Starting from 6.99% interest rate per annum
Interest at the interest rate above is calculated on a daily basis on the balance of the loan that remains outstanding, commencing on the day we advance the loan to you until the balance is repaid in full.
At the beginning of the loan we work out the total interest amount you will pay over the whole period of your loan using the reducing balance method, and we then add this to your outstanding loan amount in order to calculate your monthly Instalments so that we can make your Instalments equal during the term of the loan. This reducing balance method means that the amount of interest that you pay, as a proportion of your monthly Instalment, will decrease over the terms of the loan as the loan balance reduces.
We will not charge any interest on the interest you have accrued under your loan.