What are my loan repayment options?
You’ll usually be able to choose the number of months or years over which you can pay back your loan. You’ll be expected to make monthly repayments based on the loan amount and APR. Some loans will have variable rate APRs where the interest rate you will be charged can go up or down; unlike fixed rate APRs which remain the same throughout your loan period. If you have a tight budget, a fixed rate APR could l help you plan as it offers set repayment amounts with no little surprises.
You should also have the option of making overpayments to get your debt down quicker. Any loans taken out after 1 February 2011 can be overpaid without you being charged (unless you decide to pay back a whopping £8,000 in any one year). You can make overpayments on loans taken out before February 2011 but you may be charged up to two months’ interest by the provider.
But if you decide you don’t want your loan at all, you have 14 days to change your mind (starting from the date you received or signed the agreement, whichever is later).