You have the option to settle off your outstanding loan balances before the end of tenure, subject to terms and conditions of your personal loan. Tips: A personal loan is usually calculated on a flat rate basis; therefore, a partial settlement is not advisable. If you have double paid your monthly installment for the month, the bank will deem it as an “Advance Payment”, which will not reduce your interest payment and the principal amount for the month. It is important that you inform the bank in written notice prior to your personal loan early settlement. An Early Settlement fee may or may not be charged, depending on the personal loan agreement.