Banking
Can I repay a personal loan early?
Links marked * are commercial or go to our partner sites, which share our operator. Third-party companies may pay us commission. How we make money.
In short: Yes on most regulated UK loans, but lenders may charge up to two months' interest as an early settlement fee.
Content updated:
Request a settlement figure before lump-sum repayment.
Early repayment cuts total interest — often worthwhile despite fees.
Unregulated loans may have harsher penalties — read terms.
See compare personal loans guide.
Primary source: moneyhelper.org.uk/en/everyday-money/credit/personal-loans
Part of our Banking & current accounts
This quick answer sits inside our wider banking & current accounts hub — with sub-guides, calculators and step-by-step explainers on the same topic.
Read the full banking & current accounts guide →