Tesco Loan - early repayment fee

Paul1211

Hi

I am looking for some advice please. I am taking out a loan to pay an early settlement fee for my PCP car before I sell the car privately and pay the loan back straight away.

I have applied for a 16k loan over 4 years at a rate of 2.95% APR, with a total repayment of £16.985

When I go to settle this loan early (probably within a month), will I need to pay the whole £16.985, or will the Interest paid be based on the amount of time I have had the loan since the start date?

Thanks for your help, Paul.

[Deleted User]

You will pay the capital remaining at the time, with up to 58 days interest as an early repayment fee.

Paul1211

So this would be the £16,985 plus the 58 days interest?

foxy-stoat

Paul1211 wrote: »

So this would be the £16,985 plus the 58 days interest?

Yes, thats about it - apart from £16,000 plus the interest for 58 days.

KatrinaWaves

foxy-stoat wrote: »

Yes, thats about it

Surely thats not right.

if she pays it over 4 years, the interest is £985.

She will pay back £16k, plus whatever interest shes accrued in that month, PLUS the 58 days 'fee' which won't be £985.

foxy-stoat

KatrinaWaves wrote: »

Surely thats not right.

if she pays it over 4 years, the interest is £985.

She will pay back £16k, plus whatever interest shes accrued in that month, PLUS the 58 days 'fee' which won't be £985.

thats more like it

Paul1211

So in theory If i settle it after a year, I pay 246.25 plus the 58 days?

Thanks ��

foxy-stoat

What are the monthly repayments?

Actually the only information you need is in post #2.

If you want to know how much you owe in the future just call up Tesco for a settlement figure and clear it within the time limits.

Have you been approved the loan or just read the website for their cheapest rate?

Herzlos

If you settle it within 14 days cooling off period you only need to pay the pro-rata interest for those days too.

John_G_Jones

Paul1211 wrote: »

So this would be the £16,985 plus the 58 days interest?

No, you woudlrepay the £16k plus the interest you had accrued so far (small) and the 58 days interest (also pretty small).

Smellyonion

Tesco front loan their loans for having fixed monthly repayments.

You will repay 16k plus 2x months @3%. Which i calculate to be around £60. Dependent on how they calculate their interest.
Ask for the settlement figure.