Why is the first payment on my loan less than I was expecting?

Last Updated: 15 Dec 2015

The first payment made on your loan is generally interest only, even if you have structured your loan to make principal and interest payments. This temporary interest only period occurred because the first payment you made after your loan was advanced, was most likely not for a full fortnightly or monthly payment cycle but instead a shorter period. 

Your following payments will automatically adjust to an amount that will cover the scheduled repayment of your loan (the principal) and the interest that has been incurred during the repayment period.


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