Dear PAO,

I obtained multiple loans from a lending institution. The loans have different due dates or maturities. I already started paying my first loan and have been religiously complying with my obligations. Last month, I was lucky that I accumulated extra income from my personal transactions, so I went to the creditor in order to settle my first loan. The lending institution, however, said that my payment will be applied proportionately to my multiple loans, to which I objected because my other loans were not yet due. They refused to fully apply my payment to my first loan. According to them, they have the absolute discretion or right to choose which loans my payment would be applied. Is this correct?