Paying a BOI 365 loan Early

Rock Climber

I took out a small BOI loan a few months ago.It was handy at the time as it allowed me to get more equipment for my workshop.
I've now made enough money to pay it off even though its supposed to be a 5 year loan and was wondering do you think there will be a charge for this.

Its one of those pre approved loans with a rate of 9%.I never saw any bank manager to get it,I just filled in the form online and then sent away the contract when they sent it to me.

Thanks in advance.

BuffyBot

I've now made enough money to pay it off even though its supposed to be a 5 year loan and was wondering do you think there will be a charge for this.

You'll need to contact them to be certain. If the loan was a fixed-rate loan, then there will most likely be an early penalty payment. They don't tend to be all that huge on a personal loan, so it may be worth closing it off early anyway to be free from payments.

Variable rate loans generally (not in all cases) tend to have no early repayment penalties. Give them a buzz and find out.

nlgbbbblth

personal fixed rate loans do not necessarily have a "break cost" if repaid early.

it's best to clarify this before signing the CCA loan agreement but I'd imagine you'll be ok. The Bank are entitled to add on the interest which has accrued since it was last charged. But this is unlikely to be very much. Generally fixed rate loans have the interest charged monthly, variable quarterly although this can vary.

Rock Climber

Thanks guys, it's variable so I guess I'll ring them

Wow they do make a lot of money on non secured loans-9% they're getting the money at 2% :eek: thats 450% mark up