New Delhi, Feb. 7 -- Personal loans are opted for by those who want funds for diverse needs without the need for collateral. While getting a personal loan, borrowers mostly look for interest rates, EMI payments, and the tenure of the loan to estimate how it would impact their finances. Keeping these points in mind helps the borrowers fulfil one of the most significant responsibilities, which is paying the loan on time.

In order to save interest costs and EMI payments over time, some borrowers prefer to pay their loan amount before the due date.

When you pay off your part or the entire loan amount early or before the due date, it is called loan pre-payment. However, some banks may levy a prepayment fee over clearing your dues early. This...