Is early loan repayment good for you?

Early loan repayment can be beneficial as it reduces the total interest paid over the loan tenure and can improve your financial stability. By clearing the debt ahead of schedule, you free up resources for some other investments or operational needs. Some loans may have prepayment penalties/charges which could offset the savings from reduced interest. Early repayment as well may temporarily affect your credit score as it changes your credit mix and history. It is very important to review the terms of your loan agreement before making an early repayment and to ensure that it aligns with your broader financial goals.