It's a lot of people's wish to get rid of their "slave" status earlier, because it means you can enjoy that life without the pressure of a loan. Note, however, that there may be additional costs associated with early repayment of loans. These costs will vary from bank to bank and different banks will have different early repayment policies。

How much of the default money is required for early repayment of the loan

For the Bank of China, if your mortgage is ready to be repaid in advance for less than a year, the cost may reach a maximum of six months of interest on the loan. However, if the loan had reached one year, there would have been no need to pay any default money. Specific advance repayment conditions and default may require a look at the personal loan contract you entered into。

The Bank of Commerce and Industry of China has a similar policy of early repayment, and default payments do not exceed six months of interest on loans for which the principal is returned. In addition, if you choose to pay in advance, you may choose to reduce the monthly repayment and keep the loan term unchanged, or to shorten the repayment period and keep the monthly repayment unchanged。

IN TRANSPORT BANKS, EARLY REPAYMENT OF A LOAN REQUIRES A CERTAIN AMOUNT OF COMPENSATION, USUALLY 1% OF THE PRINCIPAL AMOUNT OF THE ADVANCE REPAYMENT, BUT NOT MORE THAN INTEREST PAYABLE BETWEEN THE DATE OF EARLY REPAYMENT AND THE MATURITY OF THE LOAN. HOWEVER, SPECIFIC POLICIES MAY VARY ACCORDING TO REGIONAL AND INDIVIDUAL LOAN CONTRACTS。

In the Postal Savings Bank, the longest grace period for repayment of mortgages is one year, during which only monthly interest will be paid, followed by monthly repayment of principal after the end of the grace period. If you pay the mortgage less than a year in advance, you will have to pay a percentage of the principal of the repayment. Specific fees may be checked or verified by contact with the responsible person in the loan contract。

In general, early repayments may be an option of a short period of economic stress, but in the long run they can save interest expenditure. Please, however, ensure that you are aware of and are able to bear the potential default money。