Specifically, if the borrower prepays, the bank will recalculate the loan interest and repayment period according to the actual prepayment days and repayment amount. Generally speaking, the more days of prepayment, the greater the interest concession. In addition, early repayment can reduce the burden on borrowers and improve repayment ability and credit rating. However, early repayment requires a certain penalty, and the specific amount can be consulted with relevant banks and provident fund management departments.
Preparations for prepayment of provident fund loans are as follows:
1, provident fund loans can be repaid in advance, and there are certain preferential policies for repaying loans in advance. Specifically, if the borrower prepays, the bank will recalculate the loan interest and repayment period according to the actual prepayment days and repayment amount. Generally, the more days of prepayment, the greater the interest concessions;
2. You need to pay a certain penalty for prepayment, and you can consult the relevant banks and provident fund management departments for the specific amount;
3. The borrower needs to apply for early repayment in the provident fund management department, and then the bank will recalculate the repayment amount, repayment period and interest, and finally the borrower can repay;
4. Preferential policies for prepayment of provident fund loans include: borrowers can reduce the amount of interest paid, shorten the repayment period and reduce the repayment burden;
5. The borrower should first consult the regulations of relevant banks and provident fund management departments to understand the specific procedures and processes of prepayment; Pay attention to whether the repayment amount is enough when repaying in advance, so as not to affect personal daily life; After prepayment, the repayment account information should be updated in time to avoid repayment problems.
To sum up, provident fund loans can be repaid in advance, but attention should be paid to relevant regulations and procedures to avoid unnecessary troubles and losses.
Legal basis:
Article 677 of the Civil Code of People's Republic of China (PRC)
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.
Article 26 of the Regulations on the Management of Housing Provident Fund
Workers who have paid housing provident fund can apply for housing provident fund loans to the housing provident fund management center when purchasing, building, renovating or overhauling their own houses.
The housing provident fund management center shall make a decision on whether to grant loans within 15 days from the date of accepting the application, and notify the applicant; Where a loan is granted, the entrusted bank shall go through the loan formalities.
The risk of housing provident fund loans shall be borne by the housing provident fund management center.