loan interest rates

gustavski

Most banks charge less interest for larger sums borrowed.
If I only want a small loan say £1000 pounds, borrow say £10000 then pay back £9000 in the next month would the rest £ 1000 still be at the lower interest rate?

gus

[Deleted User]

Yes. However, check whether the monthly payments would be unchanged.

Herzlos

You'd need to check for early repayment fees, and would likely be stuck with the monthly payments from the full loan (so would pay it off much quicker).

But I've done it (well, loan for £7500, repaid £1500)

Nebulous2

Some lenders give you the choice. For example, from Santander:-

"Upon making a partial repayment you can choose whether to either reduce the term of your loan or your monthly repayment amount."