If you have a Daily Interest Loan:
Any additional payments, over and above your contractual repayments, to your loan will be applied to your account straight away and will reduce your total balance. This will also reduce the total interest you pay over the remainder of your loan, but your monthly repayment amount will remain the same. By making additional repayments your loan will be paid off quicker and will shorten the length of your loan term.
If you would like to reduce your monthly repayments, any additional payment can be applied as a partial settlement. Your loan term will remain the same and you will save interest over the lifetime of the loan but not as much interest if you were to reduce the loan term as detailed above.
If you have a Pre-Calculated Interest Loan:
Any additional payments, over and above your contractual repayments, to your loan will be applied to your account straight away and remain as a credit. If you would like these payments to be applied as a partial settlement, which will reduce your overall loan interest, thenlet us know.
You have two options of how your partial settlement can be applied to your loan.
Option 1: you can use the payment to reduce your loan term, but your monthly payments will stay the same. You can save more on interest on this option as the loan term is shorter.
Option 2: you can use the payment to reduce your monthly payments, but your loan term will stay the same. With this option you will still save on interest over the life of the loan.
You can find information onotherways topayhere.
You can find the type of loan you have by logging into your Online Account This will tell you whether your loan is a pre calculated interest loan or a daily interest loan.