Tesco Loan - 84 months

MickeyD_2

Hi guys,

I wonder if someone could possibly advise me? I am looking to borrow £6000 through Tesco Loans. However, I would ideally like the term to be 84 months. In order to do this, I would need to borrow as a minimum £7500.

Would it be possible to borrow £7500, and then pay back the extra £1500 as an additional payment, leaving £6000 as the balance? Also, would the APR then remain the same across the remainder of the term (currently 4.5%)?

Many thanks

Tixy

Yes you should be able to repay a partial amount straight away without penalty (just to be sure read the T&Cs and check it doesn't mention any fee for partial overpayments).

The APR will not change if you make partial overpayments, it will be whatever rate they offer you when you apply for the loan (is the 4.5% you mention actually a rate you have been offered by the lender - or are you just referring to the representative APR?)

jonesMUFCforever

Just remember the repayment will stay the same throughout the loan regardless of any overpayments.

ch3101

What is the loan for?

If it's anything other than home improvements then you need to borrow more than £15000 for it to be over longer than 5 years.

ch3101

Also, if you make an overpayment you can EITHER:

Reduce monthly payment amount and keep term the same

OR

Reduce term and keep monthly payment the same