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Loans

Can I make additional payments to my loan?

Yes, you can make additional payments to your loan. How you do this depends on when you took out your loan.
Loan applications made on or after 11 June 2010
You can choose for your additional payment to be applied in one of two ways:

  • Reduce your monthly payment and keep the term of your loan the same, or
  • Keep your monthly payment the same and reduce the term of your loan.

Both options will give you an interest rebate, which means you will pay less interest overall on your loan, but you will get a greater interest rebate with Option 2. Please call us on 0345 600 6016* to tell us which option you prefer before making your payment. If you want it to be applied in the same way every time you make an additional payment, we can leave a note on your file so you don't have to call us every time you make a payment.

Loan applications made before 11 June 2010
Any additional payments made will be applied to your loan and may reduce the total number of monthly payments on your loan. However, there is no interest benefit to making an additional payment to your loan. This means that the amount of interest you pay on your loan will not reduce as a result of this payment.

Please note, that for all cases, if your account is in arrears, we will use any extra money you pay to clear your arrears first.

Making a payment
You can make your early settlement payment in the following ways:

  • Online Transfers via Faster Payment using your sort code and account number. Your account details can be found on a loan statement or within your account overview within online banking.
  • Debit card payments can be made over the phone on 0345 600 6016*. The debit card must be in your name and registered to your home address. We cannot accept payment by credit card. Lines are open Monday to Friday 8am - 10pm, Saturday and Sunday 9am - 5pm.
  • Cheques should be made payable to ‘Tesco Bank’ and write your loan account number and sort code on the reverse. Post cheques to Tesco Bank, Loans PO Box 27014, Glasgow G2 9FE.

Calls may be recorded. *This number may be included as part of any inclusive call minutes provided by your phone operator.

Comments

I have just transferred an overpayment to my online loan account, the credit came off my balance immediately. The original balance includes the interest front loaded.

I've called the loans department to tell them I want the term reduced and to keep the payments the same, which they've noted on my account for future overpayments

When I asked about an interest rebate and will it come off my online balance, the rep said I won't receive an interest rebate.

How is that possible the total repayable interest is based on the number of payments at a set rate. I will no have less payments to make hence less interest to pay back?? Thanks

Hi Chris4545, thanks for getting in touch. If you have made an over-payment and not paid the loan off early, there would be no interest rebate as the payment would be deducted from the total amount you still owe us. Whereas, if you were to pay the loan off early, you are charged 2 months’ worth of interest then you may get a rebate of any interest you’re due back - Lewis

 

 

Thanks lewis, so reducing the term is totally pointless then? I might as well reduce the monthly payment and use what I save towards something else?

Are you saying if I pay the loan off with overpayments in 20 months I'll pay the same amount of interest as I will for the full term of 60 months?. Can I have my £2500 refunded in that case as the overpayment is absolutely pointless to me and only benefitting Tesco bank. The statement below says the opposite you do receive an interest rebate.


@Amanda_C wrote:

Yes, you can make additional payments to your loan. How you do this depends on when you took out your loan.
Loan applications made on or after 11 June 2010
You can choose for your additional payment to be applied in one of two ways:

  • Reduce your monthly payment and keep the term of your loan the same, or
  • Keep your monthly payment the same and reduce the term of your loan.

Both options will give you an interest rebate, which means you will pay less interest overall on your loan, but you will get a greater interest rebate with Option 2. Please call us on 0345 600 6016* to tell us which option you prefer before making your payment. If you want it to be applied in the same way every time you make an additional payment, we can leave a note on your file so you don't have to call us every time you make a payment.

Loan applications made before 11 June 2010
Any additional payments made will be applied to your loan and may reduce the total number of monthly payments on your loan. However, there is no interest benefit to making an additional payment to your loan. This means that the amount of interest you pay on your loan will not reduce as a result of this payment.

Please note, that for all cases, if your account is in arrears, we will use any extra money you pay to clear your arrears first.

Making a payment
You can make your early settlement payment in the following ways:

  • Online Transfers via Faster Payment using your sort code and account number. Your account details can be found on a loan statement or within your account overview within online banking.
  • Debit card payments can be made over the phone on 0345 600 6016*. The debit card must be in your name and registered to your home address. We cannot accept payment by credit card. Lines are open Monday to Friday 8am - 10pm, Saturday and Sunday 9am - 5pm.
  • Cheques should be made payable to ‘Tesco Bank’ and write your loan account number and sort code on the reverse. Post cheques to Tesco Bank, Loans PO Box 27014, Glasgow G2 9FE.

Calls may be recorded. *This number may be included as part of any inclusive call minutes provided by your phone operator.


@Amanda_C wrote:

Yes, you can make additional payments to your loan. How you do this depends on when you took out your loan.
Loan applications made on or after 11 June 2010
You can choose for your additional payment to be applied in one of two ways:

  • Reduce your monthly payment and keep the term of your loan the same, or
  • Keep your monthly payment the same and reduce the term of your loan.

Both options will give you an interest rebate, which means you will pay less interest overall on your loan, but you will get a greater interest rebate with Option 2. Please call us on 0345 600 6016* to tell us which option you prefer before making your payment.



 

We would need to check the specifics of your account to know how the payment was applied and how this would affect your account. It’s not something we can do through this channel, but if you give us a call on 0345 600 6016 (Mon - Fri: 8am - 10pm, Sat - Sun: 9am - 5pm) we can take a closer look. Sorry for any confusion this has caused - Lewis