Is it reasonable for the guarantee company to charge liquidated damages for returning the car loan in advance?

Legal analysis: There are two situations: one is that when the loan institution signs a loan contract with the lender, there is an agreement on the collection of liquidated damages for repayment before the repayment period. It is clearly stipulated in the loan contract that the loan shall not be repaid in advance within half a year or one year, or how much liquidated damages shall be paid before the repayment period. In another case, when signing the loan contract, the borrower and the lender did not realize the agreement. Then at this time, lending institutions usually charge a corresponding proportion of liquidated damages in accordance with industry practices.

Legal basis: Article 585 of the Civil Code of People's Republic of China (PRC), the parties may agree that one party shall pay a certain amount of liquidated damages to the other party according to the breach of contract, or agree on the calculation method of the amount of damages for breach of contract. If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase the liquidated damages at the request of the parties; If the agreed liquidated damages are excessively higher than the losses caused, the people's court or arbitration institution may appropriately reduce them at the request of the parties. If the parties concerned pay liquidated damages for delayed performance, the breaching party shall also perform the debt after paying the liquidated damages.