Paying more into my Wesbank loan

killerbyte

Expert Member
Joined
May 10, 2007
Messages
2,356
So I currently owe R100k on my car.
Does Wesbank allow you to pay extra every month?
What is the process? Do I just transfer to that account? Or is it more complicated?
 

blowdart18

Senior Member
Joined
Nov 12, 2015
Messages
923
Pay extra into the account each month.
Once it reflects, phone them and ask them to allocate.

Sometimes they will ask if you want to reduce your capital balance or if you want to reduce your remaining months.

Reducing your capital balance - your repayment will be less each month depending on how much you paid in.
Reducing your remaining months - your repayment will stay the same, however your period commitment will reduce.

Alternatively you can ask them to reduce the balloon if you have this on the vehicle.
 

joker08

Expert Member
Joined
Sep 4, 2018
Messages
1,645
I just paid into the account, they used to give me a rebate on the interest accrued on the principal amount.
 

Sinbad

Honorary Master
Joined
Jun 5, 2006
Messages
77,451
I have heard you got to contact them and get the extra money applied to the capital amount. Is this not the case?
This is not the case.

They will give you an interest rebate every month based on how much extra you've paid in.
 

Matt91

Expert Member
Joined
Sep 4, 2014
Messages
2,051
No need to be sarcastic.

I have done this numerous times, I know exactly how it works, from experience.

Wasn't trying to be a d!ck, but I'm talking from experience too. I had to specify where I wanted my extra payments to go toward, they just assumed I wanted to pay the interest off.
 

Sinbad

Honorary Master
Joined
Jun 5, 2006
Messages
77,451
Wasn't trying to be a d!ck, but I'm talking from experience too. I had to specify where I wanted my extra payments to go toward, they just assumed I wanted to pay the interest off.


I think you are confused by the "contract balance" part of their statements. This is the _total_ amount outstanding including all interest which would be charged up until the end of the contract period. There is also a capital balance, and THAT is the number against which interest is actually charged.
Paying money into the account decreases both the contract and capital balance. The monthly interest charge is precalculated according to the amortisation table when you start paying the loan - which is why, when you reduce the capital balance, you then get an interest rebate based on the difference between the actual capital outstanding and the scheduled capital outstanding according to the initial amortisation.
 

zerocool2009

Executive Member
Joined
Sep 4, 2009
Messages
6,748
So its a flexi on wheels? Put in and borrow against if needed?

Thats what I mean by facts..
 
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