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.