Monthly Repayment Loans
Everything you need to know about monthly repayment loans
Monthly repayment loans
A monthly repayment loan allows you to spread out your payments over a period of time to help you afford the things you need right now. Repayments for the amount you borrow will be split over an agreed number of months, so you’ll have a clear idea of how much you’ll be paying back each month.
|Duration of the agreement:||5 years|
|Total amount payable:||£8,155.20|
|Interest rate:||3.40% p.a. (fixed)|
Paying back your loan
How much you pay back each month for your Royal Bank of Scotland loan and the length of time over which you’ll be making the repayments can vary. Online tools, such as our Loan Calculator can be used as a guide to help you work out which loan is right for you and your own personal circumstances, as well as how much you can expect to pay back each month.
The amount you pay back each month will depend on the length of time over which you’ll be repaying your loan, as well as the amount borrowed. The shorter the lending period, the less you will pay back overall, but the higher the monthly repayments will be.
If you were to borrow the same amount, £3,500 over a longer period of 5 years, you would be paying £89.43 each month, with the total amount payable adding up to £5,365.80.
* Representative 19.9% APR
The minimum term is 12 months and the maximum term over which you can pay the loan back varies between 5 years (60 months) and 7 years (84 months). In some cases, home improvement loans over £2,500 may be extended to a term of up to 10 years. You can borrow a minimum of £1,000 and up to maximum of £50,000.
A tool such as our Budget Calculator can help you work out how much you can afford to pay back each month so you can get the loan best suited to you.
Missed monthly repayments
If you miss one of your monthly Royal Bank of Scotland loan repayments, you may be charged a late payment fee. In the event that you do miss a payment, your credit score could be negatively affected and this, in turn, could affect any future applications for credit.
It may be possible to extend the term of your loan if you are unable to keep up with monthly repayments. This will lower the monthly repayment but will increase the total amount payable overall due to the added interest.
Making early repayments
You may pay off part or all of your loan at any time, but you may incur fees for doing so. These fees can include any interest you already owe as well as up to 58 days interest on the amount that you pay early. In the case that you make an additional payment, you will still be required to continue to pay your monthly repayments.