We encourage borrowers to pay off loans as quickly as possible in a financially responsible way to help them save on interest. Most lenders have the opposite approach and want borrowers to keep the money for as long as possible
When you make payments that are slightly higher than your monthly installment, they are applied towards your future installments, we apply it to both principal and interest and not just the outstanding principal. We decided to do it this way to keep it simple and straightforward for borrowers.
For e.g., if you make a payment $10 higher than your monthly installment, you can choose to pay $10 less for the next installment. This keeps the calculation simple and you know exactly how much you have to pay next month.
How to save on interest:
The best and simplest way to save the most on interest is to make monthly payments while saving for a future loan pay off. After a few months, when you have saved enough funds to pay off the loan, just click the "Pay Off Loan" button.
*We don't charge any prepayment fee and make it fast and easy to pay off the loan with just 1 click.