Can I make overpayments on my loan?
When you take out a loan, the amount you'll pay back each month will be worked out based on the amount you decide to borrow and the period of time in which you choose to pay it back.
Over time your financial situation may change. You may find that you have some extra money each month or an extra lump sum which you want to use to pay off your loan faster.
All Sainsbury's Bank loans give you this flexibility, allowing you to add an extra lump sum or repay more each month than you originally agreed. We refer to this as an overpayment or partial early settlement.
Why make an overpayment?
- Making overpayments will reduce the loan term so you'll pay it back faster.
- You could also be entitled to a reduction in the total amount of interest owed.
How is the reduction in interest calculated?
When paying back more than originally agreed, either by making an extra lump sum payment or more each month, you will only pay interest on the outstanding balance of any loan. In order to do this you need to let us know in advance that you'd like to make an overpayment.
How to tell us that you want to make overpayments
Contact us. Lines are open 8am – 10pm Monday to Friday, 8.30am – 6pm Saturday and 9.30am – 5.30pm Sunday and calls are free from landlines.
Note that your original direct debit will still continue and you will need to set up a second payment method.
I want to repay my loan early?
If rather than having a little extra every month, you have a one off lump sum which you'd like to use to help repay your loan early in full, you might also want to learn more about making an early repayment.*Telephone calls may be monitored or recorded for quality control procedures.