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What is a loan statement

A loan statement provides a snapshot of your loan within a specific period. Similar to a bank statement, it displays the amount you owe and tracks how it changes over time, rather than showing the money you have.

WHAT A LOAN STATEMENT TELLS YOU

Looking at a loan statement helps you see:

  • How much you originally borrowed

  • Your opening balance (what you owed at the start of the period)

  • Repayments made during the period

  • Missed payments during the period

  • Interest charged (in addition to interest that forms part of your regular repayments)

  • Fees or charges (applied to your loan)

A loan statement lets you:

  • Track how much you still owe

  • Check that repayments have been applied correctly

  • Understand the long-term cost of the loan

  • See how increasing or decreasing repayments affects the total amount you will ultimately pay.

WHAT IS A CLOSING BALANCE

When you look at your loan statement, the closing balance can be confusing, because it’s not the amount you’d need to pay if you wanted to pay the loan off today.

The closing balance is a projection. It reflects:

  • Your current loan balance plus

  • All the future interest and fees that are expected to be charged
    if you keep making repayments exactly as scheduled until the loan ends.

In other words, it shows what you’re expected to pay over the full life of the loan, assuming nothing changes.

WHAT DOES IT NOT SHOW

The closing balance is not:

  • A payout or settlement figure (known as a Payout figure)

  • The amount required to clear the loan today

If you paid the loan out today, you would usually pay:

  • The current principal balance

  • Plus any interest accrued up to today

  • Possibly an early-repayment fee (depending on the loan)

You would not pay the future interest. This would be credited back to you along with future monthly account fees.

Simple way to think about it

  • Closing balance on the statement = “What I’ll pay in total if I keep the loan to the end”

  • Payout figure = “What I need to pay to clear the loan today”

 You can find more information about payouts HERE.

IMPORTANT

The balance shown on a statement is for information and tracking purposes. It is not always the same as a payout amount, which we need to supply separately if you want to pay the loan off early.

To request a statement, please go HERE.