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LairaPlus Loan App

Free

In Nigeria    V1.0.1.2

5.0 (1 million +)

Security Status

in Nigeria

LairaPlus APP

Best loan app

in Nigeria

Free

In Nigeria   V1.0.1.2

5.0 (1 million +)

Security Status

Can you have overpayments on personal loans applied to the principal with most lenders?

Whether you can have overpayments applied to the principal of a personal loan depends on the specific terms and policies of the lender. Here are some key points to consider:

  1. Lender Policies: Some lenders allow borrowers to make overpayments that are applied directly to the loan principal, reducing the outstanding balance. Others may not permit this, or they may have restrictions on how overpayments are applied.

  2. Prepayment Penalties: Before making overpayments, check your loan agreement for any prepayment penalties or restrictions. Some loans may have penalties for paying off the loan early or for making additional payments.

  3. Communication with Lender: If you wish to apply overpayments to the principal, it’s advisable to communicate with your lender. Ask them about their policies for handling overpayments and how you can ensure that the extra funds are directed toward reducing the principal balance.

  4. Interest Savings: Applying overpayments to the principal can lead to significant interest savings over the life of the loan. By reducing the principal balance, you’re effectively reducing the amount on which interest is calculated.

    LairaPlus Loan App

    Free

    In Nigeria    V1.0.1.2

    5.0 (1 million +)

    Security Status

    for Android

  5. Accelerated Loan Payoff: Making overpayments directed at the principal can help you pay off the loan faster. This can be particularly advantageous if you’re looking to become debt-free sooner or save on interest costs.

  6. Consistency: If you plan to make overpayments, it’s a good practice to do so consistently to maximize the impact on the principal balance.

  7. Documentation: Keep records of your overpayments and any communication with the lender. This can be useful for tracking your progress and resolving any discrepancies.

To find out the specific policies of your lender and how overpayments will be handled, review your loan agreement or contact the lender’s customer service department. Additionally, confirm whether there are any fees or penalties associated with making extra payments or paying off the loan early. Applying overpayments to the principal can be a smart financial move, but it’s essential to understand the lender’s policies and the potential impact on your loan terms and interest savings.

LairaPlus Loan App

Free

In Nigeria   V1.0.1.2

5.0 (1 million +)

Security Status

in Nigeria

LairaPlus APP

Best loan app

in Nigeria

Free

In Nigeria   V1.0.1.2

5.0 (1 million +)

Security Status

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