| Daily interest is calculated using the outstanding balance of the loan multiplied by a daily interest rate. When the balance of the loan is higher in the early stages of the loan term, more interest is being applied. As you make more payments and the balance starts to drop, there’ll be less interest. Although we calculate interest daily, we only add it to your loan once a month. You can see the amount of interest charged on your annual statement. 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. |