KfW124 not fully callable?

Hello everyone,

In my financing, a buffer of about €20,000 is planned. This is realized through KFW124.

Due to very intensive and detailed preliminary work, I hope not to have to fully use this money. But what happens if it "remains unused"? Can I then use it as an early repayment, for example for my 1A loan (different bank, worse interest rate), or apply it to my KfW153 (same bank)?

My bank advisor said that this would then result in a partial termination of the 124 with the corresponding prepayment penalty. But that can’t be the case, can it? Of course, my banker offers me a loan from his own institution, which I could then repay accordingly, but at significantly worse interest rates...

Best regards, Christian

Hello

well, then you didn’t get a "capable" financier after all

Never mind. I would advise you to draw down the money completely and repay the expensive first-class loan. I would also find it surprising if there were any prepayment penalties for the 124 loan. After all, you can make special repayments on this program at any time free of charge. So it corresponds to the same principle.

The only critical point I see is the interim drawdown. Can you draw a "flat rate" without providing invoices? Usually, 10-20k is possible.....

But it depends on the bank

Hello,

to my knowledge, the disbursement of KFW loans is earmarked (so you have to prove that the money you have drawn has been used accordingly). Therefore, I don't think you can use it for a special repayment. If I were you, I would first use up the KFW loan and then the bank loan; if there is still some of the bank loan left, you can have it paid out to you and use it for a special repayment.