Simulate an early loan repayment


What is an early loan repayment?

What is an early loan repayment?

The early repayment is the payment by the borrower of part of the capital borrowed or the totality of the capital remaining due. The early repayment is calculated taking into account the total amount borrowed from which the capital already repaid by installments is subtracted.

Repayment can be achieved by terminating the term of the loan agreement.

As a result, the borrower can repay all or part of the outstanding capital to the credit institution.

Early repayment allowance

During an early repayment of an immo credit, the bank may apply fees as stipulated in the loan agreement, in accordance with Articles L312-21 and R312-2 of the Consumer Code. The IRA (Early Redemption Indemnity) or the PRA (Early Redemption Penalty) are capped at 3% of the outstanding capital, without these indemnities or penalties being greater than 6 months of interest at the rate fixed at the time of the subscription of the loan immovable.

It is possible to negotiate fees with the bank provided you do so before signing the refund.

However, it is important to know that early repayment is not always possible if the outstanding capital is less than 10% of the total amount of the loan. This clarification is mentioned in the clauses of the loan agreement.

How to calculate?

money calculator

To know the maximum amount of prepayment allowances, it is possible to use an online simulator or to perform the calculation taking into account the amount of capital borrowed and the rate of credit.
For example, in the case of an immovable loan of € 150,000 at a rate of 5%, of which the outstanding capital is € 100,000, the allowances or penalties are calculated as follows:
Or 3% of the outstanding capital: (100,000 x 3) / 100 which corresponds to 3,000 €;
That is 6 months of interest at 5%: (100,000 x 5) / 100 x 6/12 = 2,500 €.
In the latter case, the IRA is the most favorable for the borrower.

Real Estate Mortgage Refund Simulation Tool

Real Estate Mortgage Refund Simulation Tool

A simulation tool is able to calculate, from the data provided, the amount of partial prepayment of an immo credit. To do this, the borrower must provide information on the Internet page:

  • The remaining capital
  • The credit rate
  • The remaining term to be repaid
  • Repayment payments excluding insurance
  • The amount he wants to repay in advance.

Once all these elements are transmitted, the simulator of early repayment of a mortgage presents a new depreciation schedule. Read also Decrypt a depreciation schedule It specifies the new monthly payments, the duration of the loan, the capital remaining due, the amount of interest.
The result of this simulation is to know the new cost of credit as well as the gain realized by the borrower.

When can I take out a free credit?


The free credit can be proposed for a real estate project but also consumer goods, services and holidays. Partly a property with an interest-free loan is possible when one matches the eligible borrower profile. But the free credit is also offered to consumers who want to pay a consumer good in several times without having to bear borrowing interest. Focus on different situations that can qualify for 0% credit.

Free real estate loan

Free real estate loan

The zero interest loan is a free loan that is not available to everyone.

Its attribution subject to conditions depends on different criteria: the situation of the applicant, type of housing or type of work for example.

The quality of first-time homebuyer is required to qualify for a free real estate credit, meaning that the borrower has not owned his or her principal residence for at least two years.

This two-year period is assessed on the date of the loan application. However, the borrower is not required to comply with this condition in some cases. For housing to be considered as principal residence, the borrower must remain there for at least 8 months a year, except in the case of force majeure, health problems or professional constraints.

Similarly, the free mortgage is linked to housing occupancy conditions, determined according to the loan date. Ceiling resources, geographical location and number of occupants of housing are also part of the conditions.

Finally, the type of housing giving entitlement to the Zero Rate Loan is clearly defined, whether new or old with works.

Subscribe a free credit to equip yourself

Subscribe a free credit to equip yourself

Granted by the financial organizations but also by the merchants, the free credit is a consumption without interest loan .

Thanks to this credit free of charge, the consumer pays his purchases in monthly installments, usually over a short period of a few months. Appliances, toys, furniture, floor coverings, windows, bicycles are all goods financed through a promotional credit.

Many services are also accessible thanks to the free credit : it can be to settle in several times without expenses the services of a craftsman for example.

Car loan without interest

Car loan without interest

Some dealers offer to take out a free credit usually for 12 months for promotional purposes. An advantageous solution for the customer but also for the seller because the free credit encourages purchase .

It is particularly appreciated by people who do not have a personal contribution to buy a car in cash or who do not wish the whole of their vehicle with an auto loan with interests.

Holiday Credit 0%


Ideal for no more holidays even if at the lowest, this free credit is also a consumer credit at no cost . It is offered by many travel agencies and holiday centers. By booking several months in advance, the consumer pays his stay or his trip in monthly installments so that one month before the date of departure, the amount of the service is fully paid.