Can I pay off my TARGOBANK loan early?

Yes, at any time and in part or in full. The right comes from § 500 (2) BGB, and TARGOBANK confirms it on its help page. A special payment goes to the loan account by transfer, a full payoff is requested in writing.

Does TARGOBANK charge a fee for early repayment?

Not on special payments of up to 50 percent of the current balance every 12 months. Above that, compensation can apply, capped by § 502 BGB. Working out the payoff figure is free according to the price list, with a charge only for postage.

How much is the TARGOBANK early repayment charge?

TARGOBANK calculates it on principles set by the German courts, based on the remaining fixed-rate period and on interest rates. Under § 502 BGB it may not exceed 1 percent of the amount repaid early, or 0.5 percent with a year or less to go, and never the interest you would still have paid.

Do I save interest by paying off a TARGOBANK loan early?

Yes. Under § 501 BGB the total cost falls by the interest for the term that falls away, and TARGOBANK charges interest on what is outstanding. The app works out from your own figures how much sooner you finish.

How do I make a special payment to TARGOBANK?

From a TARGOBANK current account in online banking under “Konten”, “Überweisungen”, “Zwischen Ihren Konten”, or at a branch with a cash desk. From another bank you transfer to the loan account, with the IBAN and BIC your branch gives you.

Can I pay off a TARGOBANK loan online?

No. TARGOBANK’s help page says a payoff cannot be arranged online and asks for a written instruction by post or fax. A special payment from a TARGOBANK current account does work in online banking.

Why was no instalment collected after my extra payment?

Because TARGOBANK sets a special payment of up to one instalment against the next instalment due. Only an amount beyond that lowers the loan balance.

Can I cancel a TARGOBANK loan?

Ordinary notice is generally not possible while the agreed term is under ten years. You can still repay early at any time, and right after signing you have the statutory withdrawal right plus, on the Ratenkredit, TARGOBANK’s extra right of return.

Paying off a TARGOBANK loan early

You can repay a TARGOBANK instalment loan early at any time, in part or in full, and TARGOBANK charges no compensation on special payments of up to 50 percent of the current balance every 12 months.

By Deniz Erginos. Updated 12/10/2026

TARGOBANK is a German bank, and its Ratenkredit, sold as the Online-Kredit and the Filial-Kredit, is a consumer loan under German law. You pay the same instalment every month, made up of interest and repayment, the borrowing rate (Sollzins) is fixed for the whole term, and interest runs on the amount still outstanding. TARGOBANK’s documents are in German, so the German terms below are the ones in your paperwork.

Online, in a branch or at a shop

Online-Kredit: Signed online. This page is about it.
Filial-Kredit: Signed in a branch, with the same free special payments.
Financing at a shop: Signed when buying in a shop or online store (Händlerfinanzierung). Early repayment is allowed here too, but TARGOBANK’s information sheet for it names no free special payment.

Ratenkredit, TARGOBANKTARGOBANK’s product page for the instalment loan, in German, whose offer is based on the Online-Kredit. The box “Kostenlose Sonderzahlungen” and the item “Laufzeitverkürzung” in the list of benefits name the free special payment, and the section “Wie funktioniert der Ratenkredit?” carries the sentence on repaying in full.

Filial-Kredit, TARGOBANKThe product page for the branch loan, in German. The box “Kostenlose Sonderzahlungen” names the same rule as for the Online-Kredit.

Consumer credit for shop financing, TARGOBANKTARGOBANK’s German information sheet on financing at a shop. Section 1.11 covers early repayment and the compensation for it and names no free special payment.

Early repayment is allowed at any time

Under § 500 (2) of the German Civil Code (BGB) you may repay a consumer loan early at any time, in part or in full, and TARGOBANK’s information sheet on the Ratenkredit says the same. According to that sheet you generally cannot give ordinary notice while the agreed term is under ten years.

The saving is in the interest. Under § 501 BGB the total cost falls by the interest and charges for the term that falls away, and because TARGOBANK charges interest on the amount outstanding, less interest builds once a special payment lowers the balance.

If the agreement is brand new, you can withdraw within the statutory 14 days (Widerruf). On the Ratenkredit TARGOBANK adds a right of return for another two weeks, provided you pay the money back within that time.

Consumer credit information sheet, TARGOBANKTARGOBANK’s plain-language explanation of the Ratenkredit, in German. Section 1.6 names the fixed rate, 1.9 the annuity loan, 1.11 early repayment at any time, 1.12.1 the right to give notice, and 1.13 withdrawal and the extra right of return.

§ 500 BGB, Gesetze im InternetThe official German wording on early repayment. Paragraph 2 sentence 1 carries the right to settle a consumer credit agreement early, in part or in full.

§ 501 BGB, Gesetze im InternetThe official German wording on the reduction of costs. Under paragraph 1 the total cost falls by the interest and charges for the remaining term when you repay early.

§ 512 BGB, Gesetze im InternetThe official German wording on deviating agreements. Sections 491 to 511 BGB, § 500 among them, may not be departed from to the consumer’s disadvantage.

Up to 50 percent without compensation

A German bank may charge compensation for early repayment, the Vorfälligkeitsentschädigung, because it loses interest. TARGOBANK waives it on special payments of up to 50 percent of the current capital balance (Kapitalsaldo), the part of the loan still outstanding, every 12 months. The balance drops and the loan ends sooner. TARGOBANK states that only your contract documents are legally binding, so check that the rule is in yours.

Price list, TARGOBANKTARGOBANK’s Preis- und Leistungsverzeichnis, in German. Part B section 8 “Kredite”, table for the Ratenkredit and the Online-Kredit, under “Vorzeitige Ablösung auf Kundenwunsch”: the line waiving compensation on special payments of up to 50 % of the current balance.

Consumer credit information sheet, TARGOBANKSection 1.11 names the free special payment of up to 50 percent of the current balance every 12 months. The notice before part 1 says only the contract documents are legally binding.

Above that line, compensation can apply

On amounts above 50 percent of the current balance, TARGOBANK charges compensation on principles set by the German courts, depending on how long the fixed rate still runs and on interest rates on the day you repay. The method is in your loan agreement and in the European Standard Consumer Credit Information (Europäische Standardinformationen für Verbraucherkredite).

§ 502 BGB allows the charge only while you owe interest at a borrowing rate fixed when the contract was signed, which on the TARGOBANK Ratenkredit is the whole term. For an ordinary consumer loan, paragraph 3 then sets these ceilings:

More than a year before the agreed end: At most 1 percent of the amount repaid early.
No more than a year before the agreed end: At most 0.5 percent of the amount repaid early.
In every case: No more than the interest you would still have paid until the agreed end.

Under paragraph 2 there is no charge if you repay from an insurance the loan agreement required as security, or if the contract’s statements on the term, your right to give notice or the calculation are insufficient. The percentages are ceilings, not a price.

§ 502 BGB, Gesetze im InternetThe official German wording on compensation for early repayment. Paragraph 1 ties it to a fixed borrowing rate, paragraph 2 sets out the exclusions, paragraph 3 the ceilings of 1 percent and 0.5 percent and the limit of the interest forgone.

All at once or in two steps

The limit is measured against the current balance, and the whole remainder always sits above it, so clearing the loan in full can carry compensation now or later. Pay only up to the limit now and the rest keeps carrying interest. Put the compensation TARGOBANK quotes for today next to the interest the rest costs for as long as it stays open.

Making a special payment

From a TARGOBANK current account, transfer in online banking under “Konten”, “Überweisungen”, “Zwischen Ihren Konten” to the loan account, or pay in at a branch with a cash desk.
From another bank, you need the loan account’s IBAN and BIC. Your TARGOBANK branch gives them to you, and its contact details are in your loan agreement.
Check afterwards that the balance on the loan account has gone down.

Help with loans, TARGOBANKTARGOBANK’s German help page on loans, section “Verwaltung”. “Kredit vorzeitig zurückzahlen & Sonderzahlungen” says you can repay early at any time, and “Sondertilgung für Kredit” covers the offset against the next instalment, the payment routes and the phone number.

Paying the loan off in full

A payoff cannot be arranged online. Send your instruction in writing, by post to the PO box in Duisburg or by fax, both listed on the help page under “Kredit der TARGOBANK ablösen/umschulden”.
Give the contract number and ask for the payoff figure (Ablösebetrag) for a set date, with the part that is compensation shown.
Pay the amount as TARGOBANK sets out, then check that the loan account is settled.

According to the price list, working out the payoff figure is free on the Ratenkredit and the Online-Kredit, with a charge for sending it by post.

Help with loans, TARGOBANKUnder “Kredit der TARGOBANK ablösen/umschulden” in the section “Verwaltung”, TARGOBANK states that a payoff cannot be arranged online and gives the postal address and fax number for the written instruction.

Price list, TARGOBANKPart B section 8 “Kredite”, table for the Ratenkredit and the Online-Kredit, under “Vorzeitige Ablösung auf Kundenwunsch”: the line “Berechnung Ablösebetrag” and the charge for postage.

When the regular instalment itself gets hard

Payment break (Ratenpause): you pause repayment for one instalment. It is not written off; the term gets longer to make up for it and to cover the interest of the break. Apply in online banking under “Kontakt”, “Neue Nachricht”, subject “Finanzierung”. Conditions and deadline are on the help page.
Payment help (Zahlungshilfe): for a financial squeeze you apply in online banking under “Meine Konten”.
Loan support: for repayment difficulties TARGOBANK runs a central Kreditbetreuung, with the number on the help page under “Zahlungsprobleme”.

Help with loans, TARGOBANKUnder “Was ist eine Ratenpause?” and “Ratenpause beantragen” TARGOBANK sets out the effect, conditions, deadline and how to apply, and the section “Zahlungsprobleme” covers payment help in online banking and the Kreditbetreuung.

When a counselling service is the better address

The app answers how long it takes. When the monthly payments together are more than what is left at the end of the month, a debt counselling service in Germany can help. It can negotiate with your creditors, free of charge and bound by confidentiality.

Find a counselling centre, BAG-SBThe German federal association for debt counselling runs the directory of recognised centres. Advice there is free of charge.

Online debt counselling, CaritasFree and anonymous, with no office visit. Answers come in writing from counsellors.

The app

In the app the loan becomes a pad with one sheet per month, and on top sits the day it ends. Record an extra payment and it takes sheets off, and you see how many days sooner you are done. Everything stays on the phone, with no account and no bank connection.

Get it on the App Store Get it on Google Play

Common questions

Can I pay off my TARGOBANK loan early?: Yes, at any time and in part or in full. The right comes from § 500 (2) BGB, and TARGOBANK confirms it on its help page. A special payment goes to the loan account by transfer, a full payoff is requested in writing.
Does TARGOBANK charge a fee for early repayment?: Not on special payments of up to 50 percent of the current balance every 12 months. Above that, compensation can apply, capped by § 502 BGB. Working out the payoff figure is free according to the price list, with a charge only for postage.
How much is the TARGOBANK early repayment charge?: TARGOBANK calculates it on principles set by the German courts, based on the remaining fixed-rate period and on interest rates. Under § 502 BGB it may not exceed 1 percent of the amount repaid early, or 0.5 percent with a year or less to go, and never the interest you would still have paid.
Do I save interest by paying off a TARGOBANK loan early?: Yes. Under § 501 BGB the total cost falls by the interest for the term that falls away, and TARGOBANK charges interest on what is outstanding. The app works out from your own figures how much sooner you finish.
How do I make a special payment to TARGOBANK?: From a TARGOBANK current account in online banking under “Konten”, “Überweisungen”, “Zwischen Ihren Konten”, or at a branch with a cash desk. From another bank you transfer to the loan account, with the IBAN and BIC your branch gives you.
Can I pay off a TARGOBANK loan online?: No. TARGOBANK’s help page says a payoff cannot be arranged online and asks for a written instruction by post or fax. A special payment from a TARGOBANK current account does work in online banking.
Why was no instalment collected after my extra payment?: Because TARGOBANK sets a special payment of up to one instalment against the next instalment due. Only an amount beyond that lowers the loan balance.
Can I cancel a TARGOBANK loan?: Ordinary notice is generally not possible while the agreed term is under ten years. You can still repay early at any time, and right after signing you have the statutory withdrawal right plus, on the Ratenkredit, TARGOBANK’s extra right of return.