We use the daily simple interest method to calculate interest. That means interest is charged every day on the remaining principal balance and you only pay interest for the number of days that your loan has a balance. Below is information about how certain payments will affect your monthly payment, the amount of interest that you pay and the amount of your final payment.
- If you pay late, pay less than your amount due or miss a payment, you’ll accumulate more interest and your final payment will be larger as a result. In addition, payments that are not paid in full and on time may result in an event of default under your Varo Personal Loan Note. Also, late payments, partial payments, missed payments, or defaults on your loan may be reflected in your credit report.
- If you make your monthly payment early or you pay more than your amount due, your future monthly payments will stay the same, but you will pay less interest and your final payment will be reduced as a result.