Legal analysis: 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 within 12 months, the borrower's prepayment amount exceeds 20% of the principal balance. Second, the time and amount of repayment required. In fact, you can apply for repayment in advance if you don't want to apply. Some banks require you to repay the loan for one year before you can apply for prepayment, some require half a year, some also stipulate that the repayment amount must be an integer multiple of 1 0,000, and some even stipulate the repayment times, and you can only repay the loan in advance once a year. Even provident fund loans with relatively simple prepayment operation have similar requirements. For example, the minimum repayment amount per time is 10000 yuan, the loan principal and interest are not less than 12 months, and the loan is also paid once a year. Third, how much penalty should I pay for repaying the loan in advance? In addition to the time and amount of repayment, some banks have to charge liquidated damages for repaying loans in advance, because applying for early repayment means less interest on loans paid to banks, so they can make up for this by charging liquidated damages. It should be noted that there are two main ways to collect liquidated damages:

1, calculated according to 2%-5% of the outstanding balance at the time of prepayment, such as 1 10,000 loan, and 500,000 yuan remains after prepayment, then 1 1,000-25,000 yuan shall be paid as penalty;

2. Calculated according to the interest charged for several months, such as the penalty interest for repaying the loan for less than one year in three months; Penalty interest of two months for repayment over one year and less than two years; There is no penalty interest for repaying loans for more than two years. Note: Due to the different loan types of different banks, there are some differences in the requirements for early repayment. For the above information about the time, amount and liquidated damages of prepayment, it is best to ask the bank before signing the loan contract, and write relevant questions into the contract. Fourth, after repaying the loan in advance, the remaining loans may not enjoy preferential interest rates. Usually, there are two main ways to repay the mortgage in advance. One is to pay off in full, and the other is to pay off in advance. Because the current loan amount is large, few people can pay off the loan at one time, so most buyers will choose to pay off the loan in part, and some prepayment can be divided into two ways, one is to shorten the loan period and keep the monthly repayment amount unchanged, and the other is to reduce the monthly repayment amount and keep the loan period unchanged. Shortening the loan term can save interest, but the remaining loan after prepayment needs to be re-signed, and the bank will re-examine the loan qualification of the purchaser and implement it according to the latest loan interest rate policy, so that the original low interest rate discount cannot be enjoyed. If the borrower has credit problems during this period, he may even raise interest rates, so buyers must pay attention to this.

Legal basis: Civil Code of People's Republic of China (PRC).

Article 577 Where a party fails to perform its contractual obligations or fails to perform its contractual obligations in conformity with the contract, it shall be liable for breach of contract such as continuing to perform, taking remedial measures or compensating for losses.

Article 578 Where a party clearly expresses or shows by his own actions that he will not perform his contractual obligations, the other party may require him to bear the liability for breach of contract before the time limit for performance expires.

Article 579 If one party fails to pay the price, remuneration, rent or interest, or fails to perform its debts in other currencies, the other party may demand a notice.

Article 584 Where a party fails to perform its contractual obligations or fails to perform its contractual obligations in conformity with the contract, thus causing losses to the other party, the amount of damages shall be equivalent to the losses caused by the breach of the contract, including the benefits that can be obtained after the performance of the contract; However, it shall not exceed the losses that the breaching party foresaw or should have foreseen when concluding the contract.