statement of Capital Repayment" and re-sign the "Loan Modification Contract" with the borrower.

The loan interest decreases as the principal decreases. So, how can we pay less interest? One way is to choose the average capital repayment method before the loan. Because the "average capital repayment method" repays a lot of principal in the early stage, when you repay it in advance, the loss of interest is small. However, due to the high interest and low principal paid in the early stage, the "equal principal and interest repayment method" will have some losses when repaying in advance. Therefore, it is very important to choose a reasonable repayment method.

Take Mr. Wang's house purchase as an example: the annual interest rate of the loan is 5.04% and the monthly interest rate is 4.2‰. Under the method of equal principal and interest repayment, the total interest repaid by the borrower within 20 years after obtaining the loan is 147320 yuan; In case of repayment in average capital, the total interest paid by the borrower in 20 years after obtaining the loan is 125, 19 1.26 yuan. It can be seen that with the passage of time, by the 20th year, the repayment method in average capital will pay less interest of 22 128.74 yuan than the repayment method of equal principal and interest.

Another method is to determine the best time for prepayment. When is the best time to prepay? Experts suggest that it is best within five years. In the process of repaying loans, with the improvement of economic strength, many people are willing to repay part or all of the loans in advance. From February 2, 20021day, the annual interest rate of bank loans is 3.6% for five years, 4.77% for commercial loans, 4.05% for five years and 5.04% for commercial loans. Therefore, when determining the prepayment, try not to cross the optimal time period of 5 years. Undoubtedly, as long as the loan is repaid in advance, no matter whether Mr. Wang adopts the equal principal and interest repayment method or the equal principal repayment method, he can repay the loan interest less.

The third way is to determine the specific way to repay the loan in advance. If the repayment method of equal principal and interest is adopted, the total repayment amount is 397 320 yuan. After the borrower repays the loan for five years, that is, in the 60th month, the remaining loan principal becomes 234 990 yuan. For prepayment, there are two ways: one is to pay off all the loans in advance, and pay off the remaining loan principal of 234 yuan and 990 yuan in full.

Second, part of the prepayment, such as 50,000 yuan, the remaining loan principal becomes184,990 yuan, the remaining loan term becomes 180 months, and the loan interest rate is 5.04%. According to the formula of equal monthly repayment of principal and interest, the monthly repayment amount becomes 1225 yuan, and the monthly repayment amount decreases by 430.5 yuan. Further calculation shows that if the loan is fully paid off, the buyer will pay less interest of 63 thousand yuan; When the loan is partially repaid, the buyer pays less interest 27, 490 yuan.