2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
It often happens that, having taken out a loan for a decent amount, a client after some time is surprised to find that he has reinsured himself and is ready to repay the debt much earlier than the due date. Then again you have to go to a financial institution (say, to Sberbank). Early repayment of the loan, oddly enough, is not welcomed by any credit institution. And this is not surprising, because the sooner you repay the loan, the less profit the bank will receive.
Nevertheless, almost all banks allow their customers to return the money when they are ready to do it, however, sometimes for this you need to fulfill some additional conditions, for example, pay a fine or pay off the balance of the debt in full.
One of the few banking institutions that does not put forward any additional requirements for its borrowers isSavings Bank of Russia. Let's talk about him.
What is early repayment
So, let's go to Sberbank. Early repayment of the loan here can be done without additional conditions. You need to know that this service is full and partial.
The first is a situation where you immediately pay the entire amount of the debt, along with interest, and terminate the loan agreement.
In the second case, the loan is repaid only partially. After making the desired amount (exceeding the mandatory payment), part of the debt remains outstanding, and the loan agreement continues.
To be honest, no matter what type of early repayment you use, it is still unprofitable for the bank and, of course, good for you. Five years ago, almost all financial institutions fined their clients for such actions, but in 2011 this practice was declared illegal (Articles 809, 810 of the Civil Code of the Russian Federation).
Annuity payment method
If you contact Sberbank, early repayment of the loan, or rather your actions in this case, will depend on how exactly you repay your loan. If you have an annuity schedule, that is, you deposit the same amount into your account every month, then to prematurely pay off the debt you need:
- transfer a sufficient amount to the current account in advance;
- on the day when the next tranche is written off, get a specialpermission for early repayment of the loan;
- after depositing the funds, ask the bank worker to develop a new payment schedule based on the outstanding balance;
- if you paid the entire amount, make sure that the loan is closed and ask a Sberbank employee to issue you a certificate confirming this fact.
If the loan has a differentiated schedule
If your payments are uneven, you will also have to visit a credit institution (in our case, Sberbank). Early repayment of the loan in this case occurs approximately in the same way:
- depositing a sufficient amount of funds to the escrow account;
- appeal to a bank employee for permission to early repay the loan (or part of it);
- sign a special permit document;
- please recalculate the balance of the debt and form a new repayment schedule.
Attention! Despite the fact that Sberbank does not charge interest, pen alties and fines for early repayment of a loan, you still need to adhere to certain conditions:
- you can start early repayment on the loan no earlier than 3 months after its registration;
- You can make additional amounts for early repayment of the debt at any time, but you must make the next mandatory payment exactly in accordance with the schedule.
Pay off mortgage early
Now let's look at the issue of early repayment of a mortgage loan. Sberbankit also does not impose any restrictions on this matter, you can deposit any amount and even repay the loan in full.
Of course, it is unlikely that it will be possible to immediately pay off the entire debt, but smaller amounts can be paid quite regularly. There are two ways to recalculate your mortgage balance:
- Reduce the amount of the monthly payment due to the additional amounts previously paid. This method is most often used when the client is not sure that the level of his income will not change in the future and he will be able to afford to pay significant amounts for a long time. The total term of the loan remains the same.
- Leave mandatory monthly payments at the same level, but reduce the loan term itself due to the resulting overpayment. This path is more popular, as it is believed that in this way it is possible to significantly reduce the overall overpayment on the loan.
In any case, before prematurely paying off debt obligations, you should carefully study the contract. Perhaps, all the methods and conditions of early repayment are already prescribed in it.
What should I do?
So, step by step instructions:
- Submit an application to Sberbank for early repayment of the loan.
- Fill out other documents if necessary (the manager will tell you about this).
- We ask a bank employee to recalculate the unpaid balance or we do it ourselves using the calculator on the bank's website.
- Deposit money on yourcredit account.
One important point: if you are planning to make an early repayment (full or partial), come to the bank no later than 7 days before the date of the mandatory payment. Otherwise, nothing will work, the payment will go through as usual, and the early repayment will have to be postponed to the next month.
Insurance refund
If you pay back early, you can save more than just interest. You can also count on the return of insurance in case of early repayment of the loan (although not everyone knows about this).
First of all, you need to contact the insurance company (not the bank) and submit the following documents:
- civil passport;
- photocopy of loan agreement;
- certificate from the bank that the loan is fully repaid.
You will also have to write an application addressed to the head of the IC, where you indicate that you are applying for a refund of insurance upon early repayment of the loan.
Before making a decision on the return of insurance, carefully read the contract. As you understand, no one likes to part with money, especially insurance companies, so there can be 3 scenarios for the development of the situation:
- You will be denied a refund. This happens with quite a large number of clients. The fact is that in many contracts somewhere small and “on the margins” the conditions are prescribed under which the UK protects itself from the return of funds. Only at the time of applying for a loan, few people pay attention to these small letters. Get your money backmost likely you can, only for this you will have to enlist the help of an experienced lawyer.
- SK will refund your money in part. Such a development of events is likely in the case when more than six months have passed since the insurance was issued. Employees of the UK usually insist that part of the money went to administrative expenses. If the amount you want to receive is large enough, apply for a written estimate of the expenses incurred. This will allow you to receive the maximum compensation, however, as you already understood, you will also have to act through the court.
- Full refund. Usually, the UK returns all the money without question when the loan was repaid within 1-3 months from the date of registration. In this case, the court, most likely, will not come, because the UK is unlikely to have any arguments.
Some nuances
When repaying a loan early, it is worth considering a few more important points:
- Before contacting the bank, try to make all the calculations yourself, the loan repayment calculator (on the Sberbank website) will help you with this. By filling in the appropriate fields and clicking on the "Calculate" button, you can see how much you still have to pay, the new (approximate) payment schedule and other useful information.
- Most often, it will not be possible to pay off the entire loan in the first month after registration, sometimes this cannot be done in the first 3 or even 6 months. Therefore, before applying for a loan, carefully read the contract, especiallythe part where it is written about early repayment.
- Use early repayment whenever possible as it saves you a lot of money.
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