With the diversification of lending modalities, loans have become a common financial business. However, there will always be unknown factors in life that will affect our repayment plans, leading to delays in repayment, which will require early payment. Advance repayments can reduce the cost of interest on loans and make repayments less burdensome, but the following points also need attention:

Attention to early repayment of loans

I. Understanding the terms of the contract

Before you can repay your loan in advance, you need to know about your own loan contract and the provisions of the contract for early repayment. Different types of loans differ from one provision for early repayment, such as housing loans, car loans, personal loans, etc. Moreover, the terms of the contracts of different banks or financial institutions are not identical, so that the terms of the contracts and the persons involved in consulting the banks or institutions are carefully read before early repayments are made, so as to avoid breach of contract or unnecessary loss due to ignorance of the terms of the contracts。

II. Access to early payment costs

Prior to early repayment of loans, information is needed on the fees associated with early repayment and on default payments. Since the loan institution is required to calculate the costs associated with early repayment on the basis of the amount of advance repayment, the costs of early repayment also relate to the time of early repayment, the amount of the loan, etc. In addition, in the event of a breach of a pre-payment provision in a contract requiring payment of a breach of contract, it must be known in advance。

Consideration of interest relief

Advance repayments can reduce the cost of interest on loans, which is particularly significant for long-term loans. Whether or not a bank or financial institution provides interest relief requires, however, prior consultation or knowledge of policies to avoid loss of interest due to personal ignorance。

IV. Information on advance payment procedures

EACH BANK OR FINANCIAL INSTITUTION HAS ITS OWN ADVANCE PAYMENT PROCEDURE, WHICH REQUIRES THAT IT BE PROCESSED IN ADVANCE OF PAYMENT, AS REQUIRED. SOME BANKS OR FINANCIAL INSTITUTIONS PROVIDE EARLY REPAYMENT SERVICES ON-LINE OR ON APP, AND IN SOME CASES REQUIRE A FEW WORKING DAYS TO SUBMIT APPLICATIONS, THUS ALLOWING SUFFICIENT TIME。

V. Attention to Repayment Accounts

Prepayment requires confirmation of the correctness of one ' s own repayment account, as well as attention to the adequacy of the balance in the repayment account and the avoidance of unnecessary inconvenience caused by the wrong or insufficient repayment account。

VI. Prepayment time

Early repayment is an important factor to be taken into account, with the effect of reducing interest expenditure as soon as it is generally paid. However, if the loan reaches its deadline, early repayment will not only not reduce interest expenditure, but will also incur costs such as prepayment fees, which will require optimal timing of early repayments during the loan period。