Conditions For Early Repayment Of HSBC Loan

REKX

So I have received the loan I sought to get to fund a car purchase.

I would like to pay this back as soon as I can so I was wondering how this process forms and how the interest is calculated.

If someone could explain.

I have not chosen to defer any payments and will be paying commencing now. So will interest be calculated on the original loan amount (15k), or the amount remaining or is there a minimum that I must pay?

I aim to knock of around £2k in February, another £2k in March and then on clear the rest in the 6-12 months following.

Many thanks.

[Deleted User]

You'll need to check the specifics terms of your loan. Most lenders, if not all, will charge 2 months interest on early settlement of the loan. In some cases, this will also apply to interim overpayments.

CLAPTON

REKX wrote: »

So I have received the loan I sought to get to fund a car purchase.

I would like to pay this back as soon as I can so I was wondering how this process forms and how the interest is calculated.

If someone could explain.

I have not chosen to defer any payments and will be paying commencing now. So will interest be calculated on the original loan amount (15k), or the amount remaining or is there a minimum that I must pay?

I aim to knock of around £2k in February, another £2k in March and then on clear the rest in the 6-12 months following.

Many thanks.

it would seem the HSBC website says you can make overpayments without penalty
but check your own T&Cs

REKX

CLAPTON wrote: »

it would seem the HSBC website says you can make overpayments without penalty
but check your own T&Cs

Ok, Il check that out.

And perhaps I should have gone for the dealer's own finance as they allow payments completely without charge.

lee111s

I believe HSBC to have the same policy as First Direct whom with I have a loan.


You can make overpayments with no penalty unless you clear the loan in full early with overpayments.


to avoid penalty, pay the whole loan off bar one month's payment, this will then clear the loan naturally when your next payment is taken and this won't generate an early repayment penalties.