Can I get a loan which give one year before repayments start?

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mr_stick
mr_stick Posts: 22 Forumite
in Loans
Hi all!

I have two questions:

1, I want to take out a loan that wont require any repayments for a year. I don't mind paying a little more interest as a result. How can I get such a loan?

2, If I get an ordinary loan from a bank, can I payback the full amount (including all future pending interest) early? Let's say I take out a 5 year loan, can I then payback after 1 year if I no longer need the money?

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  • WillyWonga
    WillyWonga Posts: 324 Forumite
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    Answers;

    1: No

    2: Yes, you can settle a loan at anytime with a reduction of the interest owed.
  • mr_stick
    mr_stick Posts: 22 Forumite
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    WillyWonga wrote: »
    Answers;

    1: No

    What if I need a loan for a business? It will take a year before profits start coming in.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    You borrow more than you need, put the excess to one side, and then use it to help fund the first years payments...don't you?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    mr_stick wrote: »
    What if I need a loan for a business? It will take a year before profits start coming in.

    Overdraft facility?
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
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    Or a credit card with a money transfer facility or a long term purchase credit card?
  • mr_stick
    mr_stick Posts: 22 Forumite
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    Thanks all :)
  • MEM62
    MEM62 Posts: 4,754 Forumite
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    edited 19 October 2016 at 10:09AM
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    mr_stick wrote: »
    What if I need a loan for a business? It will take a year before profits start coming in.

    If you are borrowing money to start a business you will need a business plan to approach the bank with. You will also need to demonstrate that you are investing your own money into the venture - most banks look for 50%.
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