The construction of a branch loan is the repayment of a fixed amount per month by the customer after the bank has applied for the loan in accordance with the agreed repayment plan. If the client wanted to pay in advance, could the construction branch pay in advance? Let's go into it。

Can the construction branch loan be repaid in advance

First, under the banking regulations, the customer can pay in advance at any time and the bank should also accept the customer ' s request for payment in advance. Thus, the construction of a branch loan would theoretically allow for early repayment。

In reality, however, banks can make up for economic losses resulting from early repayments by, inter alia, collecting default money. Therefore, the issue of liquidated damages also needs to be taken into account by the client in early payment. The default amount for the construction branch loan is calculated on the basis of the amount of the customer ' s remaining loan and the amount of the repayment period, which is calculated as follows:

DEFAULT = BALANCE OF PRINCIPAL * 2% * REMAINDER OF PERIOD

Of this amount, the remaining principal refers to the amount of the principal loan outstanding from the client and the remaining period refers to the remaining repayment period of the client。

It should be noted that if the amount paid by the client in advance exceeds the remaining principal, the bank will not charge the excess in default。

In addition to this, if the customer has problems with repayments in instalments, or if the loan is overdue, the bank also imposes a corresponding penalty on the customer when the client has paid in advance, such as a higher amount of default, a restriction on the customer's credit line, etc。

In general, payments may be made in advance if the customer has complied with the bank ' s requirements during the construction sub-prime loan repayment period, taking into account factors such as the costs associated with early repayment and default。