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How is interest charged on my loan?

Interest is applied to your loan using the rate and method set out in your individual Business Loan Agreement. The agreement also shows the total amount payable if you keep to the original schedule.

How daily interest accrues

Interest accrues daily against the outstanding balance, so as you repay, the balance falls and the daily interest falls with it — you only pay for what you owe, for the days you owe it. Whatever happens, the total cost of credit is capped at 100% of the original principal, so you will never repay more than twice what you borrowed.

Getting a breakdown or settling early

If you would like a current breakdown of interest and balance, request a statement of account. If you are thinking of settling early to reduce the interest you pay, see whether you can pay your loan off early. To understand how the daily rate works in practice, see our plain-English pricing explainer. If anything is unclear, contact us and we will explain it.

See also: Can I borrow again after repaying my loan?, Can I change my repayment date?, Can I consolidate two Creditcorp facilities into one?.

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