Some
loans allow you to prepay part of the
principal early without penalty. Basic
flexible loans allows you to make weekly or
fortnightly payments while others permits
extra payments as and when you have extra
cash, thereby slashing your interest costs.
Most traditional loans don’t allow this.
You
should clarify and determine the terms and
conditions for such prepayment features,
notably:-
1. whether
or not you need to give notice for such
prepayment;
2. whether
or not there is a restriction in the number
or amount of prepayment;
3. whether
or not there is any fee or charges imposed
in the event of such prepayment.
