# Question about interest on a personal loan?

Ok so my question is, if I take out a loan for $11,000 at 28% interest over 36 months. And there is no prepayment penalty. And if I pay about half of it off within the first month. For the following months afterwards, say I pay off almost half of the 11k by the end of the first month. Then afterwards I start to make the normal payments of 400 something until I pay the rest off. Will I still be paying 28% for those other months. Or since I already paid almost half, will the interest will be much much less?

Any helps or advice would be great!!

I am already approved for this loan and need the money ASAP for family medical. The APR just seems ridiculous to me but I know I can pay off a large portion of it very quickly.

### 7 Answers

- EvaLv 78 months ago
The interest rate would not change but the interest amount would. It's foolish to take out a loan of this size at that APR. You should be able to get a much better rate taking a personal loan from a bank. You might want to look at Care Credit which charges a similar interest rate, but for some large balances they have a 0% interest rate for 6, 12, or 24 months depending on the amount.

- ScottLv 78 months ago
If you pay half of the loan in the first month, you'll still be paying 28% interest on the remaining half. Overall you will pay less interest because you will have reduced the number of payments you owe.

- Wayne ZLv 78 months ago
The rate will still be 28%. Interest is recalculated monthly based on the outstanding balance.

So, the amount of interest will be lower but the actual rate stays the same.

28% / 12 = 2.333% (monthly rate).

Each month, your interest will be 2.333% of the outstanding balance.

As your balance drops, the interest will be lower. However, the rate is the same.

- What do you think of the answers? You can sign in to give your opinion on the answer.
- Steve GuyLv 68 months ago
You should discuss that with the person giving you the loan/read the contract, but I’m going to guess that they still want as much profit out of you as possible so they still take the 28%. I know that the Sprint phone company used to have a payment plan that saved you money over 2 years but you could just pay it all off in the first month, but they’ve since caught that loophole and not allowed you to pay it off quickly. So I’d say look for a loophole like that if possible but there might not be one.

- Anonymous8 months ago
You'll still be paying 28% but since you owe less money, you'll owe less interest. Depending of course exactly how the loan contract is worded.