Asda loan

jolester

Just in the throes of applying for a loan, going to fill out the application with Asda, but before I do could someone please clarify the following

On their page telling you why their loan is better than Tesco or Sainsbury's there is a tick in the box "make early repayments " does this mean any random amounts of additional funds can be paid to reduce the term as and when? And with Asda is it something you can easily do yourself? (As in log onto your account as opposed to having to call up)?

Thank you

System

Yes you can make earlier repayments and its a bit misleading by Asda to say they're better than others because of this because you can with any lender. You would most likely need to do it by phone initially as overpayments can be assigned to reduce the term or the monthly repayment so you need to clarify which.

ReadingTim

Suspect it's spin and marketing more than anything, but from a lender's perspective, when you borrow from them, you agree to repay a set amount every month for a set time, totalling a set amount. They need to rely on these amounts coming in for their business. Early repayment messes this up, and means (possibly) less is repaid overall than expected. Good for the customer, less good for the lender. Hence, some lenders impose some penalties for early repayment to (partially) compensate for that lost interest.

In this context, suspect Asda has lower (or no) early repayment charges or other penalties compared to Tesco/Sainsburys