Early loan repayment: acceptance recommended regardless of amount, regulator clarifies
The Bank of Russia recommends that credit institutions, microfinance organisations and other lenders accept early repayments of a consumer loan even if the borrower pays back an amount less than that indicated in their notice of early repayment. This follows from the Bank of Russia's information letter.
Borrowers are now having to grapple with banks and other lenders rejecting acceptance of early loan repayments in cases the repayment amount is less than that specified in a notice of early repayment, a document the borrower is obliged to submit to the lender under law. The Bank of Russia views non-acceptance of such early repayments as unfair. Lenders should accept partial loan repayment inasmuch as they have been given notice of this. They should also provide to the borrower an updated schedule of payments of the outstanding amount.
In cases the early repayment has resulted in a changed total cost of credit (TCC), the lender should advise the borrower to that effect and provide an updated TCC. The Bank of Russia further recommends that lenders provide, in advance, a debt and interest estimate as of the planned early loan repayment date.