T&C’s are not as clear for my scenario. Can someone confirm if I want to clear my loan in full is the total interest included or only for the term I have the loan? Thank you
Interest is accrued daily, and if you repay early, you’ll save on the interest and have reduce payments if making lump sums going forward.
It shows you full transparency up front so there’s no confusion.
If I remember correctly you can even go to the ‘pay off extra’ tab and put the figure in to see exactly what you owe if you did pay in full without committing to anything.
Thank you very much.
You can yes, it’ll show you a settlement figure. It won’t specifically state how much interest you’ll save but you can just work out the difference between the settlement figure and the current balance.
Only for the term you borrowed the money.
I can confirm that when I took out a loan I could pay it off whenever I wanted to, in dribs and drabs or all at once, all within the app and there are tools to fiddle about with and visualise your options clearly.
If you want to take out a loan today and then pay it off tomorrow, you just pay for 1 day of interest. No fees whatsoever. Obviously that’s not a use case but just an illustration of how it works.
I had a lot of dumb loans with other banks over my dumber years and every single one had some kind of catch, like if you want to settle your loan no problem - you just need to pay off 5 years worth of interest as well as that is what the slimey bank would have received had you not settled. Or yeah you can overpay to reduce the amount you owe but you need to pay 60 days worth of interest as a penalty, for no apparent reason other than to make you not want to pay down the loan and let them keep milking you. Or you want to know how much it will cost to settle the loan, just phone our terrible call centre for ages where we will add some extra friction to your decision making process.
The Monzo loan product is great and their loans epitomise what Monzo is as a brand.