Early repayment fee
Cards & borrowingA charge applied when you pay off a loan earlier than agreed.
Overview
Some fixed-rate loans include early repayment charges to protect lender interest income.
The fee and conditions are set in the credit agreement.
Why it matters
- It can reduce the benefit of paying early.
- It affects the total cost of credit.
- Knowing the fee helps plan repayments.
FAQs
Do all loans have early repayment fees?
No. It depends on the lender and the loan terms.
Can I avoid early repayment fees?
Some lenders allow partial overpayments without fees. Check your agreement.
Related terms
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