I'm looking for a personal loan from a bank or BS that does not include front end loading.
Barclays used to do a personal loan that was calculated on a daily interest basis, so that when you paid it off early, you didn't end up paying through the nose for the loan because you paid up early. Most lenders still apply the formulae from the 1974 consumer credit act which means you get a rebate off the amount of interest applied at the beginning of the loan but this generally means you end up paying a higher APR just because you've paid the loan early. Does anyone know of any bank/BS that does not front end load their personal loans and has a competative APR?
Differing banks and finance house use slightly differing methods for calculating loan interest by enlarge many use an amotisation formular based on whats known as the Rule of 78 the Rule of 78 calculates repayments on a sliding scale of interest where by very little of the principal (the ammount you borrowed) is paid back in the early years this means the lender gets a high level of return in the early years as the outstanding ammount remain high, there;s plenty of ready reconer loan ammotiser's on line you could find a suitable one doing a search and then after investigating what's out there in the way of loans bang them through the calculator and it will give you your repayments ect. But remember these people ar'nt charities, they lend money to make money of you (lots of it)
