Early repayment of financing: how much do you pay?

The early repayment of financing is a transaction that can be carried out in relation to the credit lines subscribed to be able to realize personal, family and professional expenses. However, before approaching this kind of initiative, it is opportune to try to know which are the clauses and the rules that underlie this possibility referred to the debtor and, in particular, what are the economic conditions that regulate an eventuality of this nature .

When is it possible to proceed with early repayment of the loan ? And how much do you pay?

When is it possible to proceed with early repayment of the loan ? And how much do you pay?

First, let us remember how anyone who has turned on a loan has the possibility of being able to return the sum obtained even before the natural expiry of the loan. The early repayment of financing is therefore an alternative method of reimbursement than the ordinary one , which provides for the termination of the relationship through the observance of an amortization plan that provides for the gradual return of the capital and the interests, according to the methods that are established in the internal contract signed with the financing institution.

However, the possibility of early repayment of financing is not an extraordinary right granted to the debtor, indeed . In all loan agreements, in fact, the possibility of the debtor being able to pay off all or part of his debt prematurely, at conditions and characteristics that will be governed by the same contract, is well explained.

Cost of such early repayment

Cost of such early repayment

In this context, it is of interest to find out what the cost of such early repayment is. With regard to mortgages, the charge was canceled by the so-called Bersani decree, which canceled the penalties for mortgages for the purchase or renovation of the first home. For other cases, including personal loans, the penalty continues to exist, although limited – in most cases – to 1% of the capital yet to be repaid. Given that there could be significant differences depending on the lender, our advice is to carefully consult the signed loan agreement.

With regards to the way in which it is possible to proceed with early repayment, we recall that this is generally linked to a prior request to be made against one’s own bank, in which the date on which it is deemed to be possible to proceed with the termination of the report: a preventive step that will allow the bank to calculate with certainty the total to be paid for the extinction of the credit relationship, and that also applies in the case of partial extinction (with the amortization plan that will continue in installments of a reduced amount, proportionally to what extinct).

Remaining amount

Remaining amount

The payment of the remaining amount can be made by bank transfer or, alternatively, a bank draft. In this second hypothesis, however, it will be necessary (especially in the case of the bank check, while for the circular the benefits could be made) to wait for the time necessary for the bank to verify the solvency of the credit title negotiated.

However, it is given that each lender has different rules to that effect, if you intend to proceed to ‘early repayment loan is a good idea to discuss it ahead of time with your consultant and reference, below, follow the signs agreed.

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