FT MarketWatch

Prepayment privilege

A clause in some loans allowing the borrower to pay off the Debt prior to its Due date without incurring a Penalty. This is an advantage for a borrower when Interest rates are falling, since he/she can pay off the existing Loan and then refinance at a more favorable rate. also called Prior redemption privilege.

Related Terms: 17 Borrow, Call, Debt, Due date, Finance, FIN, Interest, Inc., Interest rate, ITS, Loan, Leg, Low, Owe, Penalty, Prior redemption privilege, Ring
Other Related Pages: Category: Lending_and_Credit Starting With: P
Semi Related Terms: 648 CLICK HERE TO VIEW
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