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Early repayment of loan

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  • 15-08-2018 6:49pm
    #1
    funnystory
    Registered Users Posts: 44 ✭


    Good evening ,



    I applied for personal loan over 3 years

    I choose 3 years so that I don't have to pay too much per month but now I want to clear off my loan early.

    what is the process for this?

    Kind Regards


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    #2
    wally1990
    Registered Users Posts: 1,222 ✭✭✭wally1990


    funnystory wrote: »
    Good evening ,



    I applied for personal loan over 3 years

    I choose 3 years so that I don't have to pay too much per month but now I want to clear off my loan early.

    what is the process for this?

    Kind Regards

    I don’t work for BoI but I had the exact same query with my loan

    I rang them and said I want to clear the loan faster
    I didn’t want to see out the full term

    I asked to increase my DD for the repayments

    I was refused because the loan was taken out on the basis of €X.XX repayments per month over X term

    However she advised me I could make manual repayments for extra amounts via my online account by transferring from current account to loan account but they couldn’t change my standing order amount.

    so basically I’m manually paying more on mine each month to reduce the principal


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    #3
    cython
    Registered Users Posts: 4,767 ✭✭✭cython


    Worth noting that if you took out a fixed rate and fixed term loan you'll likely still be expected to repay the full amount you'd pay by seeing out the loan. Basically the bank will expect to get their return on the loan regardless of it being repaid sooner, and unlike a mortgage over a long term and for a large sum, earlier repayments don't have the same incentive to them for such loans.


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    #4
    kjbsrah1
    Registered Users Posts: 243 ✭✭kjbsrah1


    Stick to credit unions.


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    #5
    JustJoe7240
    Registered Users Posts: 1,469 ✭✭✭JustJoe7240


    kjbsrah1 wrote: »
    Stick to credit unions.

    Based on what?

    CU's often have much higher rates and make you hold money until the loan is paid off.


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    #6
    Sleeper12
    Registered Users Posts: 17,064 ✭✭✭✭Sleeper12


    funnystory wrote:
    I choose 3 years so that I don't have to pay too much per month but now I want to clear off my loan early.

    funnystory wrote:
    what is the process for this?


    There is no straight answer without knowing what type of loan you have.

    It depends on what is in your T&Cs. I'm with BOI since 1985 and I always make sure before signing that I can pay the whole loan off early without penalty. This usually isn't a problem but there are packages where you might get a free weekend away or something like that. Usually you will pay a penalty for closing the loan early with a package like that.

    The only way to know for sure is to pm whatever rep replies here tomorrow. They will look your loan type & advise you


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    #7
    Bank of Ireland: Lorna
    Closed Accounts Posts: 423 ✭✭Bank of Ireland: Lorna


    Hi Funnystory,

    There is no penalty for paying back a Bank of Ireland personal loan early.

    You can do this by adding the loan account as a payee on your 365online and making a transfer.

    To find out your closing balance you can contact our Credit Operations team on 1890222200. Their phone lines are 9-5 Monday - Friday.

    Thanks,

    Lorna


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