Why do banks sometimes have a prepayment pentaly,dont you think this is unfair or license to steal?

Answer 1

Mate, the entire money system based on debt and fiat currency is based on an actual, literal, legal license to steal. The license was printed by your government's Treasury Department, and it bestows an exclusive right to counterfeit money on the banks and authorizes them to lend their currency (which they can print in any amount without doing any work to earn it) to borrowers and demand that interest be paid as the principal is repaid.

Although some borrowers will be able to clear themselves of debt by hard work or by clever trading, whereby they capture a sufficient amount of someone else's loan, it is IMPOSSIBLE for the nation as a whole to do so. As a general rule, people must keep sliding deeper and deeper into legal endebtedness to the bankers, and, when inevitably a great many people can't pay up (because there isn't enough money in circulation to satisfy the bankers' demands), the banks will begin foreclosing on properties. Having done no work whatsoever, the bankers will end up with nearly all the real and tangible property of the entire nation.

Now that's what I call STEALING! Al Capone and Jesse James were pikers compared to the Jewish bankers who are looting the world of its wealth today. Although what they are doing is legal, that doesn't mean it is moral. What it really means is that your government has been subverted by the bankers that it has been induced to treason against the republic, for which it once stood but for whom it stands no more, and has become, instead, an accomplice to the bankers' larceny.

Do you see all the answers from people who claim the bankers are justified in penalizing you for early payoff in order to get a minimum amount of profit off you for their "service"? Well, forget it. Those answers are all nonsense. The banks are ripping you off. They don't deserve that profit because they did no work to earn any profit. Bankers do not work; i.e., they do not create or increase the amount of value in the world. All they do is two things:

1. They monitor account balances. When was the last time anyone offered to pay you just because you kept notes on the balance in your checking account?

2. They arrange to stand between any two people who wish to trade and, in effect, tax their faith in each other's good word.

Banking in an ambit of monetized debt is fraud, and it is nothing but fraud. Complicity in that fraud by government is treason, and it is nothing but treason.

Answer 2

They aren't stealing. They figure how much profit they'll make from your loan. If you pay them off early, they don't make that profit. You would have signed something stating that you understand that there is a pre-payment penalty, so it's not stealing.
Usually, the banks that would do this would be banks lending to prime customers. The interest rate is low, so the profit margin is already pretty tight.

Answer 3

Because they calculate their profit of your loan based on your monthly payments and the interest included. They do this when they decide to approve or deny your loan.

If you pay it off early, they are not making that profit off of you. So they incorporate the prepayment penalty to ensure they stay above the grey. Otherwise, they would just be handing out loans for free.

Answer 4

They charge a prepayment penalty on long term loans because of the failure to receive the monetary return if the loan contract were paid according to the terms.

Answer 5

Banks wants to secure their investments, remember they dont gave you money for nothing, that is their business lend money. Normally the penalties are for secure at least their earnings, for example if you borrow 200,000 they disclose to you that you can't change the loan for the next 2-3 years, so they can recover their interest.

Answer 6

its the way of the world, get used to it