How you repay your loan will depend upon the conditions set by your lender, and these can vary from product to product.

Some loans last for a few months, others for many years. A lender may ask you to make monthly repayments. Others, although this is rare, will allow you to pay annually.

Most lenders will build a redemption penalty into the terms and conditions of the loan. This means that, if you decide to repay your loan in full before loan period as come to an end, you will have to pay the lender an additional sum of money, usually an extra month's interest.

Flexible loans do exist, however. These will allow you to save money by repaying your loan early without any redemption penalties. But remember to take into account that the interest rate you are being offered in the first place with a flexible loan may not be as favourable as the rate attached to a standard repayment loan.