Prepayment includes full prepayment, partial prepayment with unchanged loan term and partial prepayment with shortened loan term. The loan bank can only accept the application for prepayment of personal loans from the second repayment month. ?

In order to limit prepayment, some lending institutions put forward a concept called substantial prepayment. Different lending institutions have different standards for substantive behavior, but generally it means that the prepayment amount of the borrower exceeds 20% of the principal balance within 12 months. Under this concept, some banks require borrowers to repay in advance to pay liquidated damages.

Extended data:

Precautions for advance payment

First, don't forget to surrender.

After the borrower repaid all the loans in advance, the original individual housing loan contract of Jiabao was also terminated in advance. According to the relevant regulations, the borrower can bring the original insurance policy and proof of paying off the loan in advance, and return the premium paid in advance to the insurance company on a monthly basis.

Second, don't forget the tax refund.

In addition, don't forget to go to the tax department for tax refund. When purchasing a commercial house, all the family members who can get tax refund should be written into the purchase contract as the property owners, and after signing the contract and paying the house price, they should apply for "deducting the personal income tax paid by the buyer" and obtain their "general tax payment book".

Third, don't prepay in the first year.

It should be noted that you should not repay the loan in advance within the first year. According to the relevant provisions of provident fund loans, the repayment amount should be in advance after 1 year repayment, and the repayment amount should exceed the repayment amount of 6 months.

Baidu encyclopedia-portfolio loan

Baidu encyclopedia-advance payment