Early repayment of annuity loan: application for early repayment of the loan
As of 2019, absolutely all borrowers who have taken out a loan at a bank have access to early repayment of an annuity loan without charging any fines and commissions. There is also no moratorium on this procedure - that is, you can make a premature repayment even the next day after taking a loan.
What is an annuity loan / payment
In accordance with Part 15 of Art. 7 Federal Law No. 353 of December 21, 2013 “On consumer ...” (hereinafter - Federal Law No. 353), immediately after the conclusion of the loan agreement, the bank is obliged to provide the borrower with a so-called payment schedule.
It will contain the following information:
- the date of each monthly payment;
- its amount;
- information about what part of the payment amount will be used to pay off the principal debt, and what part - interest;
- data on the total amount of principal and interest for the entire crediting period.
In accordance with paragraph 6 of part 9 of Art. 5 ФЗ № 353, the individual terms of the contract also indicate the number, size and frequency of payments, as well as the procedure for determining their size. The type of repayment scheme used - annuity or differentiated payments is also prescribed there.
An annuity means such a scheme for repayment of a consumer loan, in which the borrower is obliged to pay the same amount every month during the entire term of the agreement.
On the contrary, the payment scheme in the form of differentiated payments provides for a payment in a different amount every month (at first the payment is the largest, then it gradually decreases).
With an annuity scheme, the largest share of the first payments is interest (since they are charged on the balance of the debt, and at first it is the largest). Gradually, the share of interest decreases, and the main structure of the monthly payment begins to be made up of the principal debt. You can verify this yourself by looking at your payment schedule with the bank.
Is it possible to make a full or partial early refund
As you know, the loan can be repaid ahead of schedule. At the same time, creditors do not have the right to restrict this right of the borrower in any way (the presence of a corresponding condition in the agreement or in other documents regulating the legal relationship of the parties is null and void).
In this case, early cancellation can be carried out:
- partially - that is, the borrower contributes to his credit account in any month an amount greater than the amount of the monthly payment (for example, the payment every month is 20,000 rubles, the borrower makes not 20, but 25 thousand, respectively, 20 thousand go towards the planned payment , and the remaining 5 thousand - on account of early cancellation);
- fully - that is, the client deposits to the account from which the repayment is made, an amount equal to the balance of the debt + actually accrued interest on the day of such a return.
Notification of the creditor and the possibility of early repayment only on a specific date
In Art. 11 Federal Law No. 353 presents legislative requirements on some restrictions in the implementation of the procedure under consideration.
So, in part 4 of Art. 11 Federal Law No. 353 says that if the borrower intends to make a partial or full premature repayment, it is imperative to notify the bank. This must be done at least 30 days before the desired debiting date.
For instance, the borrower wishes to repay on April 14th. This means that on March 14 or earlier, you need to send a written notification of your intentions to the bank.
However, this requirement does not apply to cases where a shorter notice period is established by the agreement of the parties. For example, it is said that the borrower is required to notify the bank 5 days before the maturity date.
By the way, we have indicated above about the possibility of the borrower to make early repayment on the day he wants. This requirement can be limited (but only in relation to partial cancellation, full can always be made on any day, subject to prior notification of the creditor - ed.).
So, in accordance with Part 5 of Art. 11 ФЗ № 353, the agreement of the parties may contain a condition on the possibility of partial cancellation only on the next date of the monthly payment, but not more than 30 days from the date of notification of the creditor.
For instance, according to the schedule, the date of the monthly payment is set on the 15th day of each month. The client submits an application on the 13th. Accordingly, funds will be debited towards partial cancellation in the same month (after 2 days, on the 15th). The requirement of “not more than 30 days from the date of notification of the creditor” in this case will be complied with.
Accordingly, by submitting an application on the 16th, early cancellation will be possible only on the 15th day of the next month (30 days have not yet passed by that time).
When you can not notify at all
Part 2 and part 3 of Art. 11 of the Federal Law No. 353 says about certain cases in which the borrower has the right not to notify the lender at all about his intentions to carry out premature repayment.
These regulations apply only to full early repayment.
So, you do not need to notify the bank if you plan to make a full repayment:
- in the first 14 days after the issuance of an inappropriate loan;
- in the first 30 days after the issuance of a loan, the spending of funds on which can be carried out only for certain purposes specified in the agreement of the parties.
How to make an early repayment - full or partial
It is better to familiarize yourself with the procedure for this procedure in more detail, since the specific conditions for its implementation may differ depending on the bank.
- loan agreement;
- general conditions for the provision and repayment of consumer loans (available on the bank's website and at the information stand in the branch).
But basically the process is carried out in the same way:
- the borrower draws up application for early repayment of a loan in the form established by the bank (registration is possible both in writing and in electronic form in the personal account on the lender's website, and in some organizations the application can also be submitted through the call center);
- then submits an application in one of the ways specified in the agreement of the parties (in person, through a proxy, by mail, etc.) - without fail, observing the terms of notification;
- deposits to the credit account from which monthly payments are debited, the corresponding amount (in case of full repayment, it is best to clarify it at the bank branch or by phone);
- on the date of the next monthly payment (in case of partial cancellation) or on the date specified by the borrower in the application, the bank writes off the funds on behalf of the client.
- if partial, then the payment schedule is recalculated accordingly (in the direction of reducing the loan term or monthly payment - at the client's choice, but in some banks this choice may be limited);
- if it is complete, then the loan agreement is closed, and the borrower can receive a certificate of the proper performance of obligations for submission to various institutions.
How to independently calculate a payment schedule after partial repayment
Annuity payments early loan repayment:
- can be recalculated downward;
- or stay the same, but the loan term will decrease.
The bank will calculate everything itself - the borrower only needs to be told what he wants - to reduce payments or the term. However, in order to verify the correctness of the calculation by the lender, it is better to check everything yourself.
For these purposes, our calculator in Excel format is suitable, in which all the necessary formulas have already been "hammered".
The procedure for using it is as follows:
- opening a file;
- granting permission to edit (if Microsoft Office requires it);
- entering in the fields “Loan amount”, “Rate,% per annum”, “Loan term, months” and “Date of loan issue” of the corresponding initial parameters;
- familiarization with the results.
For example, suppose we took a consumer loan from a bank in the amount of 800,000 rubles at an interest rate of 17% per annum for a period of 5 years (60 months). The loan was issued on August 9, 2018. Enter the specified parameters in the appropriate fields, as shown in the picture.
We are interested in a group of columns under the general name "Annuity payment":
- in the “Amount” column, we see a monthly breakdown of the amounts of each annuity payment - in our example, it is 19,883 rubles;
- the column “To repay the debt” displays the amount that goes every month from these 19,883 rubles to pay off the main debt to the bank (in our case, the main debt is 800,000 rubles);
- in the column “To pay off interest” you can view the amount of interest accrued every month on the balance of the debt (that is, the amount that is indicated in the column “Remaining debt after payment” in the previous month).
Next, you need to calculate how the payment or term will change when making a partial refund. To do this, enter the desired amount in the corresponding column “Decrease in payment” or “Decrease in term” (not less than the annuity payment, that is, you need to specify more than 19883 rubles).