Early Settlement Information
What is a settlement figure?
A settlement figure is the amount you would need to pay off your loan early.
- It is valid for 28 days from the date you request it.
- It includes any interest savings (also called an interest rebate) you may be entitled to.
You can use your online account to:
- Pay your loan off in full or,
- Make a partial settlement
Requesting a settlement quote online does not commit you to anything. If you change your mind, that is okay, there is no obligation to go ahead.
If you decide to make a settlement, you have 28 days from when the quote was generated to make a payment.
Please keep in mind that any regular monthly repayments due during this time will still need to be made.
What is an interest rebate?
If you repay your loan early, you might be entitled to a refund on some of the interest. This is called an interest rebate or interest saving.
The settlement figure we provide is calculated based on rules set out in the Consumer Credit Act 1974 and not a formula of our own.
How are monthly repayments calculated?
Each monthly repayment is made up of two parts:
- Capital - the amount you borrowed
- Interest - the cost of borrowing
Interest is added to the capital at the start of your loan, and the total is then divided by the number of monthly repayments.
Our loans are front-loaded, which means that in the early months, a larger portion of your repayment goes toward interest. As your balance reduces, more of your repayment goes toward the capital. This is a structural feature and not a hidden fee.
Good to know
- You will never pay more than the total amount payable shown in your loan agreement.
- If you repay early, either in part or in full, you may still be eligible for an interest rebate.
Thinking about repaying early?
Bamboo offers loans with a minimum term of 12 months. While repaying early can save you interest, if you are looking for a short-term borrowing option, there may be other products more suited to your needs than a Bamboo loan.