Personal loan (Dumb question)

Lament

Lament

Executive Member
Joined
Feb 1, 2010
Messages
7,335
Reaction score
1,386
Location
ლ(ಠ益ಠლ)
Hi,
I know this might be a dumb/obvious question,
I made a personal loan beginning of the year, not a big amount, think its was something like 60k over a 5 year term.
So with the interest on the amount its +- 80k (as of today), if i want to settle this, will there be a settlement amount which is closer to the original 60k I borrowed, or if i want to settle will it be the 80k as per my statement?
 
I may be wrong, but I don't think they are allowed to charge you interest on the full term anymore if you settle early. Interest is calculated monthly, and at any given time when you settle, you settle the balance of the capital and not interest. I think they are allowed to penalise you if cancelled within a certain time of inception.
 
pinball wizard said:
Contact the lender. Most will give you a discount on the interest for early settlement.
Click to expand...

No discount, they can only charge him the accrued interest up to that point. They also cannot charge you early settlement penalties as the loan is below R250k.
 
I also lend, and after 2 months wanted to clean the loan, but hear that there was no discount, was upset and disappointed.
 
Lament said:
Hi,
I know this might be a dumb/obvious question,
I made a personal loan beginning of the year, not a big amount, think its was something like 60k over a 5 year term.
So with the interest on the amount its +- 80k (as of today), if i want to settle this, will there be a settlement amount which is closer to the original 60k I borrowed, or if i want to settle will it be the 80k as per my statement?
Click to expand...

If you've been paying regularly, the settlement will be lower than the 60k.
 
These people with their no discount (Robertvv) or discount for under R250 000 (evilskaap) :rolleyes:...

Lament, all you do is contact the credit provider for a settlement amount. They give it to you (it's valid for a certain number of days) and you settle. It would be the capital amount outstanding and the current accrued interest.
 
supersunbird said:
These people with their no discount (Robertvv) or discount for under R250 000 (evilskaap) :rolleyes:...

Lament, all you do is contact the credit provider for a settlement amount. They give it to you (it's valid for a certain number of days) and you settle. It would be the capital amount outstanding and the current accrued interest.
Click to expand...

This
 
supersunbird said:
These people with their no discount (Robertvv) or discount for under R250 000 (evilskaap) :rolleyes:...

Lament, all you do is contact the credit provider for a settlement amount. They give it to you (it's valid for a certain number of days) and you settle. It would be the capital amount outstanding and the current accrued interest.
Click to expand...

And ask for a discount while you are it.
 
Robertvv said:
I also lend, and after 2 months wanted to clean the loan, but hear that there was no discount, was upset and disappointed.
Click to expand...

Thank god your original application was probably in Afrikaans, otherwise you would probably have left your loan to your grand kids in your will one day...
 
supersunbird said:
These people with their no discount (Robertvv) or discount for under R250 000 (evilskaap) :rolleyes:...

Lament, all you do is contact the credit provider for a settlement amount. They give it to you (it's valid for a certain number of days) and you settle. It would be the capital amount outstanding and the current accrued interest.
Click to expand...

Thank you, will do. Will save me 20k :P
 
R120 000 at Nedbank. Paid up after 3 years, 2 years short.
No additional interest. Just the outstanding amount.
 
The banks can not charge interest into the future some products like homeloan have a 3 month cancellation period or notice period. Thats as bad as it gets.
Personal loans u should be able to cancel by only paying the outstanding amount.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X