Question about early repayment and clause in the contract

Actually, I didn’t know about the 1%, I understand that now, although I don’t know what the second clause about the interest costs is supposed to mean.

Additionally, the point was just raised here that there is no special repayment, and I would like to understand the difference...

So, do you have a special repayment in the contract or not?

I can’t imagine that you can arbitrarily repay early against payment of 1% prepayment penalty without the bank’s approval.

I am writing again what is stated on the cover sheet of the financing:

Here again in the exact wording:
Early Repayment
(You have the right to repay the loan in full or in part at any time early. The lender is entitled to compensation in case of early repayment.)

Yes
A prepayment penalty of 1% on the early repaid loan amount will be charged, and in the case of a remaining term of less than 12 months, 0.5% of the early repaid loan amount.

Interpreting fragments of a contract without knowing the entire document is not very useful. We do not know any remaining terms, interest rates, contract references, standard form or individual contract, etc. You have already posted quite different parts of the contract above. But maybe you are lucky and there is actually a good provision for you, even if the bank just agreed to it incorrectly.

plus the lost interest?

but that is not a special repayment

I suspect this 2nd component is related to the fact that

- with very low interest rates (below 1%) and with a remaining term just over one year, or
- with the agreement of a free early repayment option and a short remaining term

this 1% prepayment fee could be higher than the actually payable interest. To prevent this, the 2nd clause was added and the prepayment fee was additionally limited to the maximum payable interest.

As others have mentioned, this is a (permitted) partial/full termination with prepayment penalty and has nothing to do with a free early repayment option.

If it is expected that the loan will be completely repaid soon, this may make more sense than the early repayment. However, there are probably other, presumably cheaper options (variable loan).
Otherwise, a free early repayment option is probably the better choice. To my knowledge, a possible early repayment also leads to a reduction of the prepayment fee.

okay, the only real difference for me as a customer is then just that I pay 1% of the repaid amount here and with a truly free special repayment probably nothing - that's primarily what it's about?