Any borrower can repay the loan immediately after registration and at any time before the deadline specified in the agreement. By law, banks are required to provide this service free of charge. But it is not always advisable to use it. In this article, we will tell you why early repayment of a loan is dangerous, what it affects, and how to properly register it.
Is it possible to take out a loan and pay it off immediately?
Until 2011, banks could impose restrictions on early repayment of debt, as well as remove a commission for this procedure. In 2011, a law was passed according to which the borrower can repay the loan at any time, including immediately after registration. But some restrictions still remain.
The first restriction is mandatory notification of the bank about find your mobile number database early termination of the agreement. This application can be submitted during a visit to the bank office or remotely - for example, via a mobile application.
The second limitation is the notice periods that can be specified in the loan agreement. If there is no separate clause on the terms in the agreement, it is necessary to notify the creditor 30 calendar days before the entire debt is written off.
There is a so-called cooling-off period - 14 days, during which the client can change his mind and close the contract. In this case, there is no need to notify the bank in advance and wait 30 days. But it is necessary to take into account that interest is accrued daily, and the creditor will have to return a little more than was taken.
Does early repayment affect your credit history?
The credit history includes all records of loans, court debts and some other facts of financial behavior. All applications for loans, payments made and overdue payments are sent to the credit history bureau (BKI) and stored there for 7 years. Any potential lender will be able to see them when considering your application.