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Additional repayments on your loan and early repayment

06/10/2023 • 2 minute read

Abdalla Al-Faki

Sometimes a client comes to me saying that they expect a financial windfall. A tax refund, for example, or an inheritance or a pay rise. They want to use that extra money to pay off their personal loan. That’s always a smart choice, because additional repayments will save you money further down the line. They are often pleasantly surprised when I tell them that ABN AMRO lets them make additional repayments whenever they want without charging a fee for it.

Saving money

The biggest benefit of making additional repayments is that it will save you money. We use the additional repayment to reduce your outstanding loan balance. While it will not change your monthly payment, it will shorten the loan term. This means your repayments will end sooner. And at the end of the day you will pay less interest over the total loan term. Of course, you can also repay the loan early in one single repayment. You will then not pay any more interest and repayments, and your loan will be settled in one single transaction.

Added benefit

Additional repayments can also work in your favour when you are about to apply for a mortgage. This is because when we calculate your maximum mortgage, we look at any outstanding loans you have. If you don’t have any loans or only a small one, you can get a bigger mortgage.
Want to find out how much you can save by making additional repayments? Calculate your savings in four steps with our handy calculation tool.

Easy with iDEAL

At ABN AMRO, making additional repayments is easy to do online. Repay amounts of up to €50,000 using iDEAL, in the same way as you pay for your purchases online. It’s secure and easy in a familiar environment. The lower loan balance will appear in your overview as quickly as the next day. 

You can also make repayments by bank transfer. Your repayment will then be processed within 3 working days.  If you decide to repay your loan in full in one go, your loan will automatically be cancelled and removed from the Dutch Credit Registration Office’s (BKR) register after 14 days. BKR will retain your details for five years after that. Over this five-year period, other banks or official bodies will be able to see in your credit history that you had this loan.

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