No credit institution today has the right to prohibit its borrower to pay off the existing debt before the established period, which is prescribed in the loan agreement. However, not every potential borrower delves into such subtleties of the contract, therefore there are situations when the borrower is after full repayment of contractual obligations falls into the number of debtors.
Financial organizations will not be able to prohibit the arrears early payment, but they can establish certain terms of payment. Often, lenders agree to produce early repayment, in the event that the borrower reported in advance to a credit institution about this intention.
This is done by submitting an application, the deadline for submitting the application in various credit organizations. Someone agrees to consider the application for a couple of weeks, and some agree to accept it no earlier than 30 days before the repayment of credit obligations. Only a small part of the institutions are ready to take early repayment of debt in full without notice.
Financial institutions can accrue interest on the loan only for the period during which the borrower used its means. The borrower in turn, with early repayment should be made not only the «body» loan, but also interest.
The law also prohibits financial institutions to take the commission for early repayment of debt debt by the borrower. A number of financial institutions have not wanted to lose a significant part of the profits, so new commissions have come up with, for example, a commission for changing the payment schedule.
Since financial institutions modify loan conditions on the basis of legislation, before signing an agreement, the borrower must learn in advance about the lender on possible commissions that are charged by a financial organization in early repayment.
Even if the borrower warned a credit institution in advance, that he wants to take advantage of the operation of early repayment, after the amount was made, in a few days, it is necessary to refer to the lender and to check whether the debt was redeemed.
There are cases where a bank specialist calls the amount that is not enough to complete the closure of the loan agreement, as it forgets to add commissions or interest to the amount of commissions or interest. As a result, the amount of debt can be several rubles. And if the borrower learns about it a few months later, then it can grow significantly, and in addition, the borrower will receive a spoiled credit history for delay.
That is why it is necessary to visit the bank in which the loan was issued in order to make sure that the loan was completely repaid.
We hope that this information was useful for you. If you are going to repay the loan ahead of schedule, you will notify the bank about the decision in advance, and after the completion of the procedure, require the necessary documents. It is necessary in order to continue, in case of problems, protect your rights.