Answer:
Prepayment penalty
Step-by-step explanation:
A prepayment penalty is charged when a borrower significantly writes down or offset his loan earlier than as planned in the loan agreement , especially within the first five year of taking the loan. Some lenders restrict repayment to a certain value before you can be fined.It serves as a form of security on the lenders interest income.
It is calculated on the outstanding loan balance which mean the longer you owe , the less your penalty and vice versa.
On the side of the borrower , accepting the clause in the loan agreement always come with a lower interest on loan