SoFi offers a repayment plan on eligible personal loans that offers a lower monthly minimum payment requirement (interest-only) for the first 6 months. After the introductory period, the loan payment will increase for the rest of the term to pay off the principal as well as the interest.
In addition to this, you can still pay more on top of the minimum required interest-only payment if you choose to do so.
How does interest accrue for a Low Intro Payment Personal Loan?
Your SoFi Personal Loan uses simple daily interest, meaning interest is calculated each day based on your current principal balance. Since some months have 30 days and others have 31, your payment amount can vary slightly depending on how many days of interest accrued.
Can paying early affect my next payment?
When you make an early payment:
- More of that payment goes towards your principal balance
- This reduces the amount of interest that accrued afterward since interest is calculated on a lower balance
However, paying early can affect how the interest is spread. Because interest is accruing each day between your early payment and your original due date, your next payment might be a bit higher to make up for those extra days of interest.
What happens once the Low Intro Period ends?
Once the Low Intro Period ends, your loan will re-amortize. If any unpaid interest remains at the end of the Low Intro period, that unpaid interest will capitalize and be added onto your principal balance.
Have more questions? Chat with us or call 855-456-7634 to speak with an agent.