Your Right to Early Repayment
For consumer loans in Germany, you have the right under §500 BGB to repay the loan early at any time, in whole or in part. The bank cannot refuse this but may charge compensation for lost interest.
Legal Regulations in Germany
- Right to early repayment for consumer loans
- Max. fee: 1% (over 12 months) / 0.5% (under 12 months)
- Mortgages: Special termination right after 10 years
When Is Early Repayment Worthwhile?
- Inheritance or bonus: When you unexpectedly receive money
- Property sale: When selling your property
- Better conditions: When refinancing is cheaper
- Short remaining term: When the fee is low
Conclusion
Early loan repayment can save you money - but must be calculated carefully. For consumer loans, the risk is manageable due to the legal cap on fees.