Let us talk about the early repayment of loans by construction banks, including the most important payment issues of concern, such as the amount of default money that needs to be paid. It goes without saying that many buyers may opt for early repayment during the loan process. The question comes with it – does early repayment of the loan lead to the need for additional default money? If so, how much is specifically to be paid? Let's look into it。

How much default money does the construction bank have to pay in advance

As the largest bank in the country, the construction bank naturally has a well-defined policy of early repayment of loan defaults. First, it is clear that the default money consists mainly of two parts: the default money itself and the difference in interest。

WHEN IT COMES TO DEFAULT MONEY, IT IS THE COST OF THE DEFAULT RESULTING FROM THE EARLY REPAYMENT OF THE LOAN. ACCORDING TO THE RULES OF THE CONSTRUCTION BANK, THE AMOUNT OF THE DEFAULT WAS CALCULATED ON THE BASIS OF THE INTEREST RATE ON ADVANCE REPAYMENT PRINCIPAL AND DEFAULT, WHICH WAS ROUGHLY BETWEEN 11 TP3T AND 31 TP3T, WITH THE SPECIFIC RATE BEING BASED ON LOCAL POLICIES AND CONTRACTS。

As for the difference in interest, its existence arises from the loss of interest due to the early repayment of the loan. If you pay back in advance, it will naturally lead to a reduction in the duration of the remaining loan, so that the bank will not be able to obtain from you the full amount of interest due. The bank will therefore require the borrower to pay the difference in interest resulting from the advance payment。

So, how do we do it? It's really very simple. First, the borrower must apply for an advance payment by calling the building services at least seven working days before the date of repayment. When consent is obtained, the parties are required to agree on the date of repayment。

The borrower then needs to read the loan contract and prepare sufficient repayment funds. It is then possible to follow the instructions of the client's manager by carrying an identity card, a bank card, a loan contract, etc., so that the advance payment can be processed and the remaining principal of the loan, interest and default on the early payment can be paid in accordance with the process。