Skip to content

Allowing Customers to Prepay Consumer Loans?

Answered by: 

Question: 
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?
Answer: 

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..

First published on 01/03/2021

Filed under: 
Filed under lending as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics