Early Repayment
| No: NA | Date(g): 1/8/2015 | Date(h): 16/10/1436 | Status: In-Force |
Translated Document
Financing regulations, their implementing regulations, and consumer finance controls ensure that beneficiaries of financing products can expedite the repayment of the remaining loan amount at any time, except during the period of prohibition on early repayment for real estate financing if specified in the contract, provided that the prohibition period does not exceed two years from the date of contract execution. This early repayment is made without incurring the term cost for the remaining period. However, the financing entity is entitled to receive compensation from the beneficiary for the following:
| A. | Reinvestment Cost, this should not exceed the term cost for the three months following the repayment, calculated based on the declining balance. |
| B. | Payments Made to a Third Party Due to the Financing Contract, these must meet the following conditions: |
| 1. | Payments must have been paid to a third party and not compensated by the beneficiary to the financing entity. |
| 2. | These payments must be documented in the financing file. |
| 3. | The payments cannot be refunded from the third party. |
| 4. | Compensation must be calculated based on the remaining term of the financing contract. |