Are you experiencing difficulties in repaying your credit? Credafin provides information on the different solutions and options available to you.
Am I allowed to repay early?
Firstly, it is possible to make a partial or full early repayment of your loan. This means you pay off the remaining capital before the date originally set according to the contractual clauses. To do this, all you have to do is notify your lender by registered letter at least 10 days prior to carrying out this procedure.
Your loan is considered repaid if you fully repay the capital of the credit. In this scenario, you must have adhered to previous deadlines. When you choose to repay only part of the borrowed capital, you should plan to repay the remaining balance later. You will benefit from a reduction in the total cost of the loan in this case. Be aware that you will be required to pay a fee if you repay your loan ahead of the scheduled date.
The rate of this fee depends on certain conditions:
- The fee rate is 0.5% of the repaid capital if the time between the agreed end date of the contract and the repayment is less than one year;
- This fee does not exceed 1% of the repaid capital if the time between the agreed end date of the contract and the early repayment is more than one year. For example, if you have to repay early on August 10, 2012, a credit of €16,250 obtained on September 10, 2010, you will only pay €16,250 + €165.25 (1% of the capital).
- This fee cannot be higher than the interest the lender would have accrued if the loan had not been repaid early. Moreover, the lending institution can only claim such a fee in three cases:
- the early repaid loan is a line of credit;
- the repayment is made for the execution of an insurance contract concluded to cover the loan repayment;
- a justice of the peace has reduced your obligations to the borrowed amount or in cash.
- No confusion should arise between this early repayment and the consumer’s right to terminate a line of credit at any time without paying a fee.
Can I repay the loan with a more advantageous loan consolidation?
While the answer to this question is affirmative, caution should be exercised. Even when you encounter a more attractive loan offer, be sure to carefully review important elements of the new credit such as its duration or the borrowed amount. Also ensure that the fee amount for early repayment is well considered. To avoid unpleasant surprises, ask your intermediary or lender to perform a simulation of your current situation to compare it with that of your new loan. This is the only way to make an informed choice.
Let us find a solution together with Credafin
With this new loan, you consolidate credits. Your loan repayment is thus anticipated thanks to this credit consolidation. You will then repay all your contracted credits with the payment of each of their fees.
Finally, do not limit yourself to comparing rates when concluding the new loan. Consolidating credits is more advantageous! Perform all necessary calculations diligently. Credit consolidation can have a higher cost. This is the case when it includes a mortgage, for example.
