Loan repayment

[Aleixo09 (Aleixo Sequeira)]

Hi
I was planning to take loan from Monzo. I am eligible to borrow 5k while if I pay in 3 yrs then I pay around 7.5k. What if I repay it earlier like in 6 months. Do I still pay 7.5k? Please advise

Thanks
Aleixo

[Carlo1460]

Hi

You can pay off your loan early at any time, and you’d only be charged interest for the length of time you’ve had the loan, based on the balance and amount accrued by said pay off date.

There’s no other fees for paying off your loan early.

Hope this helps

[andrew_fishy (Biggest horse fanatic in Leeds)]

Just going off this, I have had a loan before for a couple days of £400, there were supposedly no interest/fees IF I paid it back within 14 days and I had to pay an extra £8, which ofcourse makes sense as I did borrow it for a few days, but could you explain a little more as to why it states it’s interest free if paid ithin 14 days, but in my experience it wasn’t?

Sorry to Hijack the thread

On nvm, I am just terrible at maths - I got the loan on Jan 4th for £400, paid it back in Full on Jan 20th for £403.68, so that is outside the 14 day window. god i’m stupid

[Carlo1460]

That’s ok, could you link to where it said it was interest free?

Customers can cancel their loan anytime, but even within the 14 days, interest is still accrued and is required to be paid if they choose to cancel in that time.

If you’re able to show where it said interest isn’t charged if cancelled within 14 days, reach out to chat and explain and they’ll take a look.

How to cancel your credit card | moneyfacts.co.uk

It’s the same with other lending as you’ve technically had the money, you still need to pay what you’ve used so far.

With your case though, I’d reach out to chat and ask them to take a closer look.

[andrew_fishy (Biggest horse fanatic in Leeds)]

I must’ve got my wires crossed somewhere, or I thought it was “free” if cancelled. i.e, I didn’t fully read the T&C’s

Obviously, if you allowed free loans for 14 days, you wouldn’t stand to make a profit, so now I think about it. I probably misread something somewhere

I can’t get to the loan page currently as I have a loan active at the moment

[Anarchist (Press ‘Help’ search ‘Contact us’ or email help@monzo.com or call 0800 802 1281)]

@andrew_fishy

now I think about it. I probably misread something somewhere

I’ve never had a loan from Monzo, but I guess that you read a line about there being no fee if you cancel in the first 14 days. This would refer to early redemption fees (which Monzo wouldn’t charge you anyway) rather than interest.

It’s a bit confusing, but I suspect that the line is there as part of a regulatory requirement.

[JP1]

Can a sole loan repayment direct debit / Monzo debit be moved to be debited from a personal account to a joint account ?

[Carlo1460]

Unfortunately not, though you can pay it from a pot from your personal account so it’s set aside.

[Kerpensd (Scott kerpen)]

Can I ask, what would stop someone just taking out a higher loan than they need to get the lower interest rate and then paying back anything they don’t need. I am currently need a 5k loan, but the interest is double. For what you have you said, I could take a 10k load and pay back some?

[hdwrng]

A lot of people on this forum have done exactly that. Nothing is stopping them.

[Addzy]

Nothing, I did exactly this last year, took the loan out and paid back over a grand within minutes

[Ordog]

I’m another person that did this too.

@Kerpensd

Can I ask, what would stop someone just taking out a higher loan than they need to get the lower interest rate

Affordability would be the only thing that stops people - not everyone will be offered large loans. If Monzo allow you to have a loan for a larger amount where the interest rate is lower then go for it