How should we respond

The construction bank didn't pay off early

As the demand for quality of life increases, people will choose to invest their idle funds in different channels after they have completed their daily expenditures, with a view to obtaining better asset returns. Among them, real estate investment is one of the areas that many people prefer. Many people choose to lend to buy property, and in the process of doing so they often face problems of early repayment. Early repayment not only saves interest on bank loans, but also reduces the future debt burden of lenders. However, when early repayments were made, many found that they were still paying more than they had previously been and could not reach an agreement with the bank。

First of all, let us look at the concepts of “early repayment” and “early repayment of default”. “Advance repayment” refers to the act of the lender making an advance payment of part or all of the loan within a specified period of time. The term “advance repayment default” refers to a restrictive measure that the lender has agreed in the loan contract in order to secure the financial interests of the bank. The default is usually calculated on the basis of the borrower ' s share of the advance repayment of the principal amount, which varies significantly. The early payment default policy of different banks is not the same, and therefore the early payment policy of banks should be fully understood when making such payments。

Second, some banks may have different provisions to secure the financial interests of the bank. For example, the construction bank would charge a default payment in advance. In particular, after 2019, the construction policy was adjusted to rationalize the calculation of early repayments of defaults. In most cases, the bank's early repayment policy is issued through various official channels, through which borrowers can consult the latest policy in order to develop a corresponding repayment plan。

Lastly, if difficulties were encountered in early payment, what should be done? In the first case, where the lender does not have the capacity to repay the default money charged by the bank, an attempt can be made to reach, in consultation with the bank, a programme of deferred repayment, relief or exemption from default money. In the second case, if the lender does not have the capacity to address the problem, it can also assert its rights under the relevant laws and regulations. In such cases, lenders should consult professional lawyers in order to understand their legal rights and develop strategies to defend them。