Loan providers must allow you to pay back a personal loan in full, but this can come with an early repayment charge of around 1 to 2 months' interest. Any fees and how they are calculated should be set out in your loan information and agreement, so you know what to expect if you repay early.
By law, almost everyone who took out loans from February 2011 onwards can make partial or full early settlements of up to £8,000 per year before being hit with penalty fees.
If there's more than a year left on the loan agreement, once more than £8,000 has been paid off, the maximum penalty charge that can be levied is 1% of the amount being repaid early.
If that kind of overpayment is made in the final year of the credit agreement, the penalty cannot exceed 0.5%.
Anyone who took out a loan prior to the introduction of the Consumer Credit Directive is subject to slightly different rules.
Overpayments on loans made between June 2005 and February 2011 are subject to penalties of no more than two months' interest.