Loan Repayment Advice?

apoole

I currently have a loan with Tesco Finance which is over a 4 year period; the original loan amount was £10k. I am currently paying back £240 (approx.) a month and have 18months left on my loan (outstanding balance £4500).

I am looking to reduce the outstanding amount on my loan by paying a £2000 lump sum to bring my outstanding amount down to £2500.

By reducing my outstanding loan balance; My questions are:

do my monthly repayments stay the same and my loan period is reduced?
or
can I then reduce my monthly repayments and my loan period stays the same? (preferred option).

Additional question: can I request my preferred option? Or does my loan provider determine how my repayments are structured?

Thanks in advance for any advice.

McKneff

I would have thought it would be in your terms and conditions.

I also would have thought you would have to keep to the same monthly repayments, this is the contract you would have sined when you took out the loan.

Ring them if its easier, but anything they tell you, get it in writing.

Please dont mess about with the fonts, its difficult to read when its smaller.

paddyrg

That's between you and them - if I were you I'd keep the payments the same and pay it off sooner, otherwise the benefit of the payment will be weakened a bit by the extra interest of paying it off slower than you could do.