Can I pay off a personal loan early?

The question 'Can I repay a personal loan early?' was answered and was about personal loan.

In most cases it is possible to repay a personal loan early. However, this is not made possible by every loan provider, and it is not always free. Many lenders link the cost of prepayment to the past term. When you take out a personal loan, it is good to know whether early repayment is allowed. An additional question is whether it makes sense to repay a personal loan early.

In general, it can be beneficial to repay a loan early. You usually pay more interest for the loan than you receive on the balance in the savings account. However, with some loans, a penalty will be charged for early repayment. It is then important to check how high this fine is. So the pros and cons of an early repayment depend on the terms of the loan.

en