# How to Prepay a Loan Account

This functionality makes it easy to prepay a loan account by paying off the entire amount and closing the loan account in one single step.

### To prepay the loan for a client:

To prepay a loan for a client, select the client. Click the **General** tab.&#x20;

1. Click the loan account for which the client wants to prepay the balance.
2. Click **Prepay Loan** from the Action Bar to see the following page with the payoff amount pre-populated summing up the total amount of principal and interest to pay of the loan as of that date.&#x20;
3. Enter the **Transaction Date, Transaction Amount, Payment Type** (mandatory fields) and **Note** (optional).&#x20;
4. Click **Submit**. This loan status will now be Closed paying off the amount due for principal and interest.&#x20;

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