Yes, we have changed our repayment process. These new changes aim to help borrowers save more on interest by allowing them to make larger installments to reduce their loan balance.
Before: If you paid more than your monthly installment it would roll over to your future month's payments (covering both interest and principal).
Old E.g. If your monthly installment is $500, but you posted a payment of $1,000. That would cover two months installments. Meaning you wouldn't have to make an additional payment the following month.
Now: When you pay more than your monthly installments, it goes towards only your principal, reducing your loan balance and the amount of interest that you pay overall on your loan.
E.g. If your monthly installment is $500, but you posted a payment for $1,000. The additional $500 that you paid would go towards principal and would reduce your loan balance.
You would still be required to post a payment the following month, but you would see a reduction in your loan balance, and interest, as a result of the extra amount paid.
Why the change?
We felt this change was inevitable, it is the industry standard and helps borrowers save money. We received lots of feedback from our borrowers and took their feedback and put it into action. Helping borrowers save money was an easy choice to make!