Quite often it happens that, having obtained a loan for a decent amount, the client after some time with surprise finds out that he has been reinsured and is ready to pay off the debt much earlier than the due date. Then again you have to go to a financial institution (say, to Sberbank). Oddly enough, a loan repayment 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 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 rest of the debt in full.
One of the few banking institutions that does not put forward any additional requirements for its borrowers is the Savings Bank of Russia. We’ll 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 simultaneously deposit 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 obligatory payment), part of the debt remains outstanding, and the loan agreement continues.
Honestly, 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 a loan, or rather your actions in this case, will depend on how exactly you repay your loan. If your schedule is annuity, that is, you pay the same amount to your account every month, then for premature repayment of the debt you need:
- to transfer a sufficient amount to the current account in advance;
- on the day when the next tranche is being written off, obtain a special permission from the bank employee for early repayment of the loan;
- after depositing funds, ask the bank employee to develop a new payment schedule based on the outstanding balance;
- if you have paid the full 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 according to the same scheme:
- We make a sufficient amount of money in the interim account;
- we apply to the bank employee for permission to repay the loan ahead of schedule (or part of it);
- sign a special permit document;
- please recalculate the remaining debt and create a new repayment schedule.
Attention! Despite the fact that Sberbank pays interest, fines and penalties for early repayment of a loan, however, you still need to adhere to some conditions:
- early repayment of a loan can be started no earlier than 3 months after its execution;
- You can make additional amounts for early repayment of the debt at any time, but you must make the next obligatory payment exactly in accordance with the schedule.
Early repayment of a mortgage
Now we will consider such a question as early repayment of a mortgage loan. Sberbank on this occasion also does not set any restrictions, you can make any amount and even repay the loan in full.
Of course, it’s unlikely that you can immediately pay off all the debt, but smaller amounts can be paid fairly regularly. There are two ways to recalculate your mortgage balance:
- Reduce the size of the monthly payment due to previously made additional amounts. 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 loan term remains the same.
- Leave mandatory monthly payments at the same level, but due to the resulting overpayment, reduce the loan term itself. This way is more popular, as it is believed that in this way it is possible to significantly reduce the overall overpayment of the loan.
In any case, before paying off debt obligations prematurely, you should carefully study the contract. It is possible that all the methods and conditions for early repayment are already prescribed in it.
What do we have to do?
So, step by step instructions:
- We submit an application for early repayment of a loan to Sberbank.
- We fill out other documents, if necessary (the manager will tell you about this).
- We ask the bank employee to recount the outstanding balance or do it yourself using the calculator on the bank's website.
- We deposit money into your credit 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 time of obligatory payment. Otherwise, nothing will turn out, the payment will go as usual, and the premature repayment will have to be postponed to the next month.
Return insurance
If you return the money before the due date, you can save not only on interest. You can also count on the return of insurance upon early repayment of the loan (though not everyone knows about it).
First of all, you need to contact the insurance company (not the bank) and submit the following documents:
- passport;
- photocopy of the loan agreement;
- a certificate from the bank stating that the loan was fully repaid.
You will also have to write a statement addressed to the head of the Insurance Company, where you indicate that you are applying for a refund of insurance upon early repayment of the loan.
Before deciding whether to return insurance, carefully read the contract. As you know, nobody likes to part with money, especially insurance companies, so there can be 3 options for the development of the situation:
- Refunds will be refused. This happens with a fairly large number of customers. The fact is that in many contracts somewhere finely and “in the margins” the conditions under which the UK insures itself against a refund are spelled out. Only at the time of obtaining a loan, few people pay attention to these small letters. You will most likely be able to return your money, only for this you will have to enlist the help of an experienced lawyer.
- SK will refund your money in part. Such a development is likely 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, submit a request for a written estimate of the costs incurred. This will allow you to get the maximum compensation, however, act, as you already understood, will also have to be through the court.
- Full refund. Usually, SK returns all the money without question when the loan has been repaid within 1-3 months from the date of registration. In this case, most likely, it won’t reach the court, because the IC is unlikely to have any arguments.
Some nuances
With early repayment of the loan, it is worth considering several more important points:
- Before contacting the bank, try to make all payments yourself, a loan repayment calculator will help you (on the Sberbank website). By filling in the appropriate fields and clicking on the “Calculate” button, you can see how much remains to be paid, a new (approximate) payment schedule, and other useful information.
- Most often, paying the entire loan in the first month after registration does not work, sometimes this can not be done in the first 3 or even 6 months. Therefore, before applying for a loan, carefully read the contract, especially the part that says about early repayment.
- Use early repayment whenever possible, because it allows you to significantly save your money.