For loans, write detailed information about the termination and a free pattern of termination to terminate the loan. Given the low level of interest rates, many bank customers simply want to call the loan early to switch to another bank. Just use our sample letter as a template.
Termination Letters Credit | terminations
The following section explains what has to be considered when declaring a loan and what time limits must be observed for each type of loan. At the bottom of the picture you can see a sample text for the cancellation of a loan. The period of notice for loans Depending on the type of loan agreement, different periods may apply:
Overdraft facilities This form of credit can be terminated at any time. Installment Loan After a period of 6 months, it can be terminated with an announcement period of 3 months (§ 489 Abs. 1 BGB). The borrower can terminate the installment loan at any time without notice. It should be noted, however, that in the event of premature termination, credit institutions claim a prepayment penalty.
For loans with a residual term of more than 12 months, it is required that the remuneration should not exceed 1% of the balance, for loans with a residual duration of less than 12 months, 0.5% of the balance. Credit without fixed interest rate (eg variable credit) This form of credit can be terminated with a notice period of 3 weeks (§ 489 Abs. 2 BGB).
Fixed Rate Loan
The Borrower may terminate a fixed rate Loan. Loan in the following two cases (§489 BGB): If the fixed interest rate expires, but with a notice period of 1 month. The deadline must be effective on the day on which the fixed interest period expires. Ten years after disbursement of the loan with a period of 6 months.
In the concluded contract, the exact term of the individual contract can be reconstructed. However, the credit agreement may also be terminated by the principal bank if: the borrower with at least two consecutive monthly installments in full or in part (“at least 10% of the total amount”) is in arrears, the principal bank sets the borrower a term of payment and the maturity of the borrower entire remaining claim in case of non-payment.
Cancellation of a credit pattern “For the application for supplementary performance, simply create a letter with the cancellation generator. Download Termination letter Example: Street + No. Ladies and Gentlemen, I finish my appointment with you on the… with the Number XXXXXXXX, approximately…. Termination Date If this is not possible, I will terminate the contract as soon as possible.