Is it worth repaying the loan early? Is it possible to repay the loan ahead of schedule? If you pay your loan early

Modern life is a cycle of circumstances that can greatly disrupt well-thought-out and built plans. Over the past few decades, modern people have become accustomed to solving the problem of any financial issues in banking institutions. Opportunities have opened up for citizens to borrow money to buy real estate, a car, household appliances, furniture and other goods that are necessary for a normal existence.

Lending is also provided for the purchase of building materials, solving business problems, treatment, recreation, study and other needs. Every citizen who has a good credit history and a steady income can take a loan from a bank. Getting any type of loan is quite easy due to the fact that a large number of loan programs have been thought out in the banking sector, which, like a lifesaver, help solve flow problems. Bank customers often do not even think about the fact that situations may arise in which the repayment of debt will become a problem.

What can affect the ability to make mandatory payments

There are many reasons for the difficulties. They may be:

• job loss;
• disease;
• a jump in the exchange rate;
• the death of a family member;
• one of the earning family members will become unemployed;
• negligence;
• the emergence of other life problems that entailed financial losses.

Possible problems with loan defaults

Non-payment under the concluded loan agreement entails a sequence of additional problems. It all starts with calls from bank employees, then letters of claim from the management of a banking institution, a lawsuit, employees of the executive service appear at the address of the debtor's residence. And, even worse, there are threats from special services. Intimidation of unscrupulous borrowers is becoming one of the popular ways to demand borrowed funds. In addition, credit bondage also provides for penalties for non-payment of debt and bank fines, which increase the total amount of debt several times. One way out of this situation, according to experts, is to borrow funds to repay the amount taken. To find the answer to the question "how to repay a loan with a loan", you need to have some important information. There is a term in banking legislation that denotes the full repayment of borrowed funds on the basis of a new bank loan. If you understand the essence, then in the process of refinancing or on-lending, you need to take a loan in order to pay off another loan.

The main advantages of on-lending

What you need to pay attention to before concluding a refinancing agreement

Before that, you need to carefully study the primary loan agreement. Banking policy provides for special programs that contribute to the repayment of debt through an additional loan. Often the possibility of refinancing is spelled out in the contract itself. It occurs after a certain amount of time has passed. In each bank, the period that must pass before concluding a refinancing agreement is different. On average, its duration is six months, but other options are possible: three months or a year. The management of a banking institution is itself interested in ensuring that the repayment of the borrowed amount is fulfilled, therefore, the conditions of the loan program provide an opportunity for bank debtors to cope with the established debt payments by reducing interest on the main body of the loan, increasing the loan term and other loyal programs.

You need to read the contract carefully before paying off the loan quickly.

Refinancing is not suitable for all loan agreements. Rather, for some of them, this method of debt repayment does not matter.

There are some programs of banking institutions that do not allow early repayment of the loan body. Therefore, it is necessary to clarify this possibility before signing documents. Bank employees claim that there are loan programs that do not provide for changes in the schedule of payments on debt. In such cases, the refinancing agreement does not make sense. Moreover, there are banks that provide a fee for early repayment of the loan, so these details need to be clarified. In 2011, the law prohibited the use of this method of calculating interest, but they are still found as one of the types of hidden fees.

Is it possible and what are the advantages of early repayment?

Paying off debt early has many benefits. First of all, they relate to the psychological state of the debtor. When the borrowed amount is fully given away, the person feels much more comfortable and freer. If we analyze the payments, then the early repayment of the loan automatically reduces the amount of the principal debt of the borrower funds by reducing the amount of accrued interest. An important advantage of debt repayment is that the saved money can be invested in a profitable business, and not paid to the bank. Early loan repayment in most cases is beneficial for customers, but not for banking institutions. They lose unpaid interest on loans if they are paid early. Until 2011, many banks generally provided for various commissions and large fines for prepaid debt. Now the legislation has improved the conditions for lending money to borrowers, but a moratorium for a period of six months, a year or at least three months on early repayment still exists. You can specify the duration of the ban in each bank in the loan agreement even before

Refinancing of consumer loans

Consumer loans are taken for a period much shorter than larger debts, but at the same time they are not very beneficial for the family budget. You may have seen an interest rate on loans that is much lower than your bank, which could be an incentive to refinance. It often decreases over time. This can be considered some risk of the borrower who borrowed the amount on less favorable terms. For example, your loan was issued by Privatbank. How to repay the loan in advance at this financial institution must be deducted in the loan agreement. If it has the possibility of refinancing on more favorable terms, then to reduce the interest rate, it is enough to issue a simple standard package of documents. If you decide to take a new loan from another bank, you will need to collect additional documents.

Refinancing of car loans

Before buying a car, you need to collect an additional package of documents that relate to the car and the current loan. This package of documents depends on the purpose of concluding a refinancing agreement. If you are applying for a loan to buy another car, then the contract execution procedure requires the sale of the first car in the showroom. The proceeds will be the initial contribution under the refinancing agreement. But in any case, it is necessary to conclude a new insurance, in which another bank will be indicated as the beneficiary.

Get a bank loan to pay off your mortgage

This type of on-lending is considered the most difficult to process, it requires additional documents relating to the property for which the loan was taken, payments made, the balance of the loan body and other details. At the same time, it is necessary to conclude a new insurance contract indicating a new bank, make an assessment of real estate at the moment and re-register real estate. The renewal of a new mortgage agreement will entail additional significant costs, they will be justified under more favorable lending conditions only if the amount of the unpaid mortgage body is large.

Additional package of documents and conditions for refinancing in other banks

Before repaying a loan with a loan by borrowing money from another bank, it is necessary to collect additional documents for its execution. In addition to the standard package, in order to complete the transaction, it will be necessary to collect certificates that characterize the state of the current loan.

1. Before early repayment of a loan for the purchase of real estate or a car by borrowing funds, you must present a previously signed loan agreement.
2. You also need to prepare a debt repayment schedule indicating the amount of monthly mandatory payments.
3. If additional agreements have been concluded for the current loan (a contract of assignment, pledge), then the originals of these agreements must be presented when applying for a new loan.
4. In the bank to which you owe money, take a certificate of the balance of the debt.
5. If refinancing will be concluded for a large amount (it is indicated in each bank), then it will be necessary to additionally draw up a guarantee agreement for at least one individual.

Early repayment of a loan is always considered as an opportunity, firstly, to quickly relieve oneself of financial obligations, and secondly, to save on interest. Based on this, is it profitable to pay off the loan ahead of schedule - a question that should not be in doubt. Regardless of which payment system is used - annuity or differentiated payments - early repayment will still generate some savings. On the other hand, profitability is a relative concept. Too many external factors and circumstances influence its definition in a particular situation. To say for sure, you need a deep analysis and mathematical calculation, and often an understanding of market trends, the ability to look to the future and master at least the basics of financial planning. Of course, most borrowers are not ready for such analytics, so they usually think in worldly, rather than economic categories.

When is it best to pay off a loan early?

​If we consider the profitability of early repayment of a loan as an exclusively opportunity to overpay less than with strict adherence to the payment schedule, then, of course, this goal will be achieved. Moreover, if you have the financial ability to do this without compromising the quality of your life, without limiting yourself in anything, then, of course, you should immediately plan early repayment, and even, possibly, seriously increase the amount of periodic payments, having once paid the entire balance of the debt straightaway. Under such conditions, this approach can even be called the most reasonable and economically justified.

However, rarely does anyone take a loan for the sake of a loan. Usually its registration is associated with a serious financial need, which means that the calculation for quick repayment is considered only theoretically. In such situations, you will have to weigh all the advantages and disadvantages of early repayment and make financial calculations to see the benefits.

One of the important conditions for profitability is the payment scheme- annuity or differentiated.

With an annuity system each periodic payment is equal to the other, but differs in structure. The first payment includes the minimum amount directed towards the principal debt and the maximum amount towards the interest. As the debt is repaid, the borrower will reduce the amount attributable to interest in the structure of each subsequent payment and increase the amount attributable to repayment of the principal debt. With such a scheme, the implementation of early settlements on the loan will actually mean the exclusion from the payment schedule of the last amounts by dates and the interest accrued on them. Thus, the later you start to pay off the loan ahead of schedule, the less profitable it will become in terms of the amount of the overpayment.

In the case of using a differentiated payment system, which, however, is rarely practiced today, the benefits of early repayment of the loan are more tangible and obvious. The interest in each subsequent periodic payment decreases according to the decrease in the amount of the principal debt. With this scheme, it is easier to see and control the benefits. However, the need at the first stage of lending according to the schedule to deposit serious amounts and reduce the monthly financial burden with each new payment - at first does not allow you to increase the regular payment, and then relaxes a little and makes you not consider early repayment as an urgent solution.

With any of the payment schemes, you should definitely pay attention to what exactly the bank will direct the funds coming from you. If the bank does not repay the loan ahead of schedule, then, most likely, the amount that you transferred on account of the principal debt went to pay off interest. This is usually characteristic of an annuity payment system, and also sometimes accompanies the transfer of money to a loan account without specifying the purpose of the payment. To prevent this, it is necessary in the application, which is necessarily drawn up in order to obtain the right to early repayment of the loan, to indicate what exactly you are sending the funds for - that is, to pay the principal debt (loan body).

In general, we can say the following:

1. Paying off a loan early is beneficial if you can afford it without compromising your quality of life.
2. The longer the period of actual use of the loan, the lower the profitability of early repayment. Hence an important rule - if you can choose to reduce either the loan term or the size of the periodic payment during early repayment, it is better to choose a payment to reduce the overpayment.
3. Before you decide on early repayment, study the disadvantages of this approach and their impact on the development of the situation.

Unfavorable early repayment

The disadvantages of early repayment, which, in fact, determine the unprofitability of such an approach, manifest themselves individually. In general terms, they can be defined as follows:

1. The money that you send for early repayment could be used for other needs, perhaps more important. As a result, you still have to sacrifice some current needs. Of course, the income and standard of living of borrowers vary. However, it is always worth considering what is more important for you today - to increase the payment on the loan, pay it off in full, or direct this money to something more useful for yourself and your family.
2. Lost benefits. Even if you have extra money, you can put it on a deposit and receive interest, or buy something and get additional income from it. Estimate what and how much you will lose, you will not receive as a result of making a generally optional payment to the bank. Sometimes lost profits "eat up" all the benefits of early repayment of the loan or make them completely insignificant.
3. Prepayment on the loan does not allow you to take advantage of inflation. In recent years, inflation in Russia has been quite high, but, what is also important, it always exists. Provided that you have a stable income and it gradually increases, inflation itself can somewhat “depreciate” your total debt to the bank. If your interest on a loan is, say, 15%, and annual inflation is 7%, then if your annual income increases by the percentage of inflation, in fact your interest costs in the structure of income / expenses will amount to 8% at the end of the year. Inflation, if it rises, plays the most tangible role with long-term loans. And if a default occurs in the country, then it may turn out that you use the loan for free. At the same time, it is rather difficult to calculate the development of the market situation and the situation in the economy, and banks here also insure their risks - with the same increased interest rate.

If we analyze the statistics of early repayments of bank loans, it clearly indicates that the number of borrowers who complete debt payments before the expiration date is decreasing. This can also be explained by the fall in the income level of the population, which does not allow early repayment of obligations, but the growth of financial literacy cannot be written off. In addition, ordinary people are increasingly seeking to satisfy their current needs, rather than spending money on something that is not currently urgently needed.

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And pay the minimum

My name is Nikita, and a year and a half ago I had five loans. I spent ⅔ of my salary on them.

Nikita Yukovich

got out of the credit hole

I paid two consumer loans to open a business, paid off a credit card spent “to zero”, paid installments for equipment. Mortgage was the last loan issued. I was so used to payments that I did not try to change anything: I humbly paid interest and even forgot when and what loan I would end.

When we moved into our apartment and spent money on its furnishings, I realized that I was at risk. What if I lose my job or get sick? I am not immune from the situation when there will be nothing to repay loans: there are no savings, unforeseen expenses happen, and the bank has to pay almost forty thousand every month. I set a goal: to reduce the mandatory loan burden to the level of a third of the monthly salary and at the same time form a financial safety cushion.

I managed to review my credit load, optimize payments and reduce overpayments. Here is what needed to be done.

Savings, cap

I did not want to pay loans for another five (and mortgages - twenty-five) years. Moreover, during this time I will give the banks 4 million rubles in the form of interest - I will have to return almost three times more than I borrowed. The only way to get off the ground is to pay off loans ahead of schedule. I switched to economy mode and at the same time I was looking for a part-time job.

I analyzed the expense items: a lot of money was spent on entertainment - bars and restaurants, cinema. To save money, I gave up hanging out in bars. At first I allocated 3-5 thousand for early repayment, over time it turned out to consistently pay from above 13-15 thousand per month, and sometimes more.

For me, savings turned out to be the main point that helped pay off loans ahead of schedule, but you know this without me. We have already written a lot about this:

Loan Priorities

For example, I have two loans. For convenience, let's assume that I took both loans on the same day and for the same period - 36 months.

Which loan to pay off first

On iPhone

55 000 R

Payment per month

2100 R

Interest overpayment

21 500 R

By car

543 000 R

Payment per month

18 300 R

Interest overpayment

114 500 R

For an iPhone, you need to pay 2100 rubles per month. I have automatic payment set up and I don't even notice that this money is debited. But for a car you have to pay 18,300 rubles each - this amount hits your pocket harder, it's a shame to part with it. Also, the overpayment is five times more than for the iPhone. The brain wants to get rid of this loan as soon as possible.

Every month, due to savings, I have free 3,000 rubles. You need to choose which of the loans to pay off ahead of schedule in the first place. Here are the options.

First the car, then the iPhone. With early repayments in 2.5 years, I will close the loan for the car, only the iPhone will remain: the main debt is 12,000 rubles at 22.9% per annum.

First the iPhone, then the car. I will close the iPhone loan a year later - now you can pay 23,400 rubles a month for a car. After the same 2.5 years, the main debt will remain 4900 rubles at 12.9% per annum.

Debt balance after 2.5 years of early repayments

First the car, then the iPhone

Remaining principal debt

12 000 R

I saved

19 550 R

iPhone first, car later

Remaining principal debt

4900 R

I saved

27 170 Р

It turned out that paying off the “big” car loan first is not so profitable. It is better to get rid of a small loan with a high rate as soon as possible, and then throw all your resources into an unpleasant big loan.

Reduce payment or shorten the term

Loans can be repaid early in two ways: reduce the term of the loan or reduce the amount of the monthly payment. Often people do not know which option to choose.

To answer this question, you just need to play with Excel:

1. Understand what early repayment options the bank gives you (maybe none or only one).
2. Calculate the overpayment for each option.
3. Compare overpayments, terms and everything else that worries you.

For example, I have a loan: 500,000 rubles, 15% per annum, for three years. And I also have 50 thousand, which I will put on early repayment along with the first monthly payment. It is necessary to choose what to reduce: the term or the monthly payment. We consider.

How will the loan change with early repayment

No early repayments

Monthly payment

17 330 R

Credit term

36 months

Total overpayment

124 220 R

I reduce the term

Monthly payment

17 330 R

Credit term

Total overpayment

98 600 R

I reduce the payment

Monthly payment

15 560 R

Credit term

36 months

Total overpayment

112 140 R

It seems that reducing the loan term is more profitable: the difference in interest overpayment is almost 15 thousand. And the same argument is put forward by everyone who advises to reduce the term of the loan.

But in fact, everything is not so simple: these options cannot be compared, because when the monthly payment decreases, I immediately start saving 1,700 rubles every month - the difference between the old and new monthly payments. For these savings of 1,700 rubles a month, you have to overpay almost 15,000 as interest.

And if I reduce the monthly payment, but continue to pay as if the amount of the payment has not decreased, I will get the same big savings as if I had reduced the term. But there will be a bonus: the obligatory payment to the bank will decrease every month. If at some point I don’t have the money to pay the planned monthly installment, it will be possible to give the bank not as much money as before, and not pay fines and late fees.

This is what my sign will look like if I decrease the payment, but continue to pay as before.

Comparison of all early repayment options

No early repayments

Monthly payment

17 330 R

Credit term

36 months

Total overpayment

124 220 R

I reduce the term

Monthly payment

17 330 R

Credit term

Total overpayment

98 600 R

I reduce the payment

Monthly payment

15 560 R

Credit term

36 months

Total overpayment

112 140 R

I reduce the payment, but I let the difference go ahead of schedule

Monthly payment

17 330 R

Credit term

Total overpayment

98 600 R

With a decrease in liabilities, it is easier to form a financial airbag: to let part of the money not for early repayment, but to a separate account. Of course, you will have to overpay interest to the bank, but if you urgently need money for something important, you can not take another loan from the bank, but use a financial cushion.

Schedule payments in the loan calculator

To motivate myself, I made a plan: I wrote a loan calculator in which I calculated how much I would save at the current rate of early repayment and how soon I would close my loans. To enter your data into the calculator, click File → Make a copy in the document.

Here's how to use it.

1. Fill in all fields of the calculator. You need to specify the rate, loan term, opening date and type of payments. Choose how to repay early - reducing the monthly payment or the loan term:

For each of the loans, a payment schedule is automatically compiled, the information is placed on the sheet corresponding to the loan:

2. Specify the amount of early repayment in each month for each loan:

3. View statistics. When all early repayments are indicated, the statistics on loans are considered on the first sheet of the calculator.

For those who do not like old-school signs, we have written a calculator. It has fewer settings, but you can quickly calculate how much you will save if you close the most expensive loans ahead of schedule.

Remember all your loans, and the calculator will tell you

Refinancing

Refinancing is when another bank gives you a new loan at a lower rate so that you pay off your old loan. For another bank, this is an opportunity to earn money on you, for you it is a chance to reduce the interest rate, and, consequently, the overpayment.

Refinancing is good when you have no problems with income and you are just looking for an opportunity to reduce the overpayment. Refinancing is bad when you have nothing to repay the loan and you take a new one to cover the first one and delay communication with collectors.

If there is nothing to repay the loan, it is not worth refinancing

When refinancing, it is important to carefully study the conditions for a new loan: check whether it is possible to repay this loan ahead of schedule and whether the bank fines for this. It may turn out that instead of two years at the current rate, you will have to pay five years at a rate two or three percentage points lower. And over these five years, give the new bank more money, despite the lowered interest rate.

To reduce the overpayment, it is better to take a refinancing loan for a short period: so that its monthly payment is commensurate with the monthly payment on the old loan.

It took me a while to refinance loans: I used to be late with payments, and the total credit burden was such that banks did not approve of refinancing. I managed to refinance after I closed one of the loans: instead of the remaining ones, I took one general one with a rate of 15% - 4 percentage points lower.

My result

In a year and a half, I reduced my credit burden to a safe level for me, refinanced loans and formed a financial safety cushion. Now, when I am writing this article, I have also closed the refinanced loans - only the mortgage remains.

Now I pay the same amount as before: I give about 40,000 rubles a month. But if earlier all forty thousand were a mandatory payment, now I am obliged to pay only 15,000 monthly - everything else goes to early repayment. I have already saved about a million through early repayments, and if I continue to pay the same way, I will save three million. And close the mortgage many years earlier than I should have.

Here's what else I learned while struggling with loans.

No need to save up for early repayment. Saving up for early repayment for six months, in order to pay off more at once, is unprofitable. It is more profitable to pay five thousand every month than to pay sixty in a year at once. As long as I do not make early payments, the bank charges interest on this amount.

It is more profitable to pay as if the credit burden is not reduced. This helped me save more: while I was paying off a lot of loans, I got used to giving back a decent amount of obligations. It was included in my budget, and I tried not to reduce it unnecessarily. And when one of the loans closed, I tried to continue to pay as much as I paid before it closed.

Remember

1. Pay off a high interest rate loan first.
2. If it is possible to reduce the monthly payment, it is better to reduce it, and start up the resulting difference for early repayment.
3. If you don't have to stand in line for two hours to pay early, it's best to make payments as often as you can.
4. If it is possible to refinance loans, you should try to keep the loan burden at the same level.
5. The money freed from the credit burden should also be used for early repayment of the remaining loans.

Many of our citizens apply for a variety of bank loans. At the same time, they do not know how profitable and painlessly you can save on overpayment. Which repayment plan should you choose? Can I get my insurance money back?

Let's consider all the questions in more detail.

How to pay off a loan economically, the most profitable schemes

To date, the most profitable loan repayment schemes are considered to be:

• differentiated scheme;
• annuity option.

If we talk about the first option, then it means by itself slight reduction in monthly payments. In simple words, initially it is necessary to pay contributions in large amounts, but in subsequent months the amount decreases.

This scheme is beneficial when applying for mortgage lending or buying a car.

You can calculate the approximate amount using the formula:

interest rate + fixed part = payment.

In this formula, the fixed part is the repayment of the main body of the loan. The percentages themselves are defined as follows:

(balance*bet)/100.

Consider an example: the client received a loan in the amount of 1 million rubles. .The loan period is 20 years and the interest rate is 12%.

Thus, the total amount should be divided by 240 months (20 years), and the monthly fixed amount of 4 thousand 166 rubles is obtained. However, keep in mind that the interest rate will vary. For example, for the first 10 years, when paying 50% of the principal amount of the loan, the amount is calculated:

((0.5 million x 12%) / 1 year) / 100% = 5 thousand rubles. Thus, the total amount of the monthly payment is 9 thousand 166 rubles.

This scheme is perfect for people who:

• receive unstable wages;
• have a desire to significantly reduce the amount of overpayment;
• makes loans for a long period.

If we talk about the annuity option, then it is used by those citizens who apply for user loans.

With such a scheme, calculation of the total cost of the loan in addition to a one-time commission fee. The entire amount is divided by the crediting period. On a monthly basis, the borrower will be required to pay fixed payment.

This option is beneficial in that there are no problems with the size of the monthly payment. The borrower knows when and how much he needs to pay.

This scheme is great for those categories of borrowers who:

• have a stable salary;
• cannot financially contribute more than the amount due;
• makes loans for a short period.

How to pay off a loan early

The possibility of profitable repayment of loans ahead of schedule largely depends on factors such as:

• the presence or absence of penalties for early repayment of the loan. In simple words, is such an opportunity allowed by the bank;
• Does the agreement include a monthly payment plan?

Analysis of the loan agreement

Before the borrower, when funds appear, go to the bank to repay his loan early, you need to pay attention to some nuances:

• with short-term lending periods, the possibility of early repayment of the loan, as a rule, is absent;
• the agreement may provide for a restriction on early payment of the loan in the first 6 months of its use;
• the agreement may include a restriction on the minimum amount of payment for early closing of the loan.

If the contract does not provide for any restrictions, it is possible to consider the issue of early termination of credit obligations (prematurely repay the loan).

What is the procedure for early payment of a loan?

Any of the borrowers has the full right during the term of the loan agreement repay it in full or in part. But, it must be remembered that, despite the absence of restrictions in the contract, the borrower must contact the bank employee and inform him. You must notify of your desire no later than 30 calendar days before the day when the payment for early repayment of the loan is made.

Moreover, when contacting a bank employee, the latter will ask you to draw up an application for the right to early repay the loan. This document is drawn up in the presence of a bank employee according to the model established by them.

How to close a bank loan

It must be remembered that repaying a loan at a bank, for example, at Sberbank, does not mean at all that the loan is completely closed and the bankers have no claims against the borrower.

Consider the procedure for closing a loan using the example of Sberbank. This scheme is suitable for all other banking institutions.

So the algorithm is as follows:

1. 1 step. Initially, you need to ask the bank staff for a certificate that confirms the closing of the loan and the absence of claims. It is worth noting that some banks refuse to provide it, and therefore it is necessary to argue your request with article 15.26, which includes penalties for bank employees who refuse to issue this document. The penalty is imposed in the amount of 50 thousand rubles.
2. 2 step. Complete closure of bank accounts. This implies that accompanying accounts could be opened when applying for a loan. If the manager declares their presence, you must ask him to close them. You may even need to write an application - it is drawn up in the presence of a bank manager.
3. Final step. Mortgaged property. After the loan is fully repaid, it is necessary to remove restrictions on. This should be done automatically by bankers, but being informed means calm. If the encumbrance is not removed, it is necessary to demand the removal of this restriction.

Having performed such simple actions, we can say with confidence that the loan is completely closed and now you should not worry.

How to pay off a loan faster if there is no money

If the borrower, but has a desire to repay the loan as soon as possible, there are several options:

1. Reach out to relatives or friends. This option involves borrowing a certain amount from your relatives or familiar funds that will help you quickly repay the loan. Agree, it is easier for “ours” to repay a debt than to deal with collectors.
2. Get an extra job. Here, as they say, it all depends on the region of residence or on the very desire of the borrower. You can find an evening part-time job that will allow you to quickly pay off the loan or try your luck on freelance sites.
3. Savings or tax deduction. This option implies the use of your deposit (if you have one, of course). If there are no personal deposits, you can contact the tax office at your place of residence and apply for a tax deduction. As a rule, this will be an amount, approximately 13% of the amount of interest (the loan itself). After receiving the deduction, you can use these funds to pay off the loan.

The loan is paid off, is it possible to return the insurance

In the event that the loan is fully repaid, when trying to return insurance funds, one of several options may occur:

• 1 option. The insurance company may partially reimburse the funds if more than 6 months have already passed since the signing of the contract. As a rule, the insurance company refuses to pay out funds, arguing that this is due to the high costs of administrative support. If the amount of the refund is more than 100 thousand, you can request a printout of the costs of the insurers.
• Option 2. You can fully return the insurance funds only in situations where the loan is repaid within the first 2 months from the date of registration of the insurance policy.

In any of the options, you must contact the insurance company with the following list of documents:

• passport;
• a copy of the loan agreement;
• a certificate from the bank on the full closure of the loan.

When does an insurance company pay out a loan?

Insurers can pay the loan instead of the borrower only in those situations that are specified exclusively in the insurance policy agreement.

There are several types of insurance, namely:

• life insurance and healthier borrower;
• insurance for the safety of property (collateral).

If we talk about the first type of insurance, then this means, for example:

• the death of the borrower;
• establishing the fact of the onset of disability (serious illness, possible disability, and so on).

The second option implies the presence of any damage to the collateral that the borrower himself did not specifically inflict:

• natural disasters;
• fire;
• flood and so on.

It is worth paying attention that all the conditions under which the insurance company repays loans on its own are specified in each specific contract. For this reason, we can say that the conditions are different everywhere and you need to thoroughly study the contracts before signing them.

How to pay off an annuity loan correctly and profitably

With an annuity scheme, the best solution would be to try minimizing the monthly payment and at the same time, without modifying the crediting period.

In simple words, every month the borrower will pay a reduced payment, and postpone the difference from the previous amount.

Eg: The loan is for 20 years. For the first 10 years, the borrower will pay not 10,000 rubles, but 7,000. But after 10 years, the loan will need to be repaid at 13,000 rubles.

However, there is a nuance, for 10 years it is possible, with monthly deposits, to accumulate an amount that is enough to repay the loan early and thereby save money.

Collection by the guarantor of the paid loan from other guarantors

One of the guarantors has the right to recover in court from the second guarantor a certain amount of the loan, only if subsidiary liability is not established.

Article 325 of the Civil Code of the Russian Federation clearly regulates this issue: the fulfillment of subsidiary liability in full releases the remaining guarantors from the fulfillment of creditors' claims.

Moreover, according to Article 365 of the Civil Code of the Russian Federation, the guarantors who paid off the debt of the main borrower at their own expense are fully vested with the powers of the creditor in relation to the second guarantor.

This means that he, in a judicial proceeding, has every right to recover not only part of the money, but also to demand a penalty for failure to fulfill his obligations as a guarantor.

Who has to pay the loan after the death of the borrower

In that case, his debt passes to the immediate heirs. But the heirs have every right to avoid such troubles. This is possible only if they do not claim the inheritance.

In simple words, the loan is paid by the one who inherited from a deceased borrower. If there are none, the remaining amount of the debt is paid by the insurance company.

If the borrower does not pay the loan, should relatives pay?

Relatives of an unscrupulous borrower will have to pay his loan only if one of them is a guarantor, otherwise they have nothing to do with the debts of the borrower.

In case of bad faith of the borrower, the funds will be paid by the guarantors.

Liability for non-payment of the loan: what will happen if you do not pay at all

If the borrower refuses to repay the loan, or cannot do it due to financial problems, the bank may charge penalties or impose a penalty.

You can learn more about interest from your contract, in which everything is indicated (each loan prescribes its own terms of punishment).

The worst option is to go to court and bank. The purpose of the withdrawal is considered to be their sale at auction and reimbursement of the loan amount at this expense.

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About the rules of early repayment - in the program "Morning with the Province"

Banks have a negative attitude towards loan debtors, however, they do not welcome early repayment of loans, as they are deprived of part of the profit.

The borrower also does not always benefit from closing the loan agreement ahead of time.

Let's understand the nuances of early repayment of the loan.

Early repayment is the deposit of funds to pay off a loan in addition to the current loan payment. Early payment is a voluntary service and can be requested by the borrower only at his own request.

Early repayment of the loan is beneficial for the borrower, but bank employees are not at all happy with this decision of the client. Why?

The less time the borrower uses the loan money, the less the overpayment will be.

While early repayment of consumer loans results in minimal savings on the amount of debt, in the case of a mortgage or car loans, the overpayment for loan financing during the entire term can be up to 100% of the loan body.

Early repayment reduces the bank's planned income.

Previously, until 2011, the loan agreements of all banks contained a clause according to which penalties were applied to the borrower for early repayment of the loan.

Since November 2011, the Civil Code of the Russian Federation has been amended, according to which any borrower has the right to repay the debt ahead of schedule (in whole or in part), provided that the bank has been notified in writing of the forthcoming loan repayment one month in advance. For this, credit institutions should not charge fines.

Federal Law No. 284, which entered into force on October 19, 2011, and Art. 809 of the Civil Code of the Russian Federation establish the right of borrowers to early closure of loan agreements. This rule also applies to those customers who took out a loan before the adoption of the amendment.

True, banks, adapting to new conditions, are trying to compensate for possible losses in various ways, for example:

• set inflated commissions (Home Credit Bank);
• charge a commission for recalculating the payment schedule;
• impose moratoriums for several months and limits on amounts (VTB 24);
• refuse borrowers who abuse early repayments in the following loans (many banks).

If the borrower pays an amount that exceeds the payment indicated in the schedule, but at the same time is insufficient to cover the entire debt, then we are talking about partial repayment.

For example, the loan repayment date under the agreement is September 1, and you have only 6,000 rubles left to pay. By July 1, according to the schedule, you need to deposit 2000 rubles.

You can make 2 payments at the same time - that is, 4000 rubles, but you do not repay the debt in full. Due to the partial overpayment, the amount of the principal debt is reduced.

In this case, the bank is obliged to revise the agreement based on the repayment scheme, for example:

• Annuity schedule(payment in equal amounts) provides for the recalculation of the amount of further payments down. At the same time, the payment is reduced only at the expense of the principal debt, and interest and commission do not decrease.
• Differentiated Schedule(decreasing nature of payments) implies a reduction in the repayment period of the loan.

Thus, in case of partial early repayment, the loan term is reduced or the monthly payments are reduced.

With an annuity payment schedule, in the first years the borrower will pay mostly interest. This can be seen in the payment schedule.

Interest is calculated daily on the balance of the principal debt, and the sooner it decreases, the lower the final overpayment will be.

Thus, if from the very beginning of the loan you actively repay the debt, making amounts exceeding the values ​​\u200b\u200bspecified in the schedule, then the overpayment will decrease significantly.

Active repayment after the expiration of half the term of the loan is not profitable, since the main interest has already been paid, only the body of the loan remains.

With differentiated payments, it is more beneficial for the client to reduce the loan term.

In general, both options are somehow beneficial for the borrower, especially if the bank in the contract has not established any restrictions for early repayment.

If the borrower pays the entire amount long before the date specified in the contract, then we are talking about full early repayment. In this case, the client saves significantly on interest, commissions and is released from debt.

This is beneficial for the client both with an annuity and with a differentiated repayment schedule.

To close the entire debt ahead of schedule, you need to notify the bank of your intention (preferably 30 days in advance), and then deposit the required amount to the repayment account.

The bank writes off the entire amount of the debt from the account and closes the loan agreement unilaterally. In this case, the borrower needs to go to the credit department and take a certificate of no debt in order to protect themselves from subsequent claims.

In some banks, the client is offered to write an application, then the bank employee closes the contract manually.

Which option is used in a particular bank is indicated in the loan agreement.

Full repayment of the loan ahead of schedule - a responsible procedure. It is better to clarify all the details with the bank in order to avoid misunderstandings.

To successfully close a credit debt ahead of schedule, follow this algorithm of actions:

1. Notify the bank within 30 days, write a statement of your intention.
2. Specify the amount owed. If you deposit at least 1 kopeck less, the loan agreement will not be closed.
3. Pay off the debt.
4. Take a certificate of no debt under a closed contract.

With a partial repayment, it is very easy for the client to get confused about how much he still has to pay.

To find out the remaining amount when making additional money in excess of the mandatory payment, you need to contact an employee of the credit department of the bank where the loan was issued.

If the agreement provides for the possibility of paying the loan through the Internet bank, then the amount of the monthly payment, as well as the amount to be paid further, will be calculated by the calculator.

If insurance was paid for when receiving a loan, the borrower has the right to demand that the amount of the insurance premium be recalculated.

True, loan lawyers believe that if the loan agreement is terminated early, the sum insured is equal to zero and the borrower can no longer count on insurance payments.

However, lawyers are ready to defend the right of the borrower in court if, upon application, the bank does not voluntarily recalculate the insurance and return the difference.

There is a myth that early repayment of debt in the bank spoils the credit history. This is not entirely true.

The quality of credit history is directly affected by:

• delays;
• collection of debt from the client through the court;
• inaccurate data specified by the client in the questionnaire;
• a large number of microloans at the same time.

However, you should not abuse early repayments. If the client often repays the debt ahead of schedule, then the next application may be refused.

This is especially true for borrowers who repay loans for a third or half of the term stipulated by the agreement.

Note! There is a so-called "gray list", in which banks enter customers who have repaid the loan more than 3 times ahead of schedule, preventing them from earning the planned amount.

Being on this list can be a reason for a refusal in any bank for a person. By the way, banks are not required to inform the client about the reasons for rejecting the application, so the “grey list” is quite actively used.

Features of early repayment of a loan in Russian banks

Despite the fact that since 2011 the possibility of early repayment of a loan has been legalized in Russia, each bank has certain features regarding this issue.

Sberbank allows early repayment of both mortgage and consumer loans, full and partial repayment is allowed.

For full repayment, you must:

1. Deposit the entire remaining amount into your account.
2. Write an application with a request for early fulfillment of obligations under the loan.
3. Transfer the required amount to the bank account.
4. Wait for the withdrawal of money.
5. Get a certificate of absence of any claims from the bank.

In case of partial repayment, the financial institution recalculates and changes the payment schedule. When making a large amount, as a rule, they reduce the loan term and the amount of further payments.

If the client wishes, Sberbank allows an increase in the volume of regular contributions while reducing the term.

In cases where insurance is issued for a loan, money can be returned to the client only for the unused part of the term. For this purpose, an application is written to the bank or insurer. The sample will be provided by the bank.

What documents are needed? Copies are attached to the application:

• passports;
• loan agreement;
• certificates of no debt.

Advice! First make sure that the contract with the insurance company provides for the return of funds in case of early termination, otherwise it will not be possible to return the money for insurance.

This bank also allows early settlement of the loan, both partial and full. The procedure is carried out at the request of the borrower.

There are 2 types of partial repayments:

• reduction in contributions at the initial term;
• reduction of the term with the condition of maintaining the original amount of payments.

In VTB 24, there are no restrictions and sanctions for borrowers who decide to pay off the bank ahead of schedule. The client can terminate the loan agreement at any time.

A client of VTB 24 Bank planning an early repayment of a loan must contact a bank branch, present their passport and contract number, and write an application.

Features that a VTB client needs to know:

• A written notice is sent to the bank at least 24 hours before the planned repayment.
• Money is paid on any day specified in the application.
• If the money is not received by the bank on the specified date, the client's claim will be cancelled.
• After the early repayment of the loan, you should make sure that the loan is closed.

Early repayment of a loan in this financial institution also involves 2 options:

• reduction of the loan term;
• reduction in payments.

Similarly, it is required to notify the bank of its intention in writing.. In the application, which is submitted before the payment date, you must indicate the amount by which early repayment is made.

A bank employee should be asked for a photocopy of his application with a confirmation of receipt and the seal of the institution. Further, the funds are transferred to the client's account or transferred to the cashier in cash.

Advice! Be sure to make sure that the transferred funds are credited to the balance.

At the time of repayment, the borrower's account must have sufficient funds to repay the entire debt, plus the agreed monthly installment. Otherwise, the loan will not be closed.

Early closing of the loan is the right of any borrower. However, in order to use it most beneficially for yourself, you need to take into account the nuances that are described above in the article.

In addition, early repayments should not be carried away, so as not to deprive yourself of the opportunity to get a loan in the future.

Video: Early repayment of a loan