> ## Knowledge Base Index
> Fetch the complete knowledge base index at: https://help.centralcu.co.uk/sitemap.xml
> Use this file to discover available pages before exploring further.
> Pure-Markdown content can be obtained by appending a '.md' suffix to the content URLs listed in the sitemap (without the trailing slash).

# 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 interes**t. 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](https://centralcu.co.uk/contact-us/) if you want this to go towards your loan.