How is the early repayment of the loan for annuity payments carried out?
According to statistics, about 80 percent of Russian citizens have used the services of credit institutions at least once in their lives. At the same time, only a small part of clients really understands the early repayment of a loan for annuity payments. And he can make his choice consciously.
For many others, even standard terms are just empty words.
Loan products with annuity payments are most often sold on the market. This scheme assumes that every month the client pays equal amounts to pay off his debt.
The first half of the term of the agreement is spent on paying for interest in connection with the use of borrowed funds. And only by the second half of this period the main part, which is called the body, is repaid.
On the one hand, there are advantages to such a schedule. The risks of possible overpayments and their number are reduced. But differentiated payments are often more beneficial for customers. According to this option, it is the main debt that decreases. And interest is accrued already on the balance on it.
But when choosing an annuity option, the percentage of approval of applications increases. Therefore, many clients choose this particular solution. In addition, the amount of planned payments is small at first.
Another advantage is transparency. That is, everyone immediately understands what works and how.
What is early repayment for annuity payments?
There are two ways early repayment of the loan for annuity payments for those who want to pay off their debts ahead of time. Each of the options has its own characteristics. This issue deserves consideration already at the stage of signing the agreements.
For example, let's say the option with partial early repayment. It is assumed that the main body is shrinking. But there are also options when the amount remains unchanged, but the terms are reduced. You only need to pay off the last monthly payment, otherwise the account will not be closed.
Delays in contracts most often occur during the vacation period. Therefore, many try to pay in advance, several months in advance in such a situation.
But some organizations provide for automatic debiting of funds from accounts when certain conditions are reached. Then the schedule changes automatically. Then it is recommended to find out more information about the new solution so as not to create problems.
If this option is not provided, then you will have to write a corresponding statement in advance. Only after the funds have been debited, it is possible to receive a new schedule.
On the official websites of organizations there are special calculators that will help you calculate the early repayment scheme. And find out specific numbers for the program.
What are the benefits of early repayment?
Usually, banking professionals try to avoid talking about this opportunity. After all, the bank in case of using any option of early payments loses part of the profit. But is this solution beneficial for the customers themselves?
Of course, there are advantages:
- Reducing not only the main debt, but also the amount of funds deposited every month. There comes a feeling of satisfaction, because after making a decision, finances do not decrease so much.
- Using money to solve a problem that really matters.
But with annuity payments, early repayment of debts does not always have only advantages.
For example, instead of solving this issue, you can spend money on your own development. To get a better job later. And find a place with higher wages. And already use it for repayment. If a loan is issued in a large amount, then monthly payments will not change much, even after partial repayment of the debt.
What nuances should you consider in advance?
- Any bank gives information about such a possibility. But for the repayment itself, only the possible minimum is indicated.
- Sometimes, certain fines and sanctions are imposed for committing such actions.
It is recommended to study the conditions of the credit institution in advance so that its employees do not have any options. Information about early repayments must be indicated in the copy of the agreement that remains with the clients.
- For example, the usual deadline for making payments is July 15th. But the payment is made on the 10th. But recalculation is still done only for the next period. The amount of the monthly payment decreases after the 15th.
- Going to the bank and drawing up an application is a mandatory step in case of early repayment, the selected action schemes and amounts do not affect this provision. These banking standards cannot be violated.
Overpaid interest: calculation rules
They prefer to refuse commercial loans from the annuity. But with consumer lending, such a scheme has become widespread.
Commercial lending has other features as well.
Banks usually reserve the discretion to recalculate overpaid interest or not. This also applies to mortgage programs. Here again it is necessary to mention the need to carefully study the agreements before everything is signed.
If recalculation is unacceptable, then you can take the following actions:
- Write a claim with a request for the procedure.
- If the bank refused, the client has the right to file a claim in court.
A statement of claim can be filed a maximum of three years after the loan agreement has been concluded. The main thing is to provide as much evidence as possible in favor of your position.
Using this scheme, it is possible to reimburse not only the interest itself, but also the costs of compulsory registration of life and health insurance. You just need to provide supporting documentation.
The amount of interest to be reimbursed is easily determined independently.
Usually it is expressed in the form of the difference between the amount of interest accrued throughout the term of the agreement, as well as the amount of interest that is determined during the use of borrowed funds, in one case or another.
The scheme for early repayment of a loan in all banks is almost the same:
- The borrower draws up a statement expressing a clear intention for early repayment. This is usually required to be done at least 30 days before the date of the planned monthly deposit of funds.
- To receive an answer, they additionally call the managers. Sometimes you need to wait up to 5 days, although in most cases the decision is given immediately.
- The institution's specialists call the deadlines before the end of which payment is required. This is usually the standard time for monthly transfers. There is no need to try to devote this day to visiting bank branches. Let's say the option when funds are deposited into the account in advance. But the recalculation of the schedule, in any case, is carried out only as scheduled. Time frames and restrictions are almost never used if the debt is planned to be covered in full.
- If the repayment is partial, then after a while you need to contact the office to receive a modified payment schedule.
- With a complete repayment scheme, it is important to obtain written confirmation that the debt has ceased to exist. And the fact that the loan agreement itself is closed.
Most often, for this purpose, banks issue a letter drawn up using letterhead. The head of the department puts his signature on this document.
Receiving a notification is mandatory at least to be sure that you are right. The client will know that the bank does not have any claims against him. When applying for loans in other organizations, such letters may also be required, as confirmation of the positive history of the borrower.
Some banking organizations can arrange debt recalculation at any convenient time. Therefore, the client himself chooses the time when he pays off his debts.
Credit institutions in general often strive to simplify the process of early repayment to the maximum. For example, you can deposit amounts to your account yourself, without prior notification. The use of Internet banking services is allowed. But then it is recommended to still receive a letter confirming that there are no complaints against the client.
Once again about the benefits and features of early repayment programs
Early repayment will not always be beneficial for the borrower himself, no matter how strange it may sound. Especially when it is planned to deposit small amounts, and the contract contains an additional clause describing fines or a commission for such actions.
Banks have long abandoned this scheme. It can only be seen in contracts signed before 2010. But other credit organizations are still using this solution.
If the agreement was concluded at the bank, then there is always the opportunity to deposit funds. Clients choose the time that is most convenient for them. Then the total amount of the overpayment is reduced. As well as the general burden on the family budget.
If there are additional fines, a more profitable option is the same early repayment, but in installments. Under such circumstances, it becomes possible to reduce the planned payments transferred every month. But it is much more profitable when full early repayment is available to clients at any time.
Often in the contracts there is a condition prohibiting the repayment of the debt for the first 2-3 months, as well as the last. Therefore, it is convenient to deposit funds by the middle of the term of the current contract.
In the following video, you will learn everything about early repayment:
Aug 24, 2017 Help manual
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