Loan repayment means paying back the amount taken from the funding partner. This paying-back process is usually done via monthly payments over the stipulated period of your loan. It includes paying back the principal amount (the original sum of money borrowed) and the interest charged on it. You also have the option to pay your loan before the completion of its tenure as a lump-sum amount. However, you should consult your funding partner before making an advance payment of your loan as you may have to pay an early repayment fee often termed a prepayment penalty.

If you fail to pay your monthly payments on time it can affect your credit score and financial position and can even incur bad debt on you. Remember, your loan repayment history is visible to banks and financial institutions as to whether you have paid your loan on time or not.

If you think you cannot make the payments on time then you should consult your lender and financial advisor so that you can renegotiate.