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Paying off loan early?

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  • 25-01-2012 2:21pm
    #1
    Ogie16
    Registered Users Posts: 143 ✭✭


    Guys, I have a personal loan with aib due to finish in 2014.

    I now have money to pay off the balance in total.

    How do I do this?

    Is it ok to transfer money on AIB banking online & reduce the amount to zero. Or does it need to be closed off some other way?


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    #2
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Ogie16 wrote: »
    Guys, I have a personal loan with aib due to finish in 2014.

    I now have money to pay off the balance in total.

    How do I do this?

    Is it ok to transfer money on AIB banking online & reduce the amount to zero. Or does it need to be closed off some other way?

    Ring them up and ask for redemption figure to clear the loan. I wouldnt just go by online figure as interest may be due but has not been applied to the account yet as interest is accrued daily but applied monthly.

    There are no extra charges for clearing a variable rate loan early but if it is a fixed rate loan there would be extra charges.


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    #3
    Ogie16
    Registered Users Posts: 143 ✭✭Ogie16


    It's a variable rate loan. Thanks


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    #4
    Gareth2011
    Closed Accounts Posts: 579 ✭✭✭Gareth2011


    If they tell you the amount you think is owing ask them for discounted settlement figure . My wife got let off with 3600 from mbna just to clear the debt. She paid them 1900 from 5500 :eek:. You got nothing to lose by asking.


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    #5
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Gareth2011 wrote: »
    If they tell you the amount you think is owing ask them for discounted settlement figure . My wife got let off with 3600 from mbna just to clear the debt. She paid them 1900 from 5500 :eek:. You got nothing to lose by asking.

    Bad mark on the credit rating for that though as the bank had to take a loss on it. Marked "L" on the ICB as far as I am aware to show a loss. They will only do that in severe circumstances. The OP is in the opposite boat to sinking in debt. The bank will not take early settlement in this case.


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    #6
    Kenny Logins
    Registered Users Posts: 9,061 ✭✭✭Kenny Logins


    Ogie16 wrote: »
    Guys, I have a personal loan with aib due to finish in 2014.

    I now have money to pay off the balance in total.

    How do I do this?

    Is it ok to transfer money on AIB banking online & reduce the amount to zero. Or does it need to be closed off some other way?

    As chris85 stated above, call them and they'll give you the figure to close the account and tell how long it is valid for. If you just transfer the amount outstanding on the statement, the standing order may not be cancelled automatically.


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    #7
    Ogie16
    Registered Users Posts: 143 ✭✭Ogie16


    Thanks for the help


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    #8
    Gareth2011
    Closed Accounts Posts: 579 ✭✭✭Gareth2011


    chris85 wrote: »
    Bad mark on the credit rating for that though as the bank had to take a loss on it. Marked "L" on the ICB as far as I am aware to show a loss. They will only do that in severe circumstances. The OP is in the opposite boat to sinking in debt. The bank will not take early settlement in this case.

    Bad credit rating doesn't matter to us tbh we don't want another loan ever again and sure we been in trouble with creditors for years anyway so rating doesn't mean sh!t to us :D


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    #9
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Gareth2011 wrote: »
    Bad credit rating doesn't matter to us tbh we don't want another loan ever again and sure we been in trouble with creditors for years anyway so rating doesn't mean sh!t to us :D

    Fair enough but credit rating means something to others. Not good sense for someone to ruin their credit rating without reason.


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