Is it possible to return to my account the excessively paid interest of the loan with early repayment? How is interest recalculated for early repayment of a loan?
Thanks to the decision of the Supreme Court of the Russian Federation, borrowers who have fully repaid a consumer or mortgage loan in advance are entitled to a refund of part of the interest. Those that were accrued for the period when the debtor no longer used the money of the bank. But one thing is the decision of the judiciary and a completely different practice. Let's see how the early repayment of a loan at Sberbank affects the fate of interest accrued? Does the credit institution return part of the money to the borrower back? Let's try to find the answers to these questions.
From a legal point of view, any borrower who has fully repaid a loan ahead of schedule has a right to interest repayment. But actually declaring your right is not always advisable. When does this make little sense?
- If the loan is paid according to a differentiated scheme. When you pay the lion's share of debt in the first half of the contract term, including the “body” of the loan, the unused interest will be negligible or not at all.
- If the loan term is too short. When applying for a loan for 3 months, the percentage will be very small and it will be distributed more or less evenly for each payment. So even if the customer is credited with a refund, he will not be worth the paper on which he needs to state his claim.
Before considering the issue of returning interest, you need to study your repayment schedule.
- Full, early repayment of the debt occurred closer to the end of the contract. When there are 2-3 payments under the contract, the client can make an early repayment, but he will repay the “body” of the loan, since interest has already been paid. In this case, he may demand a refund of unused interest, but the amount will be very small.
For some, this is a matter of principle. Then you can understand why a person demands a refund when he overpaid the bank 20,000 rubles in the form of interest, and then returned 200 rubles. "Not a single extra penny to the bloodsucker banks."
It is quite another matter when the client must pay the debt within 5 years, and returns it in full after 2 years. In this case, you need to write a statement, because with the annuity method of repayment, in the first half of the contract term, the bank charges interest on the borrower for all 5 years. But after all, the borrower used the money only for 2 years, and he paid the interest for the remaining three years in vain. In this situation, there is a chance to take back a tidy sum, it remains to figure out how to do it.
Return procedure
To begin with, the borrower must fulfill the obligation in full. To do this, he needs to know how much he owes to Sberbank at the moment. After that, the debtor leaves an application in the established form. In it, he indicates the amount that he wishes to deposit ahead of schedule and the date on which he wishes to do so. Further, the borrower deposits the amount up to a penny to the write-off account and waits for the write-off of the amount. After that, the credit institution must close its credit account. At the next stage, the former borrower already asks the bank for a certificate of lack of obligations and only after that applies for a return of interest.
First, a return application is submitted. His form is provided to the client by an employee of a branch of Sberbank. In it you indicate:
- your passport data;
- information about the loan agreement;
- essential terms of the contract, according to which the client early paid off the obligations;
- card or account number to which the bank should make a refund.
The former borrower shall attach to his application a certificate of lack of obligations received at the bank and a copy of the loan agreement. Sberbank will need up to 5 business days to review documents, make settlements and transfer money. If the refund process is unreasonably delayed, or if the refund is not made in full, the client has the right to contact the management of the bank’s branch, the senior management in the supervisory authorities or the court.
Is it worth it to mess with?
Many borrowers still believe that banks are trying to work more outside the legal field and even if the bank “squeezed” some amount from the debtor, then it will not return it for anything. We will not speak for all the banks, but Sberbank is definitely working in the legal field, and if the borrower seeks a refund and there are reasons for that, the money will be returned to him without any problems. As a client of Sberbank, the entity has a real opportunity to return the money and use its legal right, this is 100% information.
As for the “sheepskin and its manufacture,” you can calculate it yourself. Given the current payment schedule used by Sberbank and provided that the borrower repays the loan in the first half of the term, at a rate of 16% per annum, he can repay up to 8% of the loan amount in the form of unused interest. Whether it is a lot or a little, the borrower decides in each case. Well, for example, if a loan of 100,000 rubles was taken for 2 years at 16% per annum and was repaid after 1 year, you can repay up to 8,000 rubles. It seems like a trifle, but to arrange gatherings in a wide circle to mark the early repayment of the loan is enough!
So, we described the procedure for repaying part of the interest on a loan upon early repayment, substantiated why this should be done and told in which cases it is worth “bothering” about this and in which it is not worth it. We hope that the information presented by us will be useful. Good luck
Another way to repay the loan, let's call it uniform, is that the borrower repays the principal in equal installments, paid periodically, for example monthly. Along with a decrease in principal debt, the amount of interest decreases, as well as the size of the monthly payment. Each month, the borrower is required to pay various amounts to repay the loan and pay interest. As a rule, the annuity method of repaying the loan and paying interest is more convenient for the borrower, who can pay the same amount every month without looking at the schedule of payments on repaying the loan.
The borrower has the right to early repayment of the loan (paragraph 2 of article 810 of the Civil Code of the Russian Federation). The borrower, who repaid the loan ahead of schedule, may consider that he has overpaid the interest. This opinion of the borrower is based on the fact that if he took a loan on the same conditions, but for a shorter period (from the time the loan was paid back until it was repaid early), he would pay less than what he actually paid. Such borrowers file lawsuits in the courts to recover from the banks the difference between the interest actually paid and the interest payable, according to the borrowers.
This position of the borrower also has a psychological basis. Often, interest is such a significant part in the first annuity payments that the borrower has the impression that he pays interest not only for the past period, but also for future periods. This is typical for long-term loans.
For the bank, the relevance of this situation is that the courts sometimes make decisions in favor of the borrower:
Appeal ruling of the Yaroslavl Regional Court dated 05/27/2016 in case No. 33-3732 / 2016 1;
The determination of the judicial board for civil cases of the Supreme Court of the Russian Federation of 01.03.2016 No. 51-KG15-14 2;
Appeal ruling of the Moscow City Court of 04.04.2016 in case No. 33-11479 / 2016 3;
Appeal ruling of the Rostov Regional Court of 01.25.2016 in case No. 33-715 / 2016 4.
We illustrate the position of such a borrower on a conditional example. Suppose a borrower took a loan of 1.5 million rubles for a period of 12 months at 18% per annum (1.5% per month). The borrower repaid the loan ahead of schedule, after 8 months.
The repayment schedule of the loan with its uniform repayment is presented in table. 1.
Month |
Repayable principal thousand rubles |
Repayable interest thousand rubles |
Monthly payment amount (debt + interest), thousand rubles |
thousand rubles |
---|---|---|---|---|
Issuance of credit |
1500 |
|||
22,5 |
147,5 |
1375 |
||
20,625 |
145,625 |
1250 |
||
18,75 |
143,75 |
1125 |
||
16,875 |
141,875 |
1000 |
||
13,125 |
138,125 |
|||
11,25 |
136,25 |
|||
9,375 |
134,375 |
|||
132,5 |
||||
5,625 |
130,625 |
|||
3,75 |
128,75 |
|||
1,875 |
126,875 |
|||
Total |
1500 |
146,25 |
1646,25 |
|
Interest for 8 months |
127,50 |
The repayment schedule of the loan with its uniform repayment from the point of view of the borrower (if he took the loan not for 12, but for 8 months) is presented in table. 2.
Month |
Repayable principal thousand rubles |
interest thousand rubles |
Monthly Payment Amount thousand rubles |
The balance of the main debt after the payment of a monthly payment, thousand rubles |
---|---|---|---|---|
Issuance of credit |
1500 |
|||
187,5 |
22,5 |
1312,5 |
||
187,5 |
19,6875 |
207,1875 |
1125 |
|
187,5 |
16,875 |
204,375 |
937,5 |
|
187,5 |
14,0625 |
201,5625 |
||
187,5 |
11,25 |
198,75 |
562,5 |
|
187,5 |
8,4375 |
195,9375 |
||
187,5 |
5,625 |
193,125 |
187,5 |
|
187,5 |
2,8125 |
190,3125 |
||
Total |
1500 |
101,25 |
1601,25 |
The borrower will demand from the bank the difference between the interest actually paid for 8 months (127.5 thousand rubles) and the interest that the borrower would be required to pay with an 8-month loan (101.25 thousand rubles) - 26.25 thousand rubles . Of course, these requirements are based on an incorrect calculation.
First, the borrower wants to apply the consequences of a hypothetical situation, which in reality was not - as if he took a loan for a period of 8 months. Meanwhile, the borrower actually took a loan for 12 months. Secondly, the loan repayment schedule from the point of view of the borrower is not true, since the borrower actually repays the main debt according to the 12-month schedule (125 thousand rubles per month), and not according to the 8-month schedule (187.5 thousand rubles per month). Thirdly, the interest paid by the borrower before the early repayment of the loan includes only the fee for the period of actual use of the loan and does not include the fee for future periods (after the early repayment of the loan). This follows from the formula for calculating interest: the amount of interest in each line is equal to 1.5% of the balance of the main debt in the previous line. A similar situation occurs in the case of repayment of the loan by annuity payments (table. 3).
Month |
Repayable principal thousand rubles |
Repayable interest thousand rubles |
Monthly Payment Amount thousand rubles |
The balance of the main debt after the payment of a monthly payment, thousand rubles |
---|---|---|---|---|
Issuance of credit |
1500 |
|||
115,02 |
22,5 |
137,52 |
1384,98 |
|
116,7453 |
20,7747 |
137,52 |
1268,23 |
|
118,50 |
19,02 |
137,52 |
1149,74 |
|
120,27 |
17,25 |
137,52 |
1029,46 |
|
122,08 |
15,44 |
137,52 |
907,39 |
|
123,91 |
13,61 |
137,52 |
783,48 |
|
125,77 |
11,75 |
137,52 |
657,71 |
|
127,65 |
9,87 |
137,52 |
530,05 |
|
129,57 |
7,95 |
137,52 |
400,49 |
|
131,51 |
6,01 |
137,52 |
268,97 |
|
133,49 |
4,03 |
137,52 |
135,49 |
|
135,49 |
2,03 |
137,52 |
0,00 |
|
Total |
1500,00 |
150,24 |
1650,24 |
|
Interest for 8 months |
130,21 |
The loan repayment schedule for repayment by annuity payments from the point of view of the borrower (if he took the loan not for 12, but for 8 months) is presented in table. 4.
Month |
Repayable principal thousand rubles |
Repayable interest thousand rubles |
Monthly Payment Amount thousand rubles |
The balance of the main debt after the payment of a monthly payment, thousand rubles |
---|---|---|---|---|
Issuance of credit |
1500 |
|||
177,876 |
22,500 |
200,376 |
1322,124 |
|
180,544 |
19,832 |
200,376 |
1141,580 |
|
183,252 |
17,124 |
200,376 |
958,328 |
|
186,001 |
14,375 |
200,376 |
772,326 |
|
188,791 |
11,585 |
200,376 |
583,535 |
|
191,623 |
8,753 |
200,376 |
391,912 |
|
194,497 |
5,879 |
200,376 |
197,415 |
|
197,415 |
2,961 |
200,376 |
0,000 |
|
Total |
1500,000 |
103,008 |
1603,008 |
The borrower will require the bank to return the difference between the interest actually paid for 8 months (130.21 thousand rubles) and the interest that the borrower would have been required to pay with an 8-month loan (103.008 thousand rubles) - 27.202 thousand rubles. These requirements are also based on incorrect calculation, for the same reasons.
Interest that is part of the annuity payment and paid by the borrower before the early repayment of the loan includes only the fee for the period of actual use of the loan and does not include payment for future periods (after the early repayment of the loan). This follows from the formula for calculating annuity interest itself: the amount of interest in each line is 1.5% of the balance of the principal debt in the previous line.
Unfortunately, insufficient mathematical training of judges leads to the fact that such requirements of borrowers are satisfied in some cases. How can we counter such requirements of borrowers?
First, it is necessary to explain in detail to borrowers the procedure for calculating interest and the consequences of early repayment of a loan. Clarifications should preferably be indicated directly in the loan agreement. This will reduce the likelihood of a lawsuit. In the event that a lawsuit is nevertheless filed, this will not allow the borrower to refer to his ignorance.
Secondly, it is advisable to offer borrowers an alternative procedure for repaying a loan in addition to annuity. This will not allow the borrower to claim in court that he was imposed an annuity method of repaying a loan, which is more beneficial for the bank. The annuity method provides that at first a smaller part of the principal debt is repaid than with equal repayment; consequently, the amount of interest charged on the principal debt increases. The difference is noticeable when comparing the amount of accrued interest from the table. 1 and 3: with uniform repayment of the loan, interest was accrued in the amount of 146.25 thousand rubles, and with annuity repayment of the loan interest was accrued in the amount of 150.24 thousand rubles.
Thirdly, one should not use interest calculation formulas for which the amount of accrued interest exceeds the fee for the period of actual use of the loan. Interest should not include payment for future periods (including periods after early repayment of a loan). Interest should be accrued only on the balance of the main debt (taking into account the reduction of this balance upon repayment of the loan). If this rule is not observed, the borrower's requirements for the recalculation of interest will be justified. In addition, such interest calculation formulas contradict the explanations from clause 5 of the Information letter of the Presidium of the Supreme Arbitration Court of the Russian Federation dated September 13, 2011 No. 147: the court satisfied the borrower's request to return to it part of the interest paid in accordance with the loan agreement, since they were paid for the period during which the use of funds has already ceased.
Fourth, if the borrower nevertheless filed a claim for the recalculation of interest, we recommend that the bank declare the following arguments in court:
To draw the court’s attention to the fact that the loan repayment schedule from the point of view of the borrower does not correspond to reality, since the borrower actually repays the main debt based on the initial loan term, and not from the period until the loan is repaid early. Monthly payments in repayment of the loan are paid by the borrower based on the full term of the loan, and not according to the shortened term of the loan until the time of early repayment. Otherwise, the monthly payment should be larger;
To draw the court's attention to the fact that the interest paid by the borrower before the early repayment of the loan includes only the fee for the period of actual use of the loan and does not include the fee for future periods (after the early repayment of the loan). The interest calculation formula assumes that the amount of interest for each month is equal to the percentage of the balance of the main debt in the previous line (at the end of the previous month);
To reinforce the above arguments with a counter-calculation of interest, taking into account the early repayment of the loan.
Counter-calculation by conditional example with annuity payments is presented in table. 5.
Month |
Repayable principal thousand rubles |
Repayable interest thousand rubles |
Monthly Payment Amount thousand rubles |
The balance of the main debt after the payment of a monthly payment, thousand rubles |
---|---|---|---|---|
Issuance of credit |
1500 |
|||
115,02 |
22,50 |
137,52 |
1384,98 |
|
116,75 |
20,77 |
137,52 |
1268,23 |
|
118,50 |
19,02 |
137,52 |
1149,74 |
|
120,27 |
17,25 |
137,52 |
1029,46 |
|
122,08 |
15,44 |
137,52 |
907,39 |
|
123,91 |
13,61 |
137,52 |
783,48 |
|
125,77 |
11,75 |
137,52 |
657,71 |
|
657,71 |
9,87 |
667,58 |
0,00 |
|
0,00 |
0,00 |
0,00 |
0,00 |
|
0,00 |
0,00 |
0,00 |
0,00 |
|
0,00 |
0,00 |
0,00 |
0,00 |
|
0,00 |
0,00 |
0,00 |
0,00 |
|
Total |
1500,00 |
130,21 |
1630,21 |
The interest on the counter-calculation (130.21 thousand rubles) is equal to the interest for 8 months according to the 12-month loan repayment schedule (Table 3).
Fifth, it is necessary to draw the court's attention to judicial practice, which fairly resolves such disputes not in favor of the borrower:
The determination of the judicial board on civil matters of the Armed Forces of the Russian Federation dated 01.03.2016 No. 51-KG15-14, although it satisfied the borrower's complaint, does not contain a final resolution of the dispute in its favor. The Supreme Court only sent the case for a new trial to the court of appeal. At a new review, the appellate court repeatedly refused to satisfy the borrower's requirements5 (despite the determination of the Supreme Court);
Appeal ruling of the Bryansk Regional Court of July 19, 2016 No. 33-3121 / 2016 6;
Appeal ruling of the Moscow City Court of 02.06.2016 in case No. 33-21476 / 2016 7;
Appeal ruling of the Moscow City Court of 05.24.2016 in case No. 33-19959 / 2016 8;
Appeal ruling of the Supreme Court of the Republic of Mordovia dated 01.03.2016 in case No. 33-600 / 2016 9;
Appeal ruling of the Nizhny Novgorod Regional Court of 02.25.2016 in the case No. 33-720 / 2016 10;
Appeal ruling of the St. Petersburg City Court dated 02.10.2016 No. 33-2682 / 2016 in the case No. 2-5487 / 2015 11.
Have you made an early repayment of a loan or a partial early repayment? Under the loan agreement, an annuity form for calculating monthly payments was probably provided. And now you are wondering if you have overpaid the bank for it. Is it possible to return part of the interest on a loan when it is repaid?
In this article you will find information on the grounds and an overview of the practice of repaying interest paid on a loan in case of early repayment.
An annuity payment is the most popular type of loan calculation when lending to legal entities and individuals. An annuity is an equal monthly deposit for the repayment of a loan debt, which includes both the amount of the principal debt and the amount of accrued interest for the loan.
The peculiarity of annuity payments is that at the beginning of the term the percentage of payments is very large, and the repayment of the main debt (loan body) is small. When lending for a long period, it turns out that if you look at payments for the first few months or even years, they almost do not reduce the amount of the principal debt. Almost everything that a borrower pays at this time is interest. That is why, if he wants to know how much of the loan he has paid off, he will be unpleasantly surprised that he paid off mainly interest, and the debt did not decrease.
Annuity formula and its features affecting the size of the payment
Annuity payment amount \u003d
SC * (PS * (1 + PS) ^ PP)
———————————————
((1 + PS) ^ PP - 1), where:
SK - loan amount (loan body),
PS - monthly interest rate,
PP - the number of interest periods remaining until the final repayment of the loan.
It should be said about one nuance in calculating the monthly interest rate applicable to the annuity. Our banks use the simplified approach prescribed by the Central Bank, getting the monthly rate from the annual simple division by 12. As a result, for example, all Russian mortgages pay a total of 4-5% higher payments for the entire period of the contract than they should have do.
There is a very popular opinion that as a result of the calculation of annuity payments the borrower pays interest in advance for the entire term of the contract. Thus, with early repayment, he has an obvious right to demand the return of unreasonably paid interest.
This approach is broadcast on many sites on the Internet and is even supported by judicial practice.
In reality, this is not so at all. Namely, if you look at the calculation of monthly annuity payments, and even more precisely - at the allocation of a percentage of the annuity payment, you can see that the interest is calculated every month exactly for the previous month period (28-31 days) and based on the actual amount of debt on the date of payment. That is, there is simply no payment of future interest in the annuity. This is all a fairy tale.
The reality is that: the borrower himself agrees to the increased payment of interest due to the extension of the contract, usually due to the fact that he is not able to pay b 0 a lower annuity payment per month (that is, to repay the main debt intensively) due to the banal absence of such income.
An example of calculating an overpayment of interest on an annuity:
Michael takes a consumer loan in the amount of 1 million rubles. Since his income does not allow him to pay a large amount on the loan, the loan is granted for 5 years with a payment convenient for Mikhail at 24.9 thousand rubles a month.
It so happens that Michael repays the loan ahead of schedule after 3 years, having paid about 500 thousand rubles - the amount of the remaining outstanding principal debt by this time.
Michael really overpaid the interest for these three years - instead of 397 thousand rubles, he could have paid only 283 thousand rubles of interest if he had originally taken a loan for exactly 3 years. But was Mikhail ready to pay all this time at 35.7 thousand rubles a month, instead of 24.9 thousand rubles? Unlikely. But the bank all this time did not receive this difference from Mikhail, which was used specifically for repaying the main debt, which means that he in turn paid funds for funding the same funds as individuals who brought money to the bank in deposit (although obviously at a lower rate )
An example in the Excel form just demonstrates two examples of calculating an annuity: 1. originally designed for a long term with early repayment; 2. Designed immediately for a short time. From the voiced example, as well as setting in yellow margins of the model own numbers, you can clearly see that the overpayment really takes place.
You can download the calculation model in MS Excel format by clicking on.
Despite the fact that the borrower's motivation when trying to return interest is very doubtful from the point of view of financial mathematics, why not use it. After all, banks are thus deceiving debtors, hoping, despite the fact that the erroneous position of the Central Bank of the Russian Federation is no longer valid. Then it is not a sin for the borrower to take the opportunity to reimburse the overpaid interest after early repayment of the loan. This right arises from the borrower upon early repayment, including refinancing of loans (re-lending).
How can I return the overpaid interest on a loan or mortgage
You can refer to the more recent practice of the Supreme Court of Russia. In accordance with the position of Definition No. 83-KG14-9 of December 23, 2014, in case of early repayment of the loan, according to which the borrower-consumer pays interest according to the added interest method, that is, calculated based on the entire term of the loan agreement, excessively paid interest must be returned to the borrower.
The court proceeds from the fact that within the meaning of paragraph 1 of Art. 809 of the Civil Code of the Russian Federation, interest is a fee for using the loan amount. Consequently, interest is payable only for the period from the date of issuance of the loan to the date of its full repayment, including early. The collection of interest for the period in which the use of the loan amount was not carried out is illegal.
The most recent examples of good practice include the example from the Decree of the Supreme Court of Russia No. 51-KG15-14 of March 1, 2016, which reached the judicial board on civil cases of the Russian Armed Forces on appeal. At present, it has been returned to a lower court in connection with a violation of the rights of the plaintiff and requirements for reviewing the decision in her favor.
Various information letters from higher courts are guiding instructions for the entire judicial system of Russia, and therefore, by submitting your claims to a bank statement, you can directly appeal to these documents. It will be very difficult for the bank to prove to the court on the spot that financial mathematics works differently.
Important:The practice of disputes with banks shows that lower courts are much more likely to take the side of the bank than the consumer. Complex disputes can be resolved in favor of the client only at higher authorities. The bank always filed an appeal and cassation.
Any appeals of banks to the texts of the agreements, namely, an indication of their direct prohibition on the return of interest, also do not work. Any agreement on the impossibility of recalculating payments already made in case of early repayment of loans as a basis for refusing to satisfy the claim violates the rights of the plaintiff as a consumer. Therefore, the provisions of the loan agreement with the bank in this part of the court will not be taken into account as contrary to the law.
Thus, in the presence of positive judicial practice of the highest instances of the courts of the Russian Federation, it is possible to consider the possibility of filing a lawsuit with the courts - it's worth it. For motivation, you can also read an interview with Roman Bevzenko, head of the legislation department of the Supreme Arbitration Court of the Russian Federation.
Debate on this issue is still ongoing. There is also quite a positive practice, for example, in a recent case in the Altai Territory. At the same time, in February 2017, the Supreme Court directly declined to answer the question of the presence of “overpaid interest” in a recent decision in Tyumen and returned the case for review to the appellate court.
Procedure for reimbursing excess interest paid
- Consult with a lawyer or see your own case law.
- To prepare a statement of claim by the example of samples of statements widely walking on the Internet. It should be remembered that now magistrates' courts consider claims with their amount up to 100 thousand rubles, everything else will go to the district court at the place of residence (if you do not apply to the court as an IP).
- Before sending a statement of claim to the court, you should (especially if such a requirement is in your agreement with the bank) apply to the bank with a claim, where you can offer to voluntarily return the excessively paid interest as unjust enrichment. In the application, it is necessary to set a response period for the bank (7-10 days). Also be sure to ask for a copy of your statements.
- To apply to court at the place of residence.
Important: To your claim or complaint to the bank, its administration with absolute predictability will refuse. The procedure for the recalculation of interest is not provided for by the internal regulations of banks; it is a 100% legal case.
How to calculate the amount of interest to be returned
Here you can approach the calculation by two methods.
You need to take the sum of all accrued interest as part of annuity payments (in the payment schedule they are usually highlighted in a separate column) for the entire period to maturity of interest and calculate the part that proportionally falls on the months prior to actual repayment. In order not to do the calculation manually, you can use , located on the site, just filling in your data in it so that they match the schedule in your contract.
The banks indicate the total amount of interest in the payment schedule, which is attached to the loan agreement. If the loan is long enough, then the amount of repayment may be significant.
With reference to the example of Michael’s loan already described above, this calculation will look as follows. For a loan of 1 million rubles for a period of 5 years at a rate of 17% per annum, the borrower must pay interest to the bank for a total of 491 thousand rubles. With early repayment, for example, after three years, the borrower actually paid 397 thousand rubles of interest. With a uniform repayment of interest, the borrower had to pay only 491 thousand rubles. / 60 * 36 \u003d 295 thousand rubles
Thus, the overpayment amounted to almost 102 thousand rubles.
Often, obtaining a loan is accompanied by lump-sum payments of various commissions having in practice various names: “financial coverage”, the “set your rate” program, and others. Read about their return, you can
More complicated method of calculating interest overpaymentpresented in the model posted on this page - through the difference between the two annuity flows.
According to this method, the borrower calculates his payments based on the initial conditions of the annuity with early repayment, and compares them with situations as if he had originally taken a loan for a shorter period, which means the amount of the annuity and the amount of interest paid would be different.
Let me remind you that in the calculation above, it turned out that taking a loan initially for 3 years, Mikhail could pay not 397 thousand rubles of interest, but only 283 thousand rubles. Thus, the overpayment amounted to 114 thousand rubles.
What method of calculating the overpayment of interest to choose for a statement of claim?
Since judicial practice, up to comments from lawyers of higher judicial instances, is more focused on the first method, it is proposed to use it. The difference can only be if the judicial practice in your region has developed in favor of the second method with the calculation of annuity for a new term.
Important: Before you run to prepare a lawsuit, it is recommended that you consult with a lawyer regarding the study of judicial practice in your area.
Repayment of overpaid interest on early repayment of a loan is an opportunity that many borrowers are not aware of. Banking institutions also do not mention this to their customers, so we will figure it out on our own.
Refund of interest on annuity payments
When applying for a loan, the method of repayment is indicated: differential or annuity. In the first case, it is proposed to pay in gradually decreasing parts, and in the second - equal. If annuity payments are registered with the client, interest repayment for early repayment of the loan should be requested. In the second case, overpayment does not occur, and therefore there is nothing to return.
Features of the calculation of payments
To understand the reason for the overpayment, it is worthwhile to figure out how the calculation occurs with the annuity method of paying the loan:
- The entire loan amount accrues interest rate.
- The amount of interest is added to the amount of the loan.
- The resulting value is divided by the number of months for the duration of which the contract is signed.
- Each month, the client pays the same amount.
A one-time payment consists of two components: the main debt and interest. In order to level payments for the entire period, in the first months the client pays a small part of the principal debt and a large part of the interest, which in fact by this time has not yet reached such amounts.
Therefore, if the borrower repays the loan ahead of schedule, he is obliged to get back the interest up to the end of the contract, because he paid them, although he will not use the loan at that time.
Allow early repayment of the loan and repayment of interest, if annuity payments, is obliged to any institution at the request of the client. Of course, they are silent about this, and sometimes they find excuses in order not to return the money. If your bank refuses this, you should take measures and contact the appropriate authorities. This may be a society for the protection of consumer rights, Rospotrebnadzor or a court. To win the case, you need to keep a copy of the contract, a receipt for the payment of debt, a certificate of termination of the relationship ahead of schedule and a copy of the application with the refusal to return interest. Large and reliable institutions always act within the law and fulfill the legitimate requirements of their clients. For example, both early repayment of a loan at Sberbank and interest repayment are carried out by customers without problems, as evidenced by their feedback.
Interest repayment rules for early repayment of a loan
Request a refund of interest paid upon early repayment of the loan, immediately after the payment.
Rules for early repayment of a loan
Recall the rules for performing this early procedure:
- Clarify the current amount of debt at the moment.
- Write a statement indicating the date and amount of future payment. Sometimes the bank requires you to specify the payment method and even indicate the card number.
- Make a payment on the declared day. It is important to pay an amount equal to debt up to kopecks. Otherwise, the account will not be closed and you will need to go through the procedure again.
- Visit the branch and request a certificate of completion of loan obligations.
Certificate of the end of loan obligations
The certificate contains information about the loan: amount, term, date of payment of the last payment. It is also noted that the client’s loan account is closed (his number and closing date) and a statement is issued stating that the lender has no complaints against the borrower. It is usually issued a few days after the application. Some institutions are ready to issue it on the same day.
It is worth worrying about such a certificate, even if a refund of interest upon early repayment of the loan will not be requested. She is a confirmation of the absence of debt. It is no secret that technical failures and other malfunctions are possible. If, for example, the account is not closed or the debt is not completely written off, interest will continue to be applied to it. Gradually, fines and penalties will automatically begin to accrue for lack of payments, as a result of which the balance of a few cents can reach very substantial amounts. To avoid any troubles, it is worth visiting the creditor and checking that all the debt has been paid off and the account is closed.
Interest refund procedure
You can apply for a repayment of interest upon early repayment of the loan immediately upon receipt of a certificate.
Interest Refund Application
You should request a form from an employee. If he refuses to provide the form, arguing for example, the absence of such a procedure in the institution, you should write it in free form and get an admission. If you refuse to accept the application, you can contact the management of the department, threatening to file a complaint with the supervisory authorities. They must accept it. But if this happens according to this scenario, you should immediately get a copy of your application, on which there should be a mark of the employee who received it and the date.
The statement itself must include the following information:
- Surname, personal and passport data of the borrower.
- Number and date of signing the loan agreement.
- The total amount of the loan, term, rate and other parameters (taken from the contract).
- Date and amount of prepayment.
- Information about closing a loan.
- The number of the account or card where the bank should send the amount of the overpayment.
A statement of the contract and a certificate of closure of the loan account must be attached to the application. After submitting the application, you need to clarify the date of listing. Usually, the procedure takes several days. The bank settles and returns the money.
Calculator
To check how relevant the amount received to return interest on early repayment of the loan, online calculator on specialized sites can be used. Such services, of course, do not give a 100% guarantee of the result, because they may not take into account some of the nuances of a particular bank. But you can find out the approximate amount with their help. To do this, just enter your indicators in the calculator:
- Total amount of debt;
- Rate;
- The term of interaction under the contract;
- Date and amount of prepayment.
Economic observer Konstantin Tsygankov explains to everyone who has big loans and who is going to repay them ahead of schedule that they have to go to court, despite the change in the law, the chance to return the money paid as interest for the time when the loan should have been according to the documents, but actually already paid off.
The fact that most of the population has loans is no secret. Every fifth adult citizen of the country has two or even more loans. These are various credit cards, just consumer loans for the purchase of household appliances, cash loans and, of course, a mortgage. Moreover, most of these loans are long-term loans: from 3-5 years, and, according to recent studies, Russians do not particularly favor early repayment (or do not have the capacity to do so).
But the most interesting thing is that people who took out a loan before 2011 and closed it ahead of schedule had the opportunity to return part of the interest paid! And this is not a tax deduction, but ... a court decision!
The whole point is a small “failure” of domestic legislation, namely, the last edition of the 809th article of the Civil Code. I will explain with an example how this worked: for example, a person takes a loan from a bank for 3 years with an annuity procedure for repaying a debt. (For those who are in the tank / bunker - an annuity payment when the debt is paid in equal installments during the entire period of using the loan. Interest is actually paid at the beginning of the term, while payments on the main debt for the first time comprise a minimum part of the amount payments).
Suppose, after 7 months, a citizen receives a bonus at work and, instead of drinking / skipping / buying a car on credit, repays an existing loan ahead of schedule. Now look, the interest rate, in fact, is our fee to the bank for using its service to provide money. We agreed to use the bank’s money for a certain percentage for 3 years. In fact, we used the service for only 7 months.
However, in case of annuity payment, in the first months we pay interest covering the entire period (i.e. 3 years), and it turns out that with early repayment of the loan, as in our case, the interest that we paid to the bank in advance, in fact, are unreasonable enrichment of the bank, because, after all, we did not use the loan for the entire term. It is with this motivation that a citizen goes to the bank with a demand to return to him the interest that he overpaid. Of course, the bank refuses the citizen, and there is only one thing left - to go to court.
The court satisfies the claim. It is on the grounds that, according to Article 809 of the Civil Code of the Russian Federation, interest is a fee for using a loan. It turns out that the bank needs to pay interest only for the period of using the loan - from receipt to repayment. With annuity payments, interest is accrued on the balance of the debt, however, with early repayment, the borrower has the right to demand a part of the interest back.