How repayment of an assigned credit works
According to the conditions signed when opening the assigned credit, the repayment of the loan is done every month. The amount is determined by a contract between the credit institution and the creditor.
These monthly payments can begin only upon receipt of the purchased goods and once the legal withdrawal period of fourteen days has passed. In a normal case, the credit allocated will therefore be reimbursed every month for the period agreed in the contract.
The terms of the early repayment of the assigned credit
It is quite possible to prepay your assigned credit. As the latter is governed by the Consumer Code, it is subject to the same rules as other consumer credits.
The prepayment can be made in full, which entails the definitive closure of the affected credit subscribed, or partially.
In the latter case, the monthly payments are recalculated and proportionally reduced in amount or duration.
Note, however, that according to Article L. 311-29 of the Consumer Code, the lender has the right to oppose an early repayment of the credit allocated when it is less than three times the contractual amount of the loan. first due date.
Compensation in the event of early repayment of the appropriated appropriation
This is not a generality, but according to the terms of Article L. 311-22 of the Consumer Code, the lender is entitled to claim compensation from the buyer in case of early repayment of the credit allocated. It is important to read his contract carefully to know if the loan is subject to this type of penalties.
The amount of this indemnity, if it exists, is calculated according to the timing of the prepayment.
If the amount of the latter is greater than € 10,000, the creditor will have to his credit agency compensation of 0.5 or 1% of the amount reimbursed.
How to make an early repayment of the assigned credit?
It is advisable when one wishes to make an early repayment of the assigned credit, to send a registered letter with acknowledgment of receipt to the lender. Read also Closing an assigned credit In general, the terms of early repayment of the affected credit are indicated in the contract signed with the lending institution. The latter must highlight the presence of indemnities or not during this anticipation, as well as the steps to be taken in this case.