[Leeh1986]

I have made an overpayment on my Tesco loan online and I'm curious as to whether that will reduce the term or the monthly payment?

There is contradictory information available.

The 'Benefits of overpayment' section here https://www.tescobank.com/loans/paymyloan/
states

"When you make an overpayment it goes towards reducing the length of time you are borrowing for (unless you’ve asked us otherwise)."

However in the 'Further information' section at the bottom of my statement it states

"We'll use any extra money you pay to reduce your monthly repayments. You can also use the extra payments to reduce the term of your loan, however you have to tell us to do this"

So which option is actually the default and which has to be requested?

[KellyT]

Hi @Leeh1986, when you make an additional payment towards your loan, this goes towards reducing the length of time you are borrowing for. If you would like to reduce the monthly payments instead you will need to give our Loans team a call. They can be reached on 0345 600 6016 (Mon - Fri: 8am - 8pm Sat - Sun: 9am - 3pm).