What are my options for paying off a personal loan early?

Submitted by Horsemau5 t3_zzx8h3 in personalfinance

As the title states I took out a personal loan about 6 months ago to purchase a piece of equipment. Total principal left on the loan is sitting shy of $18,000. I have since sold the piece of equipment and have enough to pay the principal amount back but I am worried I will be slapped with fees for such a early payoff. What are my options and should I expect any fees associated with a early payoff?

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terabhaii t1_j2e3nur wrote

Hello. I don’t think there’s a rule that you must pay fees for early pay off, it’ll depend on your agreement with the lender. Does your loan agreement state any penalties or charges if the loan is paid off early?

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Aleyla t1_j2e3qvf wrote

Completely depends on your loan agreement. No one here will know.

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Horsemau5 OP t1_j2e4fnx wrote

Replying to terabhaii (#1,230,869)

From what I can tell after reading over the agreement multiple times it doesn't state anything about penalties for early payoff. Though it also doesn't say anything about it which concerns me.

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93195 t1_j2e811f wrote

Read your loan terms. While it might have a prepayment penalty, those tend to be pretty rare in the US.

Regardless, just call your lender and ask for a payoff amount. They’ll quote you how much that is, including accrued interest as of that day. Then pay that amount.

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