It all comes down to your loan contract as to how excess payments are applied, how that impacts the remainder of the contract, whether there is a penalty for prepayment, etc..
Allowing Customers to Prepay Consumer Loans?
Are there regulations or risk issues allowing customers to prepay consumer loans? I know that there is a risk of extecsions for installment loans, but need to know how many months in advance a customer can prepay installments rather than adding excess payment amount to principal?
First published on 01/03/2021