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Early settlement interest charge
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A friend of mine has a Tesco personal loan taken out in 2011.
He wants to settle the loan early, but as it was a large loan initially, the two months interest penalty is over £200.
Could he make a large overpayment on the loan and then let his usual monthly payment clear the loan to avoid this penalty charge or would it be charged regardless if the loan doesn't run for the full term?
He wants to settle the loan early, but as it was a large loan initially, the two months interest penalty is over £200.
Could he make a large overpayment on the loan and then let his usual monthly payment clear the loan to avoid this penalty charge or would it be charged regardless if the loan doesn't run for the full term?
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Comments
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Should work.0
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Yes this will work fine0
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look at the terms, I had a loan will Lloyds. Bank manager advised me to pay off most of the loan but not all as the penalty would be on the last payment so a percentage on last payment0
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