Paying Natwest Loan Early - what does this mean?

Lea28

We have a Natwest loan which has a balance of £9500. The original loan was £10,000. We've had the loan since October and have paid 5 payments of £251.

APR is 17.44%. :eek:

I want to repay this loan tomorrow but the lending department is closed today so I can't get the settlement figure.

Now it says 58 days interest on the amount repaid early or 28 days If the period of the original loan is one year or less.

This is the part I don't quite get. Do we get 28 days interest as the loan is less than a year? Or does that mean 28 days if the loan has less than a year left to run?

And if any clever person can work out the amount of interest we are looking at paying I would be grateful.

[Deleted User]

It's the original loan length.

Without being bothered to get a calculator, I'd say the interest would be around £220.

Lea28

Deleted_User wrote: »

It's the original loan length.

Without being bothered to get a calculator, I'd say the interest would be around £220.

So my original loan length is 6 months? Does that mean 28 days interest or 58?

That's what I roughly got it to for 58 days interest.

[Deleted User]

There's no way your original loan length was only 6 months. You still have a balance of £9500 and are only paying £251 a month.

You've only had it 5 months - do you not remember what term you took it out over? My guess is 4 or 5 years.

Lea28

Deleted_User wrote: »

There's no way your original loan length was only 6 months. You still have a balance of £9500 and are only paying £251 a month.

You've only had it 5 months - do you not remember what term you took it out over? My guess is 4 or 5 years.

That's the part I couldn't understand. I didn't know if that meant a loan that was taken out less than a year ago would pay 28days interest or a loan that is going to finish in one year or less pays 28 days interest. To me it's not very clear in the contract. Either way it's cheaper for me to clear it now than to let it run the full term of 60 months.

Lea28

Deleted_User wrote: »

There's no way your original loan length was only 6 months. You still have a balance of £9500 and are only paying £251 a month.

You've only had it 5 months - do you not remember what term you took it out over? My guess is 4 or 5 years.

Now I get it! Thanks.