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Loan early settlement

sarah7610
sarah7610 Posts: 148 Forumite
Part of the Furniture 10 Posts Combo Breaker
Hi, does anyone know how the interest is calculated if you pay off a loan early.
I took out a £1000 loan, first repayment being October 2016. The interest was 47.9% over 24 months, total amount payable £1465.68
Up to date I've paid £1,099.26

Thanks in advance

Comments

  • Nebulous2
    Nebulous2 Posts: 5,412 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Ask them for a settlement figure.

    They need to rebate interest for the period you haven't had the money when you repay early. They are allowed to charge two months interest as a penalty. Not all lenders do that - but I imagine somebody giving a smallish loan like that on a high rate of interest will do so.
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