Will repaying my personal loan early reduce the interest I pay and could the lender charge an early repayment fee?

13 Sept 2026, 14:27
Q A Reader Asker

Will repaying my personal loan early reduce the interest I pay and could the lender charge an early repayment fee?

A PoundWise Team Answered by

Paying off a personal loan early will usually reduce the interest charged for the remaining term, but the saving depends on your loan agreement and settlement figure. Your lender may be allowed to add a limited early-settlement charge or some interest, so ask for an official settlement quote before making a payment. Compare the total settlement figure with the remaining scheduled payments, and check whether making a partial overpayment has different terms. If anything is unclear, contact the lender or check its FCA-authorised status before deciding.

This Q&A is editorial content produced by the PoundWise team. It does not guarantee any individual outcome.
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