Can I just transfer money directly into a loan account?

EmmetRyan89

Hi,

I have a current account and a student loan account with BOI. I also have an Ulster Bank current account that I get my wages paid into.

Each month, I transfer a sum from my Ulster Bank current account into the BOI current account. Then a standing order takes that sum from the BOI current account into the loan account.

I currently have saved up a few thousand in my Ulster Bank account, and would like to use that to pay off most of my remaining loan amount. 

Can I just do a normal transfer of funds from my Ulster Bank current account into the loan account? Or is there a different process, as it's a loan account?


Sorry for such a silly question and thanks in advance for your help!
Emmet.

Bank of Ireland: Nicola

EmmetRyan89 wrote: »

Hi,

I have a current account and a student loan account with BOI. I also have an Ulster Bank current account that I get my wages paid into.

Each month, I transfer a sum from my Ulster Bank current account into the BOI current account. Then a standing order takes that sum from the BOI current account into the loan account.

I currently have saved up a few thousand in my Ulster Bank account, and would like to use that to pay off most of my remaining loan amount. 

Can I just do a normal transfer of funds from my Ulster Bank current account into the loan account? Or is there a different process, as it's a loan account?


Sorry for such a silly question and thanks in advance for your help!
Emmet.

Hi EmmetRyan89,

Thanks for your post and welcome to Boards.ie

It is advisable to call 1890 365 100 so that a representative can give you a closing balance on the loan. This is to ensure that you know the full amount to be repaid (including any interest or charges to date) and to ensure that the loan is closed completely.

They will also need to arrange for your loan repayment standing order to be cancelled once the loan balance has been cleared.

Depending on the type of loan that you have a representative will advise you on what repayment method you can use to clear the loan.

I hope this helps, please let me know if you need anything else.

Thanks
Nicola

EmmetRyan89

Thanks for the prompt reply.

I actually won't be fully closing the loan, I just want to pay off the bulk of the remaining balance to avoid unnecessary interest charges. I will still have around 1000 remaining on it, after I transfer across the payment.

Should I still ring the number you provided?

Thanks!

Bank of Ireland: Nicola

EmmetRyan89 wrote: »

Thanks for the prompt reply.

I actually won't be fully closing the loan, I just want to pay off the bulk of the remaining balance to avoid unnecessary interest charges. I will still have around 1000 remaining on it, after I transfer across the payment.

Should I still ring the number you provided?

Thanks!

Hi EmmetRyan89,

For a variable rate loan you can repay the loan or any part of it early without incurring any charge for early repayment. If you don’t intend fully closing the loan you can make a payment by transferring directly to the loan account.

However, as you may have to pay charges if you pay off a fixed rate loan early it would be best to clarify if the loan is fixed or variable. You can do this by calling the number provided and a representative will be happy to check this for you.

Thanks
Nicola

EmmetRyan89

Great, I am pretty sure it's variable but I'll call the number to be sure.

Thanks a million!

Bank of Ireland: Nicola

EmmetRyan89 wrote: »

Great, I am pretty sure it's variable but I'll call the number to be sure.

Thanks a million!

You're very welcome EmmetRyan89, get in touch again if you need anything else.


Thanks
Nicola