Can anyone help me out with this - if one was to take out a personal loan for say €15,000 over a period of 60 months from one of our financial institutions, pay it back at the normal monthly rate for the first 6 months and then decide (after a windfall - one can only hope!) that one is in a position to repay the remaining amount of the loan:
- how much of a prepayment penalty would the lending institution seek to impose - 1 month / 6 month/ 1 year etc. worth of expected interest?
- would it be better to try and renegotiate the terms of the loan to reduce the length of repayment term to as short as possible so as to avoid any such penalty