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What happens if I want to close my loan early?

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TitleWhat happens if I want to close my loan early?
Answer
If you're thinking about closing your loan early, it’s important that you get a quote first so that we can calculate the total settlement amount required to fully close your loan.

You can get a quote by simply following the steps below.
  • Log in to your account
  • Click Manage
  • Scroll down to the Close your loan section
  • Click Calculate my settlement
We’ll charge an early settlement fee of up to 58 days additional interest if you choose to close your loan early. How we calculate this is determined by the Consumer Credit (Early Settlement) Regulations 2004 and is summarised below.
  • If your original loan term is 12 months or less, we’ll charge up to 28 days interest and include this in your early settlement quote
  • If your original loan term is over 12 months, we’ll charge up to 58 days interest and include this in your early settlement quote
So, depending on the length of your loan term, you’ll be given a quote which is your latest balance, any daily interest due to be applied, plus the equivalent of one or two month’s interest. Your quote will be valid for 30 days.

If you get a quote to settle your loan and your loan repayment is due in the next three working days or less, we won't be able to cancel your Direct Debit in time. So, if you were to settle your loan, your regular repayment will be taken as usual and we'll refund the money back to you within 10 days. If you'd prefer this not to happen, you can always wait and request an early settlement quote straight after your monthly repayment has left your bank.

If your monthly repayment is already due but you haven’t made this payment, we’ll assume you’re still going to make this payment as usual, so it won’t be included in the settlement quote. This means if you go ahead and settle your loan before making this month’s repayment, you’ll still need to make one final payment to fully close your loan. If you’d prefer this not to happen, we recommend you wait and request an early settlement quote at least eight days after your last repayment has been made.

Closing your loan early will reduce the total amount of interest you pay.
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