Personal loan, June 19 -- It is not unusual to borrow loan and wanting to repay it before its tenure is about to conclude. It could happen when your salary increases during the loan tenure or there is a windfall of cash. There could also be other reasons such as switching of loan to another lender or something else.

Although this is a routine thing to happen, investors be aware that this costs extra money. For instance, one may have to pay a flat prepayment penalty on outstanding personal loan which could be as high as 4 percent.

Additionally, lenders may not allow borrowers to prepay the loan until after payment of first few EMIs.

If you want to prepay your personal loan, you must be mindful of the following points.

1. Typically, a h...