Can I get a loan which give one year before repayments start?

mr_stick

Hi all!

I have two questions:

1, I want to take out a loan that wont require any repayments for a year. I don't mind paying a little more interest as a result. How can I get such a loan?

2, If I get an ordinary loan from a bank, can I payback the full amount (including all future pending interest) early? Let's say I take out a 5 year loan, can I then payback after 1 year if I no longer need the money?

WillyWonga

Answers;

1: No

2: Yes, you can settle a loan at anytime with a reduction of the interest owed.

mr_stick

WillyWonga wrote: »

Answers;

1: No

What if I need a loan for a business? It will take a year before profits start coming in.

YorkshireBoy

You borrow more than you need, put the excess to one side, and then use it to help fund the first years payments...don't you?

Thrugelmir

mr_stick wrote: »

What if I need a loan for a business? It will take a year before profits start coming in.

Overdraft facility?

jonesMUFCforever

Or a credit card with a money transfer facility or a long term purchase credit card?

mr_stick

Thanks all

MEM62

mr_stick wrote: »

What if I need a loan for a business? It will take a year before profits start coming in.

If you are borrowing money to start a business you will need a business plan to approach the bank with. You will also need to demonstrate that you are investing your own money into the venture - most banks look for 50%.