The Debt Panel: ‘Will I be penalised for paying off a car loan early?’ – The National

The Debt Panel: ‘Will I be penalised for paying off a car loan early?’ – The National

I am halfway through a four-year car loan of Dh50,000 ($13,614) that I took out in 2021. I haven’t missed any instalments but am now in a position to pay off the loan in full.

However, before I do this, I wanted to find out if there would be any penalty imposed for paying the loan off two years early.

I am also concerned about rising interest rates and if this will affect my monthly car payments for the next two years if I continue to pay it off — or is it a fixed rate from the date of the start of the loan?