As for the collection standard of liquidated damages, most of them charge about 2% to 5% of the repayment amount, and some will charge about two to three months more interest as liquidated damages (please call the handling branch or the customer service staff of the auto consumption finance company for details).
Early repayment is the part that the borrower pays more than the monthly principal and interest. The prepayment without fully paying off the mortgage loan is called partial prepayment. Through contractual arrangements, it is forbidden to repay in advance within the agreed time limit, which is called lock-up period. The lock-up period is 2- 10 years. After the lock-up period, the protection of prepayment usually adopts other methods, such as prepayment deduction or rate of return maintenance fee.
Early repayment includes three situations: full repayment in advance, partial repayment in advance with the loan term unchanged, and partial repayment in advance with the loan term shortened. The loan bank can only accept the application for prepayment of personal loans from the second repayment month. Although prepayment can save interest expenses, there are four types of buyers who are not suitable for prepayment.
Procedures for prepayment:
Repayment in full in advance: the loan bank shall go through the formalities of prepayment in full after reviewing the relevant materials.
Repayment in advance with the loan term unchanged: the loan bank instructs the borrower to fill in the relevant agreement. If the original loan guarantee method is mortgage+insurance, and the mortgage registration has not been handled, the original insurance policy, my ID card and relevant agreements shall be presented to the insurance company designated by the city center for the insurance reduction procedures, and the final agreement shall be sent to the corresponding sub-centers by the loan bank in time.
Where the original loan guarantee method is mortgage+insurance and the mortgage registration has been completed, and the borrower who chooses non-mortgage+insurance applies for partial repayment in advance and shortens the loan term: the loan bank instructs the borrower to fill in the relevant agreement, and the signed agreement is sent to the corresponding sub-center in time by the loan bank.
The original loan guarantee method was mortgage+insurance, which is still within the insurance period, and the mortgage registration has not been completed yet: the borrower can apply for partial repayment in advance and shorten the loan period, and can go directly to the guarantee center for handling.
According to the bank's regulations, customers who repay in advance need to submit a written application one week to one month in advance and 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, which will be automatically deducted.