Early Repayment
/ˈɜːrli rɪˈpeɪmənt/
Definitions
- (n.) The repayment of a loan or debt before its scheduled due date.
The borrower made an early repayment to reduce interest costs.
- (n.) A payment made before the due date usually involving penalties or fees specified in the loan agreement.
The early repayment triggered a prepayment penalty under the contract.
Related terms
See also
Commentary
In drafting, specify whether early repayment is permitted and any applicable penalties or conditions to avoid disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.