Loan Repayment FAQ: How does early loan payment work?

CEO loans do not impose prepayment penalties or clauses dictating how early payments are allocated. By making an early payment, you decrease the principal amount on which future interest calculations are based. As a result, you will pay less interest over the duration of the loan. Additionally, early payments effectively reduce the number of days the loan remains outstanding, thereby decreasing the overall interest that would have been paid if the early payment had not been made.

It is important to note that the additional payment will cover the principal balance and the interest accrued since the previous payment. Our interest-based loans accrue daily interest, also known as interest per diem. When an early loan payment is made, the interest per diem calculation determines the amount of interest accumulating for each day between the last payment date and the early payment date.

Borrowers can make extra payments on their loans anytime through their Happy Mango account. For more information on the different payment options, please refer to this article - Loan Repayment FAQ: How to manage your loans on Happy Mango?

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