On November 6, 2009, the State Duma of the Russian Federation at session has approved the bill providing a possibility to repay a loan, issued for interest, in advance not asking for bank’s permission, in the first reading. Amendments are brought in the second part of 810 article of the Civil code of the Russian Federation.
Authors of the bill suggest to provide citizens with the right to repay loans in advance, received for personal and household needs. This innovation does not apply to the credits, issued for business.
At present, the borrower can repay the whole sum of an interest-free loan in advance if other is not provided in the contract. The sum of the loan issued for interest, can be repaid in advance only if the creditor permits to do it.
In the explanatory note to the bill it is noticed that banks use as a restriction for the borrower to repay loans in advance such tools as: moratorium to repay loans in advance, penalties and payment limitation.
RIA Novosti
