It sounds like there is a penalty clause for early repayment. This is intended to cover the loss of interest to the bank entailed by early repayment. It's probably in the documents you signed up to in the loan agreement. Check these out to make sure the bank is entitled to make the charge. Ask for a breakdown/explanation of it. The facility to make early repayments without penalty can be agreed prior to taking out a loan. In short, if its in the original agreement, and they are complying with these terms, there is probably little you can do but learn from the experience. You could try haggling, but I don't know if this ever has worked - other posters might know more about this.