The Lite Lender loans usually include the possibility of a full unscheduled repayment, ie the outstanding amount can be fully repaid early. Incidentally, some banks also offer installment loans with free total repayment. How you can protect yourself, we show you. Against this background, the question arises: can a Lite Lender loan be repaid early? For an overview of all the information on the topic, see What to Remember Before You Take Out a Loan?
Is a premature termination of a Lite Lender loan possible?
Hello Troy71, the possibility of early termination is relatively limited by law: Because your debit interest obligation is only 10 years after complete payment, you can not use the statutory right of termination after 10 years (489 para. 1 no. 3 BGB). Thus, credit institutions – including the Kreditanstalt für Wiederaufbau (Lite Lender) – can reject the early termination after the constant constant review according to the federal case law of the Federal Court of Justice.
In the Kreditanstalt für Wiederaufbau, however, this applies only to the two support programs “Home Ownership” (No 124) and “Age-appropriate Remodeling” (No 153), as these have no special repayment possibilities. For all other Lite Lender housing programs, there are an unlimited number of special repayment options. Basically, you have two options: you either take out a term loan with another house bank for the follow-on financing of the Lite Lender tranche in 2015, or you learn from the house bank if it will release you from the credit agreement prematurely and switch immediately to another lender.
A loan is basically a lease with legal consequences. The borrower gets a certain amount from a lender. The loan is fixed for a certain period of time. A loan requires a contract. These are usually medium- or long-term contracts. Through appropriate agreements, which should be clearly regulated in the contract, you can repay a loan.
This can be done in special payment or by early repayment. The conclusion of a loan agreement requires two legally binding declarations of intent from the borrower and the lender. The lender can also demand collateral, which must be available at the time of closing. If interest is charged over time, which is the norm in practice, these are fixed in advance.
These interest rates may be set by agreement, according to the price list or according to the legal regulations. In addition to the interest, further customary banking expenses such as processing costs or commission interest may be charged. These include the exact loan amount, the interest, the other expenses, the terms, the repayment installments and the annual percentage that represents the total burden per year.
In principle, the loan agreement expires on the specified date. However, there is also the opportunity for both parties to terminate the contract prematurely or exceptionally. However, this is usually associated with the payment of an early repayment, which is usually also enshrined in the loan agreement. Notwithstanding this sanction clause, there is scope for negotiation if a loan is to be repaid.
Therefore, borrowers wishing to repay a loan should in any case negotiate with the lender and explain the precise justification for early termination of the contract. As a rule, the different types of loans are repayments. In the installment loan, the interest amounts are calculated for the entire duration of the loan term and subdivided into equal tranches.
This means that the monthly costs remain the same over the duration. As a rule, the borrower receives a precise schedule, in which all interest and principal payments are to be listed in detail. The annuity loan also has a constant monthly fee all the time. The repayment amount does not change with this procedure, but the interest is constantly calculated according to the respective loan level.
But it can also be a loan in property loans. The borrower in this case receives a position for a period of time. The agreed user fee is payable at the end of the contract period in a single amount. In addition, the item must be returned in the same quality and quantity to the lender.
When taking out a loan, the likelihood should always be considered that this loan can be repaid early. In such a case, it is advisable to carefully check whether the repayment of an ongoing loan is even possible. If a loan is closed at an interest rate that should, after some time, be well above the current interest rate, it may be appropriate to trade with the lender to pay off the loan.
However, it is important to keep an eye on the expenses involved. Prepayment charges, which are typically incurred in the event of premature termination, may need to be converted to the new loan. Another option for the Replace Loan is to take out a new loan. Replacing an old loan and being included in the new loan agreement makes the monthly fee clearer and often reduces the monthly sums.
If the new loan is to be settled with the same borrower, there can not be any early repayment as new contracts are concluded. However, it is advisable to consider the possible expenses and the new interest. In the business world, it is common practice to periodically review existing loans and see if you can repay a loan.
Such rescheduling takes place on a regular basis to reduce the monthly burden and raise new funds at lower interest rates and maintain the capacity to act. Even in the private sector, debt relief only pays off if there are no increased expenses and the benefits, such as lower interest rates, outweigh the disadvantages. A special feature is when the loan is no longer long-term.
If you want to repay a short-term loan, the lender usually waives an early repayment penalty. Thus, a new loan can be concluded or the current loan repaid prematurely and without further expenses. The loan agreement must include details such as the amount of the loan, the repayment and the annual fee percentage.
It can be useful in spite of the exactly defined terms, if you want to repay a loan. For example, debt rescheduling, which translates multiple liabilities into one loan, typically spares money and gives the person concerned better insight into their own financial situation. Nonetheless, before replanning, it should be carefully examined what expenses are incurred and the date on which the loan is to be repaid.
Settlement fees and a possible upfront payment may provide for additional costs that must be taken into account in the rescheduling. With the new loan financing, all expenses incurred, which also include any repayment amounts, are usually included in the new loan amount. This creates a manageable and controllable financial situation for the borrower.