Possible Change from BOI Grad to Tesco Loan

Hi all,

I have a loan of approximately €27,000 which I used for educational and travel purposes. I am paying a Bank of Ireland graduate loan at 8.7% APR. (Variable)

Since I've started working in banking I've become more aware of the better rates out there and I'm considering switching to a tesco loan at 6.9% APR fixed over 5 years. The tesco website FAQ states that under the "can I pay it off early?" question that "Yes. Simply call the Tesco Loans Helpline on 1850 520 520 and the full amount of your loans outstanding will be calculated and you will be advised of the amount payable to close the account."

In most fixed rate loans the usual ABC charge applies if paid off early, why is this not the case with Tesco? Also do any posters have any reason why I shouldn't switch? I have seen one or two negative comments regarding Tesco loans, but I am finding it hard to weigh this too negatively, as my current monthly payment is €628 which a tesco loan would reduce to €530.

What is everyone's thoughts? Many thanks in advance.

If switching you don't want to be doing it in a hurry as there admin is terrible and it can take quite a while and many many phonecalls to finalise the loan.

Tesco (RBS/Ulster Bank/whoever) tend to be quite picky about who they lend to-other than that I don't see why you wouldn't switch. If you are a credit union member you may find their rates quite competitive.