Personal Loan Prepayment: Boost Your Finances, Understand Credit Score Impact

• Prepaying personal loans saves significant interest and offers early debt freedom.
• Generally, early repayment does not negatively impact credit scores if EMIs were paid on time.
• A short credit history combined with early loan closure might temporarily lower your score due to fewer active accounts.
• Check for prepayment charges from banks/NBFCs and always read your loan agreement carefully.
• Prioritize prepaying loans with the highest interest rates for maximum financial benefit.

Why It Matters: Prepaying personal loans is wise for interest savings and peace of mind, usually positive for credit.