Why pay off loans early?
It could save you money. If you have the funds available, you might want to repay your loan in full and save on some of the interest.
A little flexibility goes a long way when it comes to your finances. If you think you’d like the opportunity to repay your loan early, look for a loan that offers an early repayment option.
If you are considering paying off a loan early, its a good idea to think about paying off any other borrowing with a a higher interest rate first.
All loans from Sainsbury's Bank can be repaid early – and we offer flexible options for repaying. In our guide, we cover how to repay a loan early and any fees that may occur. Keep reading to find out more.
What’s included in an early settlement quote?
If you’d like to repay your loan early, you must request an early settlement quote to repay it in full. This will help you to see the full picture including any charges or outstanding balances on the loan. It'll show 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’ll continue to pay interest on the outstanding loan balance during this time.
Are there any early loan repayment charges?
It depends on the type of loan you’ve got and when you choose to payback your loan. The Consumer Credit (Early Settlement) Regulations 2004 allow lenders to charge up to 58 days interest when you decide to repay your loan in full early.
If you're nearing the end of the loan term, make sure that it’s worth making the early repayment and consider the interest you'll pay.
Looking to pay your Sainsbury’s Bank Loan off early?
You can request an early settlement figure through our online service.
What are my other loan repayment options?
If you have extra money but don’t want to pay your loan off in full, you can make an overpayment by either adding an extra lump sum or by making additional monthly payments.
At Sainsbury’s Bank, you can repay your loan early - in full or in part - at any time. Please note, fees may apply.