Settlement information
What is a settlement figure?
A settlement figure is the total amount you need to pay, if you want to pay off your loan early.
Important information about your settlement figure:
- Valid for 28 days from the date you request it.
- Not a commitment – asking for a quote doesn’t mean you must pay it.
- Any monthly repayments that are due during the 28-day period will still need to be paid. This is because the settlement calculation has assumed that they will be paid.
- You can request a new settlement figure if your balance changes after making a payment. Your updated figure may be lower, so you’ll know the most accurate amount needed to clear your loan.
You can use your online Plata account to:
- Pay your loan off in full or,
- Make a partial settlement.
How is a settlement figure calculated?
We completely understand that settlement figures can feel confusing. This is because they include both:
- An interest rebate you may be entitled to, and
- Plata uses 58 days of early-repayment interest, as permitted under the Consumer Credit Regulations 2004 for this type of loan.
Your settlement figure is based on the structure of your loan (which is that the interest is front-loaded) minus any interest rebate you may receive, plus the permitted 58 days of interest. Any repayments that are due during the 28-days that your settlement figure is valid for, must still be paid.
The early‑settlement calculation is defined in Schedule 2 of the Consumer Credit Regulations 2004.
The calculation is set out in the Regulations – not created by Plata.
Most customers are surprised at how technical it is, which is why settlement figures can seem hard to calculate.
Here is the link if you would like to see the official calculation.
1 - An interest rebate
If you repay early, you may be entitled to receive some of the interest back.
This is known as an interest rebate or interest saving.
2 - 58 days of early‑repayment interest
This is not a penalty or a fee.
It is permitted by the Consumer Credit Regulations 2004 and is often called “early‑repayment interest.” Plata always includes 58 days, in line with these regulations.
Your final settlement figure includes:
- the rebate you’re entitled to, (this reduces the outstanding balance),
- plus, the permitted 58 days of interest.
- this results in your final settlement amount.
How are monthly repayments calculated?
Each monthly repayment includes:
- Capital - the amount you borrowed.
- Interest - the cost of borrowing.
Interest is added to the capital at the start of your loan, and the total amount is then divided by the number of monthly repayments in your loan term.
Plata loans are front-loaded with the interest, which means that:
- in the early payments, a larger portion of your repayment goes toward interest.
- in the later payments, more of your repayment goes toward the capital.
This is a structural feature and not a hidden fee.
Good to know
- You’ll never pay more than the total amount payable shown in your loan agreement.
- If you repay early, you may still be eligible for an interest rebate.
Thinking about repaying early?
Early repayment can save you interest overall.
Plata loans have a minimum term of 12 months, so customers seeking short‑term borrowing may find other products more suitable.