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Reduce loan monthly repayments

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  • 21-06-2018 9:46am
    #1
    Syngmaster
    Registered Users Posts: 19 ✭


    Hi,

    I have a couple of questions regarding my loan.
    I've recently got a loan of 11 000 EUR and my monthly repayments are 264 EUR (48 months term).
    Yesterday I lodged a lump sum in the amount of 350 EUR onto my loan account.
    However 264 EUR was taken from my account this morning, so there was no change in the repayment amount.

    So, questions:
    1. Is there any minimum of the lump sum to be lodged so it can reduce monthly repayments?
    2. When I'm lodging a lump sum while I'm at the branch, do I need to specify that I want my repayments to be recalculated?
    3. Where did 350EUR go then? Towards the outstanding loan amount? Towards the interest? Or monthly repayments will be recalculated and reduced from next month?

    Thank you in advance.


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  • Options
    #2
    Bank of Ireland: Sarah
    Closed Accounts Posts: 1,640 ✭✭✭Bank of Ireland: Sarah


    Syngmaster wrote: »
    Hi,

    I have a couple of questions regarding my loan.
    I've recently got a loan of 11 000 EUR and my monthly repayments are 264 EUR (48 months term).
    Yesterday I lodged a lump sum in the amount of 350 EUR onto my loan account.
    However 264 EUR was taken from my account this morning, so there was no change in the repayment amount.

    So, questions:
    1. Is there any minimum of the lump sum to be lodged so it can reduce monthly repayments?
    2. When I'm lodging a lump sum while I'm at the branch, do I need to specify that I want my repayments to be recalculated?
    3. Where did 350EUR go then? Towards the outstanding loan amount? Towards the interest? Or monthly repayments will be recalculated and reduced from next month?

    Thank you in advance.


    Hi Syngmaster,

    Thanks for getting in touch with us on Boards.

    When you make an extra payment to your loan account, this would not reduce your monthly payments to it. You would need to contact our lending team if you wish to request a change in the monthly payment amount. You can contact us on 0818365365 and an advisor will be happy to help you.
    In relation to the lump sum lodgement, this will reduce your term of the loan and the amount of interest you pay over the term of the loan.

    Thanks,
    Sarah


  • Options
    #3
    Syngmaster
    Registered Users Posts: 19 ✭Syngmaster


    Thanks Sarah,

    Could you tell me please whether there are any fees or charges if I want to reduce the monthly payment amount in accordance with a lump sum?

    Thanks, 


  • Options
    #4
    Bank of Ireland: Alison
    Closed Accounts Posts: 1,060 ✭✭✭Bank of Ireland: Alison


    Thanks for coming back to us Syngmaster,

    It's difficult to give you a direct answer here on this without an Advisor reviewing your initial loan agreement.  If you would like to reduce the payments, it may require a new loan agreement to be drawn up. It would be best to call 0818 200 334 and an Advisor can look at your initial loan application and advise further if this will be the case.

    Many Thanks
    Alison


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