prepayment penalties

A form of prepayment penalty — An additional fee charged for paying off part of or the entirety of a loan ahead of the scheduled due date in order to compensate for the loss of interest income suffered by the creditor in such case.

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Meanings

noun
  1. pluralplural of prepayment penalty
Cite this entry
APA

prepayment penalties. (n.d.). In WatkinsX Dictionary. Retrieved November 4, 2026, from https://dictionary.watkinsx.com/word/prepayment%20penalties

MLA

“prepayment penalties.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/prepayment%20penalties. Accessed November 4, 2026.

Chicago

WatkinsX Dictionary, s.v. “prepayment penalties,” accessed November 4, 2026, https://dictionary.watkinsx.com/word/prepayment%20penalties.

Source: prepayment penalties on Wiktionary, CC BY-SA 4.0.