Replacing loans without prepayment penalty

Replacing loans without prepayment penalty

It is possible to repay a loan before the planned timetable, but this must take into account the prepayment penalty planned by the bank. If a borrower chooses to premature repayment of his loan, the bank has the right to a prepayment penalty, as it would cause economic damage from the interest not received but planned. The sooner the debtor wants to replace his credit, the higher may be the fee for early maturity.

Replacing loans without having to make a prepayment penalty

Under certain circumstances, the loan can be redeemed before the scheduled time and the penalty can be bypassed. There are three cases, how to get out of the contract:

  • The expiry of the fixed interest period must be taken into account by the Bank. The term of a fixed interest period is a maximum of ten years. If this term has been exceeded, no prepayment penalty may be demanded.
  • Due to a faulty cancellation policy, the payment of a prepayment penalty can be completely eliminated. If the cancellation policy in the credit agreement is incorrect or has been formulated incompletely, the debtor may at any time withdraw from the contract by termination or revocation.
  • It should be scrutinized whether the market interest rates have increased during the contract period. If this is the case, the borrower has the option to ask the bank to settle the residual debt that the debtor owns. This would be done through a profitable investment of the sum. In this case, the borrower would also have to pay no prepayment penalty.

It always makes sense to consult an expert. The contract can be reviewed by a specialist lawyer or the consumer center, as they can determine the error in the cancellation policy and you can then demand the money back from an already paid and unlawfully demanded early repayment penalty from the bank.

What else should be considered?

Some steps should be taken to avoid untimely loan repayment, which can avoid the cost of prepayment penalty under the conditions already mentioned:

  • Further information should be gathered from the documents of existing contracts. In particular, the residual debt still to be borne at the time of replacement should be taken into account in order to avoid further indebtedness.
  • An audit of the financial market is recommended as it is possible to reschedule. This means replacing or replacing a loan with another loan to get a lower interest rate. Debt rescheduling is always appropriate when there is not enough equity to effect an early, early redemption of the loan.
  • A specialist lawyer or insurance advisor should always be consulted. Whether a payment can be bypassed for prepayment, the experts can best recognize. If costs are incurred when consulting the experts, they can often be covered by an existing legal expenses insurance.
  • There should always be several options in advance and the credit agreement to be scrutinized. In most cases, the bank also finds calculation errors in an estimated prepayment amount, which offers the option of avoiding them or keeping them very low.

It is also advantageous if the bank itself was already involved in similar cases where the borrower could avoid a prepayment penalty. Research on the Internet to the house bank in combination with the payment for prepayment penalty can be helpful.

The best way to apply for a mini loan quickly and easily!


Mini loans are useful for many cases. You can borrow a small amount to carry out an urgent repair. Of course also for other cases, but in many situations it concerns a repair to the car, home or an electrical device. And you just do not have enough cash to make the payment yourself. No problem, you can apply for a mini loan at the bank. They are responsible for the financial and you are further helped.

Apply for a personal loan

In the other case, you would have to apply for a personal loan and that often already involves at least 2500 euros. That is too much for small amounts, you would be tied to the loan for too long and have to pay it off for a long time. A mini loan is for an amount up to 1000 euros. In some cases and for smaller amounts you also have to repay it in one go. So you have to pay back the amount you borrow along with the costs. But if you know exactly where you stand, you can adjust to this. Many families have a hard time at the end of the month and have to bridge this with a mini loan. That way you can still make an urgent payment and you will not get into trouble.

In recent years, banks have expanded the range of their services. Where you used to have the traditional loans for a house and car, you now have a wider range. And that is also necessary because the needs of the customers have changed. So now you have the need to borrow a small amount and that is possible with a mini loan. A personal credit such as a personal loan is now also possible. That way you get the money and you can do whatever you want with it.

Get a mini loan on a bank

You can of course find more information about the mini loan on the website of a bank. There you can see all the information and you can also find out more about the costs and conditions. It is important to see how much additional costs are involved if you want to apply for a mini loan. Then you know from the start how much you have to pay back. If you wish to apply for the mini loan, you can do so via the bank’s website. You send everything on and the bank will process your application. You will receive an answer quickly and with a positive answer you will immediately have the money in your possession.

The bank must always check whether you can execute the repayment. They do this by looking at your financial situation. You can send your income and expenses to the bank via documents.