Settlement figure

Definition

A settlement figure is the amount your lender says will repay a loan in full if you pay it by a stated date. It is usually the remaining balance plus interest up to that date, less any rebate of future interest, plus any compensation the agreement allows on a fixed-rate loan.

The UK rules in brief (checked Oct 2026)

• If you ask, the lender must give you the figure within 7 working days.
• The rebate is worked out as if you settle 28 days after the lender gets your notice; on loans longer than a year it may be deferred by up to a further month.
• On fixed-rate loans, if you repay more than £8,000 early in 12 months, the lender may add compensation of up to 1% (0.5% if a year or less is left).

Sources: Consumer Credit Act 1974, section 94,section 95A and theConsumer Credit (Early Settlement) Regulations 2004. More detail: early settlement figures on UK personal loans.

Worked EXAMPLE (checked Oct 2026)

EXAMPLE Loan A (£8,500 · 24.9% · 48 months · EMI about £281.36) has about £5,277 of principal left after month 24 on a simple schedule. The lender’s settlement figure for a date 28 days later will not be exactly £5,277: it adds interest to that date and applies the rebate rules. Use the loan overpayment calculator to sketch paths, then ask the lender for the real figure.

Common mistakes

• Treating the balance on your last statement as the settlement figure.
• Paying after the date on the statement, when the figure may have changed.
• Assuming every loan has a large early repayment charge — on many it is small or nil.

What it is not

This definition is illustrative and is not a quote, legal advice or a promise of any rebate. LoanCalc Lab is not a lender. Last checked 14 October 2026.