You have a loan that is nearing its payback date, but is currently not economically viable. At this time, the only option and execution expires. But you don't understand What is bank maturity?? What conditions and procedures will be required upon maturity?
If you do not fully understand the bank maturity. In this article, Bankcuatoi.com will help you learn in detail about the maturity method of a bank loan.
What is bank maturity?
Expire is a phrase used to refer to loans that are nearing the payment date of loans to banks. The maturity date is the last day of the contract and the borrower must repay the loan in full according to the commitment date stated in the contract.
Bank maturity is a service for extending the loan period at the bank. When a loan has reached the payment period but is not economically sufficient, it will usually be matured to extend the ability to repay the loan at the bank.
To put it more simply, bank maturity is a form of re-borrowing when the old loan has expired but has not been paid in full. At maturity, borrowers will have more time to borrow money, and at the same time avoid falling into bad debt groups.
Benefits of bank maturity
Currently, debt maturity is not allowed, but because of the huge profit, many credit institutions still provide it. Because of the following benefits.
- Borrowers pay their loans on time and avoid falling into bad debt.
- Minimize the possibility of falling into a loan shark loop.
- Be able to stay in business to make a profit and be able to repay the loan in the future.
Understand debt reversal and bank maturity
If you can't tell the difference What is bank maturity? and what is debt repayment. Let's see the similarities and differences below.
| Alike | Difference |
|---|---|
| The purpose is to extend the repayment period for a loan that is about to expire. Both take fees from 0.3 to 0.7%/day with the total amount used for maturity and repayment. | Amortization means turning an existing loan into a new loan to extend the repayment period. Maturity is a form of re-borrowing at a bank when the old loan has expired but has not yet been paid. |
When is the bank due?
As the loan agreement nears its closing date, it is time to mature. The maturity time will be specified in the loan contract.
For loans that need to be matured, you need to pay the principal amount borrowed from the bank. You need to pay before this date to avoid falling into overdue debt and leading to bad debt.
Current forms of bank maturity
Currently, there are 3 different forms of bank maturity that you can refer to.
On-site expiration: It means that when you have a loan at a certain bank, the contract period has expired. Then extend another loan contract at the same bank. Borrowers will be extended loans based on the type of collateral attached. After the bank evaluates the property, if it finds that your property and business is feasible, it will provide an additional limit for customers to use and will charge interest for a certain period of time.
Bank debt transfer maturity: Means transferring credit contract from bank A to bank B with preferential interest rate and term.
Other due dates: As a form of customer having to withdraw the book to the name, split the book or merge the book for sale, etc.
What is the bank's maturity procedure?
For maturity, the bank will require the following documents:
- Identity card or citizen's identity card.
- Household registration book or temporary residence book is absent.
- Certificate of current marital status.
- Copies of mortgage documents such as: Red book, car registration certificate, etc.
- If you are a corporate customer, you need to have a business registration license for at least 2 years, business seal, business establishment license.
- Contract of mortgage of loan property.
- Debit note.
Is there a fee for bank reversal?
Each loan will have a different interest rate charged. The interest rate for large loans is lower than for small loans.
In addition, at each time period, credit institutions will collect different maturity fees.
For example, if you borrow from 3 to 5 days, the maturity fee will be different from that of a 7 day loan. In addition, there will be another way to calculate block 5, 7, 10 days according to loan demand. The block fee is a fixed fee for the number of loan days, for customers who use less than the fixed day, this fee will not change.
Fraud warning on bank maturity
When it comes to maturity, many people worry about not being able to pay. And fear of being fined and falling into bad debt. Therefore, he has sought every way to have money to pay, even looking to black credit institutions for hot loans with high interest rates.
However, you do not know that you are being tricked by the black credit union into signing loan documents with high interest rates. Therefore, when borrowing money, you need to be wary of these black credit institutions.
Here is the post explaining What is bank maturity?? Hopefully, this information has helped you better understand bank maturity.
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