Tesco Loan, quick clarification on early repayment needed please

moatmeister

Lookedat other similar posts and now very confused by all this, hope someone cant point me in the right direction.

Just been accepted for tesco loan, 10K/5yrs/11.5% total £10000 + £3026 interest repayable, £217.10/month

Tried to get clarification from Tesco phone advisor but he was unable to answer the question although did offer to try to find out.

If I repayed early, say after 30 months, ie half the term what would be the total cost?

Is interest still front loaded?

How is this calculated?

When is the most cost effective point for early repayment?

[Deleted User]

if you settle early then you will have paid the interest to date then they will charge you an additional month(or poss two)interest

bengalknights

The cost is usually plus 2 months interest so for 30 months you would pay around £1613 interest

moatmeister

Cheers but is it done pro rata or do they front load the interest, ie for the first payment would it be for example £217.00 towards the interest and about 10p paid off the capitol or every month £190 + £27.10 interest? (random figures!)

CLAPTON

in the early months of the loan you pay more interest simply because you owe more

so in month one you owe 10,000 so you are charged
10,000 x11.5% /12

in the second more you owe a little less so the interest declines too

so it's not front loaded but you do (obvioulsy) pay more interest in the early months that the later months

moatmeister

Thanks

was hoping for reply from you, you seem to talk sense on here!