The latest update of Banks' fees for early repayment 2022

When borrowing from a bank, customers can pay off the loan before the due date according to the regulations of the lenders. However, when finalizing the payment, the customer will have to pay an early penalty fee. So prepayment fee what? How is it calculated? Why pay a penalty fee for early repayment?

Let's find out through the content of the article!

What is the prepayment penalty fee?

Early repayment penalty fee is a penalty imposed by the lender to the borrower who wants to complete the principal loan repayment at a time, earlier than the time limit specified in the credit contract. use.

Early repayment fee applies when customers pay off the loan

Depends on the time final settlement customer's loan contract and form (mortgage or credit) Mortgage loan) but the penalty fee for early repayment will be calculated differently by the bank. The penalty amount will be calculated based on the total outstanding balance of the loan contract.

Why pay the debt early but still be penalized?

Many customers wonder, why is it that you pay off your debt before the due date but incur a penalty fee? It is for the following reasons:

The bank's collection of prepayment fees is to offset the bank's interest payments on capital mobilization that have been incurred when customers pay their debts ahead of time.

Provision for possible risks such as interest rate risk or balance of mobilized capital between interest rate and loan term.

The bank will have to take time to disburse this money to other customers. At the same time, it is a sanction measure to penalize borrowers who violate signed credit contracts.

Improve responsibilities and obligations to borrowers.

Find out what is the interest payment ratio?

How to calculate early debt penalty fee?

To be able to calculate the early repayment penalty fee, customers can use the following calculation formula:

Early repayment fee = Prepayment rate x Prepayment amount

In there:

Early repayment fee rate: is the percentage specified in the contract at the time of signing the loan contract between the customer and the bank.

Prepayment amount: Is the remaining loan amount that the customer makes early payment

Specific examples of how to calculate early repayment fees

Customer A applies for a loan with package information installment loans as follows:

Loan amount: 500 million VND

Contractual installment period: 24 months

Penalty fee for early repayment: 3%

Time of payment: 3 months before the deadline

Remaining balance: 100 million VND

Thus, the penalty fee for early settlement in this case is calculated as follows:

3% x 100 million = 3 million

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Penalty fee for early repayment of the latest update of banks

Penalty fee for early repayment of Vietcombank's debt

Currently, the bank Vietcombank There is an interest program for Mortgage loan incentives for customers who need a loan to buy land or buy a house with an interest rate of only 7.5%/year (customers can choose an additional 2-year fixed package of 8.6%/year, 3-year fixed rate of 9.5%/year) 4%/year), the interest rate after preferential treatment is 10.5%/year. In addition, the application process is quick about 2 hours, prepayment fee extremely low.

Fee for early repayment of principal at Vietcombank:

First year: 1.5% of the principal amount prepaid.

Year 2-3: 1% of the principal amount prepaid.

Year 4-5: 0.5% of the principal amount prepaid.

From the 6th year, customers will not have to pay early penalty fees.

Sacombank's prepayment penalty fee

Sacombank has an average personal loan interest rate of 10.5%/year in the first year, from the second year onwards, the average interest rate is 11.5%/year, with an average early repayment penalty fee. 3% on prepayment amount.

Agribank's early penalty fee

Agribank is the only bank that has a penalty fee for early repayment of 0%/year. This is a very low interest rate compared to other banks. Loans under the preferential interest rate program, the penalty fee is usually 1% - 2%. Customers should carefully review the credit contract before signing.

An example of a loan scheme is as follows: You are Agribank mortgage loan 100 million, the loan period is 12 months, the penalty fee for early repayment is 1%. If by the 3rd period you pay 30 million VND before the due date, how is the penalty fee calculated?

Penalty fee = 30,000,000 x 1% = 300,000 VND.

Techcombank's early repayment penalty fee

Loans disbursed before June 23, 2014 (except for business loans – revolving credit lines, mortgage loans) and loans disbursed from June 23 2014 (except loans for business households (loans), mortgage loans for savings books).

Early repayment in the first year 3% of the prepayment amount.

Early repayment in the second year 3% of the prepayment amount.

Early repayment from the third year 2% of the prepayment amount.

Business support loans (loans)

Early repayment in the first year 3% of the prepayment amount.

Early repayment in the second year 2% of the prepayment amount.

Early repayment from the third year 1% of the prepayment amount.

OCB bank prepayment penalty fee

OCB offers a penalty fee for early repayment as follows:

Under 12 months: 3% x Prepayment amount.

From 12 months to less than 24 months: 2.5% x Prepayment amount.

From 24 months to less than 36 months: 2% x Prepayment amount.

From 36 months to less than 48 months: 1% x Prepayment amount.

Over 48 months: No penalty fee.

VPBank's early penalty fee

The penalty fee for early repayment is applied by VPBank in each specific case as follows:

1 year back: 3% x Prepayment amount.

From over 1 year to 2 years: 2% x Prepayment amount.

From over 2 years to 3 years: 1% x Prepayment amount.

From over 3 years to 4 years: 0.5% x Prepayment amount.

From more than 4 years or more or the actual loan period reaches 70% of the loan term under the Credit Contract or more: Free; The minimum prepayment fee for each time is VND 500,000; (A year is understood as having 365 days).

Regulations on early repayment agreement

Pursuant to Article 474 of the 2005 Civil Code, the borrower's debt repayment obligation is as follows:

Borrowers of money assets must pay in full when due; if the property is an object, it must return the object of the same type in the correct quantity and quality, unless otherwise agreed.

In case the borrower is unable to repay the object, it may pay in cash according to the value of the borrowed object at the place and time of repayment, if agreed by the lender.

Debt repayment place is the place of residence or the place of head office of the lender, unless otherwise agreed.

In case the loan has no interest but when due, the borrower fails to pay the debt or fails to pay in full, the borrower must pay interest on the late payment debt at the basic interest rate announced by the State Bank corresponding to the term of the loan. late payment at the time of debt repayment, if agreed.

In case of interest-bearing loans but when due, the borrower fails to pay or fails to pay in full, the borrower must pay interest on the principal and overdue debt at the basic interest rate announced by the State Bank corresponding to the term of the loan. loan at the time of repayment.

In addition, according to Article 478 of the 2005 Civil Code stipulating the performance of a term loan contract as follows:

For a term loan with no interest, the borrower has the right to return the property at any time, but must give the lender a reasonable time in advance, and the lender can only claim the property back. before maturity, if agreed to by the borrower.

With respect to a loan contract with a term and interest, the borrower has the right to return the property before the maturity date, but must pay the full interest by the term, unless otherwise agreed.

Conclude

The content of the article has helped you understand more about the early repayment fee and why there is a penalty fee when you pay off the loan, right? Hopefully with this information, you will have a more specific view and have a reasonable repayment plan.

Information edited by: banktop.vn