Your selected question and answer
Question:
Is there a fee if I settle my loan early?
Answer:
Early settlement fees may apply. You may be charged up to two month's interest if you choose to settle your Tesco Loan early.
Please Note: Interest is not pro rated over the term of your loan. The interest payable over the term of your loan is calculated by applying the agreed interest rate to the loan capital on the basis that you will be paying back part of the loan capital each month over your chosen term. Because your loan capital is higher in the early months of your loan this will result in a larger amount of interest being paid by you in the early months than in the later months.
Therefore the early settlement fee of up to two months interest will vary in amount according to the size and duration of your loan at the time you choose to settle.
Please refer to ‘Can I settle my loan early?’ for further details about the early settlement process.
If you are looking to make an additional part payment to your loan please refer to Can I make additional payments to my loan?
