When you take out a loan with Credit, the total amount you repay may be higher than the amount you originally borrowed. This is due to interest and, in some cases, late payment penalties.
Loan interest
Every loan includes an interest rate, which represents the cost of borrowing money.
The interest rate is calculated based on several factors, including:
The loan amount
The repayment term (longer terms may have higher rates)
Your credit profile
Your payment history
These costs are shown clearly and transparently before you confirm your loan, so you know exactly how much you’ll need to repay.
Late payment penalties
If you don’t make your payment by the due date, the loan is marked as overdue and a penalty of up to 20% of the total debt may be applied.
This penalty:
Starts accruing from the day after the due date, and
Accumulates progressively over a maximum of 14 days.
This means the 20% penalty is spread across those 14 days. If you pay within this period, the penalty charged will be proportional to the number of days your payment was late.
How to avoid paying more
By paying your loan on time, you can avoid penalties and keep your total cost limited to the agreed interest shown when you requested the loan.
💡Tip: Reviewing the total repayment amount and due date before confirming your loan can help you keep your costs under control.