Early settlement of Lloyd's loan

paul1672

Hi there
Looking for some advice in regards to settling up my Lloyd's personal loan early.
I am now in a position where I can afford to repay the loan 22 months early but am a bit confused as to how to avoid any extra interest fees if I repay early. My understanding is if I paid up the entire amount minus a few pounds and then request a settlement fee I should only incur a small amount of interest. Now the problem is I recently asked for a settlement quote based on its current figure and it's about £180 higher than what I currently owe due to the 56 days interest. The problem lies in the fact the quote will last until 20th sept. So, do I make an additional payment for all but the last months payment plus a pound now or do I just wait it out until September 20th and then make the additional payment minus a few pounds and then request a new loan settlement quote?
Very confused as to what would be best in the long term.
Any help greatly appreciated
Paul

jonesMUFCforever

Make the payment now - do not cancel the direct debit or pay anything else manually - let the direct debit for the repayment go through even if it puts the loan into credit. They will refund any overpayment.

lee111s

I have a friend who works for TSB, she told me that pay off a lump sum leaving around £50 oustanding. When the next DD payment is taken, it will clear the balance and you will get a refund for the amount overpaid. This way you avoid the 58 days interest

paul1672

Thanks for replies. All sorted