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Nationwide Loan repayment & Interest

rj_uk
rj_uk Posts: 15 Forumite
I have applied for and been approved for an unsecured personal loan with Nationwide, details as follow;

Term; 36 months
Amount; £7,500
Charge for credit; £1550.76
Total amount payable; £9050.76
APR:13.4%
Monthly repayments of £251.41

I have yet to accept the loan.

I have since learnt in the next 8 weeks I will receive about £5,000 inheritance. I'd plan to use this inheritance as partial early repayment if I take the loan.

Alternatively I'm wondering if I should not take out the above loan & instead apply for a £2,500 loan but Im struggling to understand if this makes economic sense assuming the APR is higher.

Comments

  • rj_uk wrote: »
    Alternatively I'm wondering if I should not take out the above loan & instead apply for a £2,500 loan but Im struggling to understand if this makes economic sense assuming the APR is higher.

    Not in the slightest. Assuming partial repayments are allowed, the lower APR combined with (presumably) the higher contractual payment of the larger loan means you will pay less interest.
    urs sinserly,
    ~~joosy jeezus~~
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