Can I pay off a loan early?

Yes, if you can afford to, you can pay off a loan earlier. The benefit of this is that it can help save you money in interest repayments in the long run.

However, what might come as a surprise it that paying off a loan earlier than expected may mean you have to pay an early repayment charge (or something similar).

How much this charge is, and how it works varies from lender to lender, but you might find it’s approximately the equivalent to one or two months’ loan interest. So it’s definitely best to check with the individual loan company before you pay off the loan entirely.

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