Can I repay my loan early?
When you take out a loan, you will choose how many months or years you want to pay it back over. However, over time your financial situation may change and you might find yourself in a position where you want to repay your loan early.
We all like a little flexibility when it comes to our finances so if you think you might like the opportunity to repay early, look for a loan that offers an early repayment option.
All loans from Sainsbury’s Bank can be repaid early.
Why repay your loan early?
- If you find yourself with some unexpected funds one month for example, you get a bonus at work, you might want to put this money towards repaying your loan faster. This is referred to as an early repayment in part.
- Otherwise you might want to repay the loan in full. For example, if you took out the loan to cover the cost of a car which you then sell.
Whatever your circumstance, if you decide to repay your loan early (in part or in full) you could reduce the amount of interest owed overall.
How is interest recalculated?
If you decide to make an early repayment we will provide you with an early settlement quote. This will tell you:
- the amount you still owe on your loan
- any reduction in the total amount of interest
- any early repayment charges
- the early settlement figure due
- the date you should pay the settlement figure by - the 'settlement date'
The quote will be valid for up to 30 days. This gives you time to consider the figures and decide whether you want to go ahead with the early repayment. You will continue to pay interest on the outstanding loan balance during this time.
Are there any early repayment charges?
The Consumer Credit (Early Settlement) Regulations 2004 allow lenders to charge up to 58 days interest in the event that a customer decides to repay their loan in full early.
Any charges will be shown in your early settlement quote.
If you're nearing the end of the loan term check that it is worth making the early repayment, considering the interest you’ll pay.
How do I make an early repayment with Sainsbury’s Bank?
If you’re an existing loans customer and would like an early settlement quote, please contact us by:
- Calling 0800 169 85 03* or:
- Writing to us at Customer Services, House Charter Hall Drive, Chester CH88 3AN.
If you’re not sure how much you still have left to pay, we can also confirm your outstanding balance.
I want to increase my monthly repayments
If rather than finding yourself with a one off lump sum, you find that you have extra money every month, for example you receive a pay rise, you might want to pay off your loan faster by increasing the amount of your monthly repayments.
Most loan providers will refer to this as an overpayment. If you think this option might be more suitable see our guide to making overpayments.*Telephone calls may be monitored or recorded for quality control procedures.