Frequently Asked Questions

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  4. If the loan has ‘daily interest’ how does this work?

If the loan has ‘daily interest’ how does this work?

Daily interest is calculated against the outstanding balance of the loan 💷

  • That is because interest is calculated as a ‘percentage’ of the balance.
  • When the balance of the loan is higher in the early stages of the loan term, more interest is being accrued against that higher balance.
  • As you make more payments and the balance starts to drop, there’ll be less interest.
  • If you make extra payments on top of your monthly repayments, you can reduce your loan balance faster, which will save you money.
  • So you don’t have to repay the balance in full to save yourself a bit of money along the way.

 


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