Paying off a loan early

Question_2

For example:

If I was to take out a loan for £8,000 for a 36 month period and as the months go by I get upto paying back £5,000 back would you bank allow me to pay off the remaining £3,000 in one lump sum?


Thanks

itsnever2lateisit?

The devil is in the detail. Most institutions levy a penalty of between 1 and 3 months interest for early redemption

GeorgeUK

Yup - it all depends on the smallprint.

It may be possible to overpay (up to a limit) some months on a loan, then avoid the early redemption charge by leaving just a few hundred and paying the minum each month - so you aren't really paying it early, just alot less that if you stuck to strict payments. As already stated though, it's the details that will decide it. Check your T&C.