In the case of a personal loan, the two sides can cancel, ie the borrower and the bank can cancel a personal loan. As a customer, you can terminate the loan half a year after the loan has been paid out, with the normal notice period of three months. This would also eliminate the so-called prepayment decision.
What should you watch out for if you want to cancel a personal loan?
But if the borrower canceled the personal loan, the processing fee would also be forfeited, so that the bank no longer repays it. The opposite is the case, because if you cancel your personal loan as a customer, you usually have to pay additional fees for processing the cancellation. However, there has recently been a new guideline that states that the borrower can generally terminate at any time and without notice.
What about bank termination?
If the bank wants to cancel a personal loan, it is more problematic. Because at the same time, various conditions must be met that the bank may terminate at all: the borrower must be in arrears or in arrears with two successive loan installments, and the arrears in the installments must be at least five percent over a period of three years or ten percent with a duration of up to three years, the bank must also have sent a third reminder to the customer, in which a termination was threatened, the consequences of the termination were made known, and there must also be a period of two weeks then and only then can a bank terminate the loan on its part.
What is legally a loan termination?
A loan termination is a unilateral declaration of intent by the borrower or by the lender that they want to end the loan contract. Even if there is no right of termination, this contract can be canceled if both parties agree. The legal situation at the time of the termination always applies to the termination. As soon as the loan is canceled, the borrower is obliged to repay the remaining debt immediately. He can pay it from his own funds or by repaying a loan from another bank.