The loans thread!

[R3ddot]

Hi

 

Read up post on early redemption. But after calculation it seems 1 year redemption only incurs 1+% percent. Pls advice what did i do wrong?

 

Loan 50K

Loan 6 years

Interest 2.28

Early redempt 12 months

 

Total interest 6840

Interest rebate = (60*61/72*73) * 6840 = 4763

80% rebate = 3810

bank fee 20% = 0.2 *4763 = 953

Admin =500

Outstanding = 45556 (based on loan calculator)

Paid for 12 months = 789 * 12 = 9468

 

Total = 9468 + 45556 + 500 + 953 - 3810 = ~50666

 

The interest is only $666?

 

Doing this to compare on the UOB24 plan where charges are waived

TIA!

 

[pengu]

  On 5/1/2019 at 7:42 AM, R3ddot said:

Hi

 

Read up post on early redemption. But after calculation it seems 1 year redemption only incurs 1+% percent. Pls advice what did i do wrong?

 

Loan 50K

Loan 6 years

Interest 2.28

Early redempt 12 months

 

Total interest 6840

Interest rebate = (60*61/72*73) * 6840 = 4763

80% rebate = 3810

bank fee 20% = 0.2 *4763 = 953

Admin =500

Outstanding = 45556 (based on loan calculator)

Paid for 12 months = 789 * 12 = 9468

 

Total = 9468 + 45556 + 500 + 953 - 3810 = ~50666

 

The interest is only $666?

 

Doing this to compare on the UOB24 plan where charges are waived

TIA!

Your total calculation is wrong, should be

9468 + 45556 + 500 + 953 - 3810 = 52667

 

Meaning bank earns $2667 from you if you in total if you decide to pay after 1 year

[R3ddot]

  On 5/1/2019 at 10:50 AM, pengu said:

Your total calculation is wrong, should be

9468 + 45556 + 500 + 953 - 3810 = 52667

 

Meaning bank earns $2667 from you if you in total if you decide to pay after 1 year

Sorry, the outstanding should be 43556 instead of 45556.

 

So the overall is 50667. ==> 667 as interest???

[Dark]

  On 5/1/2019 at 2:19 PM, R3ddot said:

Sorry, the outstanding should be 43556 instead of 45556.

 

So the overall is 50667. ==> 667 as interest???

 

The outstanding amount (43556) has already factored in the interest rebate so you have double-counted the 3810 rebate.

[R3ddot]

  On 5/1/2019 at 2:33 PM, Dark said:

The outstanding amount (43556) has already factored in the interest rebate so you have double-counted the 3810 rebate.

 

I see! Thanks for the clarification and help to both

[Ct3833]

Comon sense but may still be useful to those who are considering buying a car and are new to car loan .

 

Read This Before Getting A Car Loan In Singapore

 

https://sg.style.yahoo.com/read-getting-car-loan-singapore-145830887.html

Edited July 14, 2019 by Ct3833

[Stevekk]

  On 7/14/2019 at 4:21 AM, Ct3833 said:

Comon sense but may still be useful to those who are considering buying a car and are new to car loan .

 

Read This Before Getting A Car Loan In Singapore

 

https://sg.style.yahoo.com/read-getting-car-loan-singapore-145830887.html

Very useful read

[Stevekk]

Btw, is it true that buying of renew COE cars can only loan from private banks?

[GTO-1]

  On 7/14/2019 at 4:21 AM, Ct3833 said:

Comon sense but may still be useful to those who are considering buying a car and are new to car loan .

 

Read This Before Getting A Car Loan In Singapore

 

https://sg.style.yahoo.com/read-getting-car-loan-singapore-145830887.html

Might be a silly question: I actually wonder if doing full redemption of a loan negatively affects your credit score.

 

Recently paid off my loan after having it for 4 months. I had enough cash and it would save me $3-4k over a 4 year period. I was penalised and required to pay back a proportion of the interest, but by my calculations, I actually broke even since the AD would have penalised me if I didn't take a loan in the first place.

 

Thing is, the bank expects to make, say, $6k off me, but only really made $1k. Makes me a pretty crappy customer since that's not probably not enough to pay off the on-costs or administrative costs. Pretty sure the bank doesn't care, since I'm small fry, but there is an argument to be made over it affecting my credit score.