New Delhi, Sept. 12 -- Prepaying a loan can reduce outstanding debt and save interest. But does closing a loan early make someone a better borrower, and is prepayment always the best way to manage debt?

While it is a given that prepayment offers financial benefits, lenders also consider repayment history, financial discipline and the ability to meet obligations consistently. In short, long-term financial habits matter more than a single early loan closure.

While early repayment can offer clear financial benefits, lenders assess borrowers holistically. They consider repayment history, financial discipline and the ability to meet obligations consistently over time. Therefore, long-term 'financial habits' matter more than a single decision...