Settlement figures for loans

[Andy Boz]

How do I go about obtaining a settlement figure for a personal loan, and what sort of amount would I expect to pay, on a loan of e.g. 3000 over 3 years. I realise the bank will want a bit more than the capital, but I dont want to get too ripped off.

Thanks

[alunrw]

Easiest way is just to ring the Bank or drop them a line - Depending upon the conditions you could probably expect to pay a couple of months interest payments on top of the unexpired loan payments - it also depends on how long is left on the loan - in my experience you would oviously have to pay more than the actual amount left, but its not a case of having ever felt totally ripped off.

[point&push]

head off to the Alliance & Leicester site - http://www.alliance-leicester.co.uk and select the Loans tab at the top, There's a calculator there. �3k x 36mths = �4,176 total repayment @ �116 per month.

Or give it a go yourself! Multiply the capital sum (�3000) by the interest rate (13.5 in this example) and divide the result by 100 to give the percentage figure - �405 which is one year's interest. Multiply that by the term of the loan in years (3) and add the �1215 to the �3k. Total repayment comes to �4215 so divide that by the term in months - 36 and you get an approximate figure of �117. It'll give you a rough idea of the repayment amount.