Loan Prepayment
/ˈloʊn ˌpriːˈpeɪmənt/
Definitions
- (n.) The early repayment of all or part of a loan by the borrower before its scheduled maturity date.
The borrower executed a loan prepayment to reduce future interest payments.
Forms
- loan prepayment
- loan prepayments
Related terms
See also
Commentary
Loan prepayment often triggers specific contractual provisions such as prepayment penalties or fees designed to compensate the lender for early termination of interest income.
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.