Reducing loan value through internet banking

C

corcaigh2008

Registered User
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Hi guys,

In the next couple weeks i may need to apply for a loan of approx €5,000. My current account is with AIB and i was going to stick with AIB for the loan.

I also have online banking set up with AIB which i use on a regular basis. My query is with the loan would it possible to pay amounts into it online to keep reducing the balance outside ofthe normal repayments.

Lets just say the balance was €4,600 DR and i won €200 in a draw. Could i pay that into the loan a/c and bring the balance to €4,400. Would there be penaltys for this?

I'd like to tap away at it and try get the balance cleared before the full duaration if possible.
 
Depends on the terms & conditions of the loan. If it is a fixed rate loan then you will probably not be able to make such accelerated repayments without penalties being charged. For variable rate you MAY be able to do this.

Why are you sticking with AIB rather than shopping around to see if there is better value available?
 
I dunno, just thought it might be easier have everything with AIB. But i'd consider anywhere?
I see Tesco are offering good loans, you can pay off the loan early without penalty. But as its fixed rate you cant make payments like i want to do
 
You can do this with an AIB loan on AIB internet banking , i paid off a loan early using the online banking
 
Surely it depends on the specific loan and governing terms & conditions? I very much doubt that you can do this with an AIB fixed rate loan for example.
 
ClubMan said:
Surely it depends on the specific loan and governing terms & conditions? I very much doubt that you can do this with an AIB fixed rate loan for example.
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Clubman I'm sure you can pay off any loan early, fixed or variable rate?
 
I think you must pay a penalty for finishing a fixed rate loan early, but is there a penalty for variable rate?
 
Clarkey said:
Clubman I'm sure you can pay off any loan early, fixed or variable rate?
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Most or all fixed rate loans involved penalties for early redemption. Some variable rate loans may too. Variable/tracker rate owner occupier mortgages cannot by law charge penalties for early redemption. But we're dealing with unsecured loans here presumably.

corcaigh2008 said:
I think you must pay a penalty for finishing a fixed rate loan early, but is there a penalty for variable rate?
Click to expand...
Check the terms & conditions of any specific loan to find out.
 
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