How to settle your loan early
All about settling your loan and how to do it
Answers to all those questions you might have about settling your loan.
Yes, you can settle and close your loan account at any time during the loan term by asking us for an early settlement figure.
If you’re looking to pay it off early but not all in one go, you can make additional payments with no fee at any time during your loan to help reduce your loan term.
Yes, there’s a fee of up to two months interest. But the full amount you pay back may also include an interest saving.
There's no charge if you decide to reduce your term through overpayment.
When you settle your account early, you’re reducing the length of time you are borrowing for. This means you may pay less interest, which would save you money overall.
The amount you could save is unique to your loan and will vary depending on the size of your loan and how many payments you have left. When you request an early settlement figure we'll let you know how much you'll save.
An early settlement figure is the amount you’d need to pay to settle your loan. It includes:
- The balance remaining on your loanThe balance remaining on your loan
- The interest you’ll save from settling your loan earlyThe interest you’ll save from settling your loan early
- An early settlement charge of up to two months interestAn early settlement charge of up to two months interest
Just use our online Early Settlement Form. We’ll let you know the amount you’d need to pay to settle your loan early by email in around an hour. We’ll also send it through the post in less than a week.
Alternatively, you can get in touch with our Community or call us.
Your settlement figure will be valid for 30 days from the date you ask for it.
Your settlement figure will be valid for 30 days from the date you asked for it.
Once you’re ready, you can make your final payment by:
- Bank transfer – pay straight from your bank to your loan using your Tesco Bank loan account details.
- Online loan payment – this lets you make fast, simple loan payments.
- By cheque - make it payable to ‘Tesco Bank’ with your loan account details written on the back. Please post cheques to Tesco Bank, Loans PO Box 27014, Glasgow G2 9FE.
If you’d like to make a payment from an account that is not in your name or address, you can only do this by bank transfer or cheque.
Once your payment has cleared we'll cancel your Direct Debit and close your account within 7 working days. We’ll send you confirmation of your account closure along with a closing statement in the post. It's important we have your correct address to get this to you. If you think it might be out of date you should update your personal details as soon as possible.
If you've made a scheduled monthly payment between the date you got your settlement figure and now, you should take off your monthly payment amount from your early settlement figure before you make the payment.
Remember, your early settlement figure is valid for 30 days from when you ask us for it.
No, we’ll cancel the Direct Debit for you as soon as your final payment has cleared. If you end up making an overpayment, we’ll return the money to you within 8 working days.
At the start of your loan, a higher amount of your monthly repayment is put towards repaying interest. But as time goes by, we start to use less of your monthly repayments to repay interest and more towards reducing the capital until your loan is completely repaid.
This means the early settlement fee of up to two months interest will vary in amount according to the size and time left on your loan at the time you choose to settle.
Once your payment has cleared we'll cancel your Direct Debit and close your account within 7 working days. We’ll send you confirmation of your account closure along with a closing statement in the post. It's important we have your correct address to get this to you. If you think it might be out of date you should update your personal details as soon as possible.
If you end up making an overpayment, we’ll return the money to you within 8 working days.