Glossary
Welcome to our glossary section.
If you're looking for the definition of a particular finance term or phrase, you can look it up here in our loans glossary. If the term or phrase you're looking for isn't listed, please let us know and we'll make sure it gets included.
Redemption Penalty
A redemption penalty is a fee charged to borrowers by credit institutions in the event that the borrower decides to change lender part way through their credit agreement. Consumers should be aware that if a redemption penalty were applicable, it would always be clearly stated within the terms of the credit agreement.
