The loan contract stipulates that repayment can be made in advance at any time, so in the first year of the loan, the user can repay in advance. The loan contract stipulates that the loan repayment time must be one year before advance repayment is allowed. In the first year of the loan, users cannot make early repayment. The repayment time must be one year before they can make early repayment. The loan contract will stipulate early repayment. Users can read the loan contract carefully. As long as the contract agrees that the user can repay in advance at any time, the user can repay in advance in the first year of the loan.

Early repayment means that the borrower applies to the bank for early repayment of his/her loan part, and ensures that the loan in the previous month has not been overdue and that the loan of the current month is repaid; the loan part is repaid in one go according to the date specified by the bank. or partially paid off.

Premature loan repayment methods:

Premature loan repayment is generally divided into two methods: partial loan repayment in advance and full loan repayment in advance.

Depending on the repayment method, the borrower can choose a reduced mortgage term or a reduced mortgage amount. It is understood that most banks currently provide five ways to repay loans in advance for customers to choose from.

The first type is full early repayment, that is, the customer pays off the entire remaining loan at once. (There is no need to repay interest, but the interest paid will not be refunded)

The second type is partial early repayment, and the remaining monthly repayment amount of the loan remains unchanged and the repayment period is shortened. (Save more interest)

The third type is partial early repayment. The remaining loan will reduce the monthly repayment amount and keep the repayment period unchanged. (Reduces the monthly payment burden, but the degree of savings is lower than the second type)

The fourth type, partial early repayment, will reduce the monthly repayment amount of the remaining loan and shorten the repayment period. (Save more interest)

The fifth method is to keep the total principal of the remaining loan unchanged and only shorten the repayment period. (The monthly payment is increased and part of the interest is reduced, but it is relatively uneconomical)

Financial experts suggest that if you repay early, you should reduce the principal as much as possible and shorten the loan period so that you pay less interest.

Notes:

1. You must ask the requirements for early repayment

The borrower must repay the loan in advance for more than half a year, or even individually The bank requires that the loan has been repaid for more than one year. Banks generally require borrowers to submit written or telephone applications 15 working days in advance. Banks must review and approve the borrower's application for early repayment, so it usually takes about a month. In addition, various banks have different requirements for early repayment. For example, some banks stipulate that early repayment must be an integral multiple of 10,000, and some banks require a certain amount of liquidated damages.

2. Preparation of loan repayment documents in advance

If the borrower wants to repay the loan in advance, he or she must bring his or her ID card and loan contract to the borrower after applying by phone or in writing. The bank handles the approval procedures. If the borrower has paid off the entire balance, after the bank calculates the remaining loan amount, it will be easier for the borrower to deposit enough money to repay the loan early. If you are a customer or owner of a remortgage business, it is best to find a professional guarantee agency to do entrusted notarization to avoid the risk of the owner not buying the property after the owner repays the loan in advance or the owner using the down payment to help the owner pay off the balance, so that the owner’s price increases.

3. Don’t forget to surrender the guarantee and release the mortgage when repaying the loan in advance

After the lender settles the entire balance in advance, the bank will issue a settlement certificate, and the borrower will bring the loan settlement certificate issued by the bank. Bring the original certificate, original copy of the original policy and invoice, call the relevant insurance company and make an appointment to cancel the policy. When a borrower applies for a loan, the bank will register the mortgage. After the customer has settled the loan, he must not forget to release the mortgage. The borrower must bring the real estate certificate, settlement certificate and other mortgage rights certificates in the bank to the construction committee of each district to handle the mortgage release. In this way, your property can be said to be completely your own property.