Can the borrower repay early? What is an early repayment charge?
Yes, it is possible. However, the bank encourages borrowers to stay until the end of the lock-in period to avoid penalty. If the borrower prepays early in part or in full during the locked-in period, a charge of 3% of the prepayment amount plus an administrative fee of $10 or ៛40,000 is levied.
After the lock-in period, the borrower may settle mortgage loan by giving notice to the bank one month in advance for partial settlement, and three months in advance for full settlement, subject to $10 or KHR40,000 administrative fee. Lock-in period is typically 3 years, but it depends on the individual case.
After partial principal prepayment, the monthly installment EMI is re-calculated (reduced), while the loan tenor is kept unchanged. Alternatively, customers can choose to keep EMI unchanged and reduce the tenor instead.