One-time repayments are often encountered during loan or credit card repayments. One-time repayment is the manner in which the borrower repays all remaining principal and interest once and for all before the maturity of the loan. So, do one-time repayments require interest? From different perspectives, the following conclusions are drawn。

Do you want interest on a one-time payment

First, consideration needs to be given to whether there is a one-time repayment agreement in the borrowing contract. In some cases, the borrowing contract may provide for the borrower to choose, under certain conditions, a one-time repayment and clarify the method of calculating the amount of repayment. If there is an express agreement in the loan contract that a one-time repayment will not require further interest payment, then the borrower will not need to pay interest on a one-time repayment。

Second, a one-time repayment should make a reasonable calculation of interest. In the absence of express agreement, the borrower may need to continue to pay a portion of interest. This is because interest is usually calculated on the basis of the duration of the loan and the repayment. In the case of one-time repayments, the period of the loan ended earlier, and therefore the remaining outstanding interest would still need to be paid on the basis of interest in the borrowing contract。

In addition, the time value of interest needs to be taken into account. Interest is a form of reimbursement paid to the borrower for the use of the loan funds to compensate the borrower for loss of time value. Even if the borrower made a one-time payment, the lender would still need to obtain the time value of the loan they released. Therefore, even if the borrower made an advance one-time payment, it would be necessary to pay outstanding interest。

In summary, the need for a one-time repayment of interest depends on whether the repayment modalities in that case and the method of calculating interest are expressly agreed upon in the borrowing contract. In the absence of a clear agreement, the remaining outstanding interest is usually still required. This is because interest is a way of compensating the lender for the loss of time value, which still exists even if the loan period ends earlier。