# How much interest do you pay on your loan?!



## Je5580 (15 Jan 2014)

I was shocked to find out recently that for every £250 I pay (PCM), *£110* goes on interest!!  Wish that they had explained this when I took out my loan! I think it's about 22% APR. Just wondering if this is the standard interest that Credit Unions charge? Thanks


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## RainyDay (15 Jan 2014)

Do you want to give a bit more information on the amount of the loan, the balance outstanding and the duration of the loan? 22% APR is very unlikely for a CU loan.


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## Je5580 (15 Jan 2014)

Hi Rainy! I thought it was a bit much!

Outstanding loan: £6213
Shares: £1900
Term: 42 months
APR: 21.94%

Does that sound right?


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## Je5580 (15 Jan 2014)

Sorry, outstanding loan was £5578, new loan applied for £635 = £6213!


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## MC D (15 Jan 2014)

Credit Unions cannot charge more than 12% per annum  The interest been charged on your loan should be on your credit agreement.


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## vandriver (15 Jan 2014)

Is the loan relatively new?Because at the start of a loan,there would be a higher interest charge as you owe more.


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## vandriver (15 Jan 2014)

Is this an English cu ?


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## Je5580 (15 Jan 2014)

Hi Empty, yes it states on my credit agreement that the APR is 21.94%!
Van It is a Welsh CU. It is quite a new loan, does that affect the APR? Thanks for your replies


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## Brendan Burgess (15 Jan 2014)

HI Je

Askaboutmoney is an Irish website.  You will need to find a UK website such as motleyfool.co.uk to get an answer to your question.

Brendan


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## Je5580 (15 Jan 2014)

I have probably been a bit naive, just assuming that the interest was really low without checking things through properly


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