Paying Advance Loan – Is it possible to pay personal credit, financing or payroll loan before the end of the term, are you entitled to any discount on interest? If you want to pay advance loan to eliminate costs or to lower interest, it does not matter in addition to the right constituted the borrower is still entitled yes to discounts that can reach 20% or more.
Is Paying Advance Loan Worth It?
Although the account is quite simple, banks and financial institutions still try to wrap up the credit borrowers. The intention is even to make the client give up the anticipation, besides omit the discounts. It is worth remembering that the client does not have to pay fees or fees to request the advance payment of loans.
The Code of Consumer Protection is very clear as to the abatement in the early settlement of loans or financing, no matter where the credit was granted: by banks, financial institutions or stores such as C & A, Renner and Riachuelo that provide personal credit etc.
If you are determined to pay off your loan in advance in full or partial balance, you are entitled to the proportional reduction of interest and accruals applied in the operation. In fact you will only pay for the interest costs during the time you used the financing.
Those who normalize these issues are the Central Bank – BC itself, the abatement occurs in most of the loan operations available in the market, such as personal loans, payroll loans, vehicle financing, real estate financing, credit and installments with interest, your credit card may be withdrawn in advance, and all financial transactions involving the granting of credit or borrowing money at interest.
discharge bill or letter of anticipation
When requesting the discharge ticket or prepayment letter of payment, the amount is updated until the day the payment will be paid, the discounts follow the same reasoning. Remember, no form of charge or fee should be applied to the prepayment of the loan, in case it happens that this action violates the Consumer Defense Code.
The tip is you to read in your loan agreement on the clauses related to early discharge, in general, the contracts already provide for reductions in interest rates, taxes and tariffs.
Negotiate prepayment rates
Perhaps the most hated term for borrowers wishing to repay or repay their loan debts – pre-foreclosure rates – is a fee charged by the bank (percentage of principal amount) as a penalty for repaying the loan before the end of the term .
As a knowledgeable borrower, try to negotiate this fee before signing the contract or talking to your manager for a waiver or reduction before making the final payment.
calculation to pay off the advance loan
“The creditor institution must provide you with a statement of the balance due, it will include all the charges incident and the calculation to pay the loan in advance , only with this statement you will be able to compare the costs”
Consider paying the loan upfront
If you are thinking about repaying your loan before the contract expires, reconsider your decision well, once you are paying the principal amount, and most of the interest has already been released with the payments made so far, all remaining installments will have discounts – stay tuned.
You may consider the option to continue with the monthly payments if the discharge does not bring any advantages, since you are only paying the amount borrowed and for some reason the bank lender wants to pack the transaction. This logic applies only to loans contracted for those who wish to reduce the balance or early interest discounts.
If you are trying to pay your loan early and the institution is causing problems or is refusing to grant the discount, file a complaint in your city’s Procon or file a complaint with the Central Bank at 0800 979 23 45 .