Can bank loan interest be reduced or exempted due to personal serious illness?

No, the bank will not exempt you from interest. Only penalty interest and late payment fees can be applied for exemption.

1. If you are short of funds in the current period or in the short term and still cannot pay, you can take the initiative to call the bank and request a grace period for repayment. The bank has this business, which is professionally called "extension", although the extension will also be recorded. A bad record, but "extending" the loan in the future is regarded as a bad record, which shows that you have a good willingness to repay, which is different from the behavior of "malicious default".

2. If there are changes in the family or difficulties, and it is difficult to continue the mortgage loan, the best way is to sell the property as soon as possible, use part of the house payment as loan repayment, and keep the remainder for personal use. In this way, the remaining house payment will be much more than that obtained by the bank's auction of the property, and it will not be included in the bank's blacklist and will not affect future loan applications.

What are the provisions for interest exemption and exemption on bank loans? In these cases, the interest can be reduced or exempted

As we all know, after applying for a loan at the bank, the bank will inform the borrower of the specific loan interest rate. The borrower needs to repay the loan interest based on the loan interest rate. Unless there are special circumstances, the loan interest will not be reduced. What are the provisions for bank loan interest exemption? In these cases, loan interest can be exempted!

What are the regulations for bank loan interest exemption?

1. Interest rate discount

If the borrower wants to apply for a loan interest rate discount, he generally needs to become a VIP customer of the bank or a first-time home buyer. Banks are essentially financial institutions that rely on loan interest rates to make profits. If the borrower does not have any cooperative relationship with the bank itself, the bank can only earn limited profits and will naturally not exempt the borrower from interest.

But if the borrower has long-term, large-amount certificates of deposit in the bank, or has the habit of purchasing Shendai Bank financial management or funds for a long time, he can become a VIP customer of the bank. Whether you are applying for a loan or buying your first home, you can basically get a loan interest rate discount of more than 10%.

2. Overdue loan

If the borrower's loan is overdue, he or she would like to apply to the bank for a reduction or exemption of some loan interest. According to regulations, no unit has the right to exempt loans, whether it is principal or interest. But there are more detailed regulations. If the borrower's loan is overdue due to some third-party force majeure factors, the interest can be reduced or exempted and the repayment time can be extended as appropriate.

So-called third-party force majeure factors, such as natural and man-made disasters, serious illness, bankruptcy, accidents, etc. Under these circumstances, it is entirely possible for the borrower to apply to the bank for some interest relief or extension of the repayment period.

The above is the sharing of relevant content on the "Regulations on Bank Loan Interest Reduction and Exemption". I hope it can help everyone!

How to write an application for bank exemption

Sample application for credit card exemption:

I (xx) used our bank’s credit card to spend xx yuan in xxx, and then Unable to repay credit card overdraft due to unemployment and no other source of income.

Now I am willing to borrow money from relatives and friends to repay the entire principal, but due to limited ability, I am unable to repay the entire debt. Now I sincerely request the bank leaders to consider my actual situation and exempt some of the overdue interest and late payment fees.

Please approve the above!

XXX

Extended information:

Loan overdue usually means that after the loan expires, the borrower Without going through the relevant extension or re-loan procedures, the loan principal and interest are not returned to the bank that issued the loan according to the loan time limit stipulated in the loan contract, thus causing the loan to exceed the agreed time limit.

In reality, whether it is an enterprise or an individual, it is actually possible for a loan to be overdue. In such a case, it is natural to bear overdue liability to the bank or financial institution, which usually means paying liquidated damages.

Non-payment after a credit card overdraft is a breach of contract. The bank can require the cardholder to repay the principal as well as overdue interest, late payment fees, over-limit fees, etc.; if the bank files a lawsuit and wins, the cardholder will There are also legal costs to bear.

Secondly, if the cardholder maliciously overdrafts a certain amount for the purpose of illegal possession and fails to repay overdue, it constitutes a credit card crime and he will also bear criminal liability.

Under what circumstances can banks waive loan interest?

Usually, if the enterprise is bankrupt or unable to repay its bank debt for other reasons, the loan principal and interest can be exempted and exempted with approval from superiors.

1. Article 49 of the "Interim Regulations on the Administration of the Bank of China" stipulates that "without the approval of the State Council, no unit has the right to exempt loans." The loan referred to here includes not only the loan principal, but also the loan interest.

Therefore, unless otherwise provided by regulations and policies, no unit (including financial institutions) may waive loan principal, waive the collection of loans and interest, or reduce or exempt loan interest.

2. According to Article 42 of the "Interim Regulations of the People's Republic of China and the Bank of China", "Each specialized bank head office has certain interest rate floating rights", it belongs to the interest rate floating rights of the specialized bank head offices. Questions within the company can be decided by itself.

Extended information

Loan interest calculation formula

(1) The interest rate conversion formula for RMB business is (note: common for deposits and loans):

1. Daily interest rate (0/000) = annual interest rate ()÷360 = monthly interest rate (‰)÷30

2. Monthly interest rate (‰) = annual interest rate ()÷12

(2) Banks can calculate interest using the cumulative interest calculation method and the transaction-by-transaction interest calculation method.

1. The accumulation interest calculation method is based on the daily accumulated account balance based on the actual number of days, and the interest is calculated by multiplying the accumulated accumulation number by the daily interest rate. The interest accrual formula is:

Interest = cumulative interest accrual amount × daily interest rate, where cumulative interest accrual amount = total daily balance.

2. The interest calculation method calculates interest one by one according to the predetermined interest calculation formula: interest = principal × interest rate For years (months), the interest calculation formula is:

(1) Interest = principal × number of years (months) × interest rate per year (months)

The interest calculation period has a whole year If there are fractional days in a month, the interest calculation formula is:

(2) Interest = principal × number of years (months) × annual (month) interest rate principal × number of fractional days × daily interest rate

At the same time, the bank can choose to convert all interest accrual periods into actual days to calculate interest, that is, each year is 365 days (366 days in leap years), and each month is the actual number of days in the Gregorian calendar in that month. The interest calculation formula is:

(3) Interest = principal × actual number of days × daily interest rate

These three calculation formulas are essentially the same, but since there are only 360 days in a year in interest rate conversion, when the actual calculation is based on the daily interest rate , a year will be calculated as 365 days, and the result will be slightly biased. Which formula is used to calculate the specific formula? The central bank gives financial institutions the right to choose independently. Therefore, the parties and the financial institution can agree on this in the contract.

(3) Compound interest: Compound interest means charging interest at a certain rate. According to the regulations of the central bank, if the borrower fails to repay the interest within the time stipulated in the contract, compound interest will be charged.

(4) Penalty interest: If the lender fails to repay the bank loan within the prescribed time limit, the penalty interest imposed on the defaulter by the bank according to the contract signed with the party concerned is called bank penalty interest.

(5) Overdue loan liquidated damages: The nature is the same as penalty interest, and it is a punitive measure against the party who defaults on the contract.