Hello there,Repaying loans in advance
There are different ways. At present, most banks can provide five ways to repay loans in advance for customers to choose.
, that is, the customer will be all remainingloan
Pay off in one go. (The interest is not repaid, but the interest paid is not refundable)
Second, some of the early repayments, the remaining loans keep the monthly repayment amount unchanged, and the repayment period is shortened. (saving more interest)
The third type, part of the early repayment, the remaining loans will reduce the monthly repayment amount, keeping the repayment period unchanged. (Reduce the monthly burden, but the savings are lower than the second)
The fourth type, part of the early repayment, the remaining loans will reduce the monthly repayment amount, while shortening the repayment period. (saving more interest)
Fifth, the remaining loans keep the total principal unchanged, and only the repayment period is shortened. (monthly increase, reduce some interest, but relatively uneconomical)
Experts suggest that in advance repayment, the principal should be reduced as much as possible, and the loan period should be shortened so that the interest on the expenditure is less.