About early loan settlements

If your financial situation changes and you want to settle your debt earlier than your original term, your lender should be able to accommodate you. However, you may have to pay an additional redemption fee. A settlement statement provided by your lender will outline the terms of your early loan settlement, including the amount of your redemption fee.

The amount of interest you would have paid if the loan had reached the end of its full term is taken into account and you may have to pay for some of this interest. Depending on how early you decided to settle the loan ahead of time, this could mean an interest charge of several months. The terms of your loan agreement will specify whether or not that amount of interest will still apply. In any case, early redemption fees vary depending on the loan company and the original terms and conditions you agreed to when taking out your loan.