What happens if I can pay more towards my loan?
One of the benefits of a loan from CLCU is that if you can repay early, you end up paying less interest. This is because the amount we charge is based on the declining balance of your loan. The smaller the loan balance the less interest you pay.
For example, if you borrowed £500 over one year, you’d pay back the £500 plus £103 interest. The monthly repayment would be £50.
If you increased this payment to £80, you’d clear the loan in 7 months and pay back just £62 interest.
Because any extra payment you make is allocated to your savings account, you’ll need to tell us if you want this to go towards your loan.
For example, if you borrowed £500 over one year, you’d pay back the £500 plus £103 interest. The monthly repayment would be £50.
If you increased this payment to £80, you’d clear the loan in 7 months and pay back just £62 interest.
Because any extra payment you make is allocated to your savings account, you’ll need to tell us if you want this to go towards your loan.
Updated on: 15/11/2021
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