Loan- do I have to withdraw it all

[Havana]

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!

 

[ClubMan]

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.

 

[Seagull]

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?