Yes, an online loan, like any other consumer loan, can be returned to the bank before the end of the term. This is also called repayment. This ultimately applies to all consumer loans, but above all to home equity financing. If circumstances change, for example with a higher salary, or if a small blessing comes from a savings plan, insurance or premium, it’s worth thinking about early repayment. Some banks offer the possibility of free special repayment.
Is an early repayment of an online loan possible?
Yes, an online loan, like any other consumer loan, can be returned to the house bank before the end of the actual repayment period. Anyone who wants to repay an online loan before the end of the actual repayment period to the house bank, should attach great importance to free unscheduled repayments when comparing the loan. 2. Unscheduled repayments of online loans are critical: if the borrower pays the loan back to the principal bank before the deadline, the principal bank fails to pay the interest – hence, the principal bank seeks to offset this loss of profit on unscheduled repayments in different ways:
The customer may receive from BuyNer a certain amount of special repayments per year or per calendar month. However, in this case, some banks may charge a higher interest rate because of the extraordinary benefits. For special payments, an interest premium between 0.05 and 0.1 percentage points is usually calculated on the stipulated interest.
Some banks today often give their customers a number of totally free special repayments of a certain size. If the loan agreement expressly provides for a free repayment of the loan with the principal bank, the borrower will incur no additional costs in the case of a special payment. In any case, in the case of a special repayment of the online loan, the debtor must pay an early repayment penalty:
In this way, the house bank also wants to reclaim the lost interest income.
For a residual loan term of less than one year, the early repayment will be a percentage of the loan amount. If the remaining maturity is more than one year, the borrower must pay 0.5 percentage points of the loan amount to the bank as an early repayment penalty.
In addition to the early repayment penalty, some banks had charged their customers a processing flat rate for the calculation of the settlement amount in the event of early repayment of the loan. According to a ruling of the district court of Frankfurt, this additional fee is inadmissible since 2012 – should a house bank nevertheless charge these fees, the consumers can take action against it. Before concluding a credit agreement with free or paid special repayments, the customer should always carefully consider whether he can make an extraordinary partial payment during the term of the online loan.
Before any unscheduled repayment, the customer should also calculate exactly how much the prepayment of the unscheduled repayment is. It makes sense to calculate exactly whether it pays off for you to charge the additional costs of early repayment or whether it is more profitable overall to repay the loan as planned and to raise the surplus capital.