Advance payments
During the repayment period, you can transfer extra amounts in addition to your regular repayment at any time. You can make advance repayments without any restrictions or with any fees applied.
Note: An advance repayment does not releases you from the obligation to make your regular repayment.
As a rule of thumb, the amount of the advance payment directly reduces the principal balance of the loan. We are entitled to deduct the amount against any outstanding, overdue debt by the client and reduce the principal balance only by the remaining amount. Any advance repayment is accounted on the day the amount is received to our bank account.
Advance repayment is only possible through a separate bank transfer but it may go to the same bank account (bank number 10032000-01800126 of the Student Loan Centre). When filling out your transfer order, always write “advance repayment” and your 8-digit contract number in the comment field.
Prepayment
If an amount exceeding the amount of the regular repayment is paid not in accordance with the rules relevant to advance repayment, i.e. the words “advance repayment” are missing in front of the contract number, the excess amount is considered as prepayment and is primarily accounted for fees and interest and the principal balance is only reduced by the remaining amount.
By prepayment you also pay your installments due at a later time. It means that the specific repayment amount is divided by the amount of the regular repayment and that indicates how long (how many months) a forbearance is provided by the current repayment before your obligation to pay your repayment installments resumes.
After this forbearance, you continue to be responsible for transferring the monthly repayment amount to our bank account.
Prepayment may come in handy for someone with irregular income and when transferring the regular repayment by the deadline each month causes some difficulty.
Example: if your regular repayment is HUF 10,000 and transfer HUF 100,000 as prepayment, your outstanding debt is reduced in the order of fees, interest and principal and you are exempted from the obligation of regular repayment for a period of 10 months. If, however, you transfer this HUF 100,000 amount as “advance repayment”, it directly reduces your principal balance but it does not exempt you from making your regular repayments.
