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, you might want to use this money to repay your loan in full. You could end up paying back less interest.
Whatever your circumstance, if you decide to repay your loan early in full, you must request an early settlement quote.
What will be included in the early settlement quote?
This will tell you:
- the amount you still owe on your loan
- any early repayment charges (if any)
- the early settlement figure due
- the date you should pay the settlement figure by - the 'settlement date'
The quote will be valid for 28 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.
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:
- Contact us or:
- If you applied for your loan on or after 10th December 2017, you can request a settlement figure through our online banking or write to us at Sainsbury's Bank, PO Box 4955, Worthing, BN11 9ZA
- If you applied for your loan before 10th December 2017 you can write to us at Sainsbury's Bank Loans, Retail Account Processing, Tower House, Charterhall Drive, Chester CH88 3AN.
I have extra money but don't want to pay my loan off in full?
You can make an overpayment by either adding an extra lump sum or by making additional monthly payments. 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.