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Pay loan of early ?

k_moor25
k_moor25 Posts: 279 Forumite
in Loans
Hiya

I have a loan and my last payment is 2014 and I was wondering if I pay it off 2 years early do i get some intrest knocked off?

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    yes, you will get a rebate of the interest compared to paying for the full term.
  • paddyrg
    paddyrg Posts: 13,543 Forumite
    However you may get some kind of 'early termination fee' - talk to the loan provider, they can answer this question exactly for your circumstances and agreement.
  • k_moor25
    k_moor25 Posts: 279 Forumite
    ok thanx everyone
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    the early termination fee is a maximum of about 2 months interest
    but yes you need to ask your loan companay for a settlement figure
  • vicky_30
    vicky_30 Posts: 30 Forumite
    Yes you will save on the interest left on the loan.
  • buffy1981
    buffy1981 Posts: 465 Forumite
    Having same prob, dont understand the early settlement, i have a loan with 18months left to go and i owe £2800 but if i want to repay it back now they want £2700, they are only taking £100 off. I cant believe it:mad:
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