Can I repay my loan early without a fee?
Yes — and after the first year the bank cannot charge you anything. This is one of the most underused consumer rights in Bulgaria. On a mortgage taken by an individual: if you repay early during the first year after drawdown, the bank may charge a fee of up to 1% of the amount repaid early. Once the first year has passed, however, no fee may be charged at all — under any circumstances. For a consumer loan the rule differs: compensation is capped at 1% of the amount repaid early where more than 1 year of the term remains, and at 0.5% where less than a year remains. The rules sit in the Consumer Credit Act and the Act on Credits for Immovable Property, and bind every bank on the market.
📋 The rules
- Mortgage, after the first year: 0% fee
- Mortgage, during the first year: at most 1%
- Consumer loan: up to 1% if over 1 year remains
- Consumer loan: up to 0.5% if under 1 year remains
- The rules bind all banks and financial institutions
🔓 Exceptions
- The rules cover loans to individuals (consumers), not corporate borrowing
- Partial early repayment follows the same regime as repaying in full
- Refinancing with another bank is also early repayment — the same rules apply
⚠️ Penalties & fines
A fee charged in breach of these rules is not owed — you can demand it back. If the bank refuses, file an objection with the bank, then a complaint with the central bank and/or the Consumer Protection Commission; the dispute can also go to a conciliation commission. Watch for disguised charges: a "management fee", "administrative fee" or "valuation" levied precisely because you repaid early is the same thing in substance and can be challenged. Before refinancing, ask for a written settlement statement listing every sum — it is your best evidence if it comes to a dispute.
📎 Official sources
- lex.bg · Act on Credits for Immovable Property to Consumers →
- lex.bg · Consumer Credit Act →
- Consumer Protection Commission →
❓ Frequently asked
Is there a fee for repaying a mortgage early?
Only during the first year after drawdown, and then at most 1% of the amount repaid early. Once the first year has passed, the bank cannot charge any fee at all, under any circumstances.
What about a consumer loan?
Compensation is capped at 1% of the amount repaid early where more than a year of the term remains, and at 0.5% where less than a year remains. This binds every lender on the market.
Can I repay just part of the loan?
Yes. Partial early repayment follows the same regime as repaying in full — the same caps on the fee apply, and either your instalment or the term is recalculated, as you choose.
What if I refinance with another bank?
Refinancing means repaying the old loan early, so the same fee rules apply. After the first year the old bank cannot charge you for it.
The bank charged me a fee — what do I do?
A fee charged in breach of the law is not owed and you can demand it back. Object to the bank, and on refusal complain to the central bank and the Consumer Protection Commission. Keep the written settlement statement.
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