Loan- do I have to withdraw it all

I applied for a loan through AIB 24hr banking. I have a loan with them already on which I owe a couple of hundred quid. I applied for €5000 to pay off the remainder of this loan and my credit card. In the meantime I got tax back so was able to pay this off the card. This means I only need €4000.

The problem is that the interest rate for €4000 is higher than for €5k so I don't really want to reapply for a smaller loan. Plus I have budgeted for the repayments on €5k and so will have the €4k paid off sooner now. The money will be lodged into my present loan account. What I want to know is will there be a problem if transfer less than the €5k out of the account. If so would it be possible to withdraw it and immediatley pay it back in?

Hope this all makes sense and thanks!

What sort of loan? If it's a variable rate loan and the terms & conditions allow for accelerated repayment without penalty then presumably you can take the full €5K but immediately clear €1K. But why don't you want to alter the loan application and just take €4K instead? It might simplify matters and keep you out of temptation.

I would imagine they have something in place to cover themselves against this, as otherwise everyone would take a loan of 5K to get the lower rate. How much lower is the rate?