lainanlyhennys
Lainanlyhennys, which translates to "loan shortening" or "loan prepayment" in English, refers to the practice of paying off a loan earlier than the originally scheduled repayment period. This can involve making lump-sum payments in addition to regular installments or paying off the entire remaining balance at once. The primary motivations for loan shortening are typically to reduce the total amount of interest paid over the life of the loan and to become debt-free sooner.
When a borrower makes a loan shortening payment, the extra amount is usually applied directly to the
Most loan agreements in Finland and many other jurisdictions allow for loan shortening without penalty, although