Early repayment occurs when a borrower pays off a loan before its scheduled end date, often to reduce long-term interest costs. Many loans, such as mortgages, allow early repayment, though some may charge fees to compensate for the lost interest. Borrowers choose early repayment to gain financial freedom sooner or save on interest charges. However, it’s important to check if an early repayment fee applies, as these charges can offset potential savings and vary depending on the loan type. Hence, it is always advisable to have a thorough look through each and every detail before applying for a loan.