Paying back a loan early? advice needed

[Hazmanscoop]

Literally just got off the phone to alliance and leicester about getting a loan

Minimum the lend is £1000 and my car is gonna cost £350 to put back on the road

So they accepted me and are sending me some forms to fill out.

Now i want to pay the loan back ASAP.

I get all my student loans on the 20th of september which would cover the cost of the repairs.

So i want the £1000 to cover the repairs of £350 and have £650 left over. then on the 20th of sept repay that £350 so i had £1000 again.

This would then lead me to wanting to pay back the loan in full at the end of september.

Anyone have any advice about charges etc i would incur if i payed it back early?

I did speak to my mate about it and they mentioned a cooling off period where you had like 14days to cancel it and they would take the money back with no interest. is this true? as i could take the loan out on the 6th of september and then just cancel it on the 20th

Any advice would be great

thanks

Andrew

[wadoryu]

as far as im aware you can pay back ny loan as early as you want and not get charged anything, more than a standard; let's say month.

[Hazmanscoop]

what so like id pay back £1000 plus one months interest of say 5.25

Interest is 18.9% over 3 years so 18.9 divided by 3 then by 12 = 0.525

1000/100 = 10

10 x 0.525 = £5.25

That sound right?

[wadoryu]

in theory yes. but if there are terms and conditions. whch stop you from doing so; then this is not the case.

[Hazmanscoop]

hmmm suppose ill just have to see what the agreement says when i get it through the post

cheers for the help ;)

[VTRelite]

You should ask if you can do early settlement payments

[skeltan]

There will most likely be charges mate for paying back early... then lend you the money knowing that they are going to make money on you with the interest so if you pay it back in a month they wont have made fuck all of you so they will charge you mate.

[P90PTS]

HBOS don't allow you to pay back a loan within the first 6 months of the agreement, also no payments are made for the first 3 months too.

Also as previously mentioned, expect some hefty interest charges for paying it back so soon, the banks don't really like short term lending as they aren't making any profit from it.

You'd be easier and probably cheaper to use an Overdraft facility or even borrow the cash off your mum or dad and pay them back

[jw1325]

just get an over draft!!!

simples!

[Sophia_Bush]

HBOS don't allow you to pay back a loan within the first 6 months of the agreement, also no payments are made for the first 3 months too.

Also as previously mentioned, expect some hefty interest charges for paying it back so soon, the banks don't really like short term lending as they aren't making any profit from it.

You'd be easier and probably cheaper to use an Overdraft facility or even borrow the cash off your mum or dad and pay them back


totally untrue we take early settlements within 6 months without issue for feps and lsp loans no problems

if I am honest in your situation get a credit card £500 limit if they give it you payit off when you get student loan through job done

[Hazmanscoop]

hmmm could be a good shout another credit card like :)

[Sophia_Bush]

c/c in all honesty is going to be easier as gives you freedom to pay back when you want and how much (min paym +) plus interest wise if you get one with 0% on purchases for a year your laughing