www.hardwarezone.com.sg - View Single Post - What does it mean by No Early Settlement Rebate?

mel1888 · 20-06-2019, 08:41 AM

GenuineSeller wrote:

Normal Case, Say $40K loan, 7yr, 2.28%... Interest payable $6,384 over 7yrs.

After paying for 36mths (3yrs), if you sell your car and make full redemption, the left over interest unpaid is $3,648.... based on Rule 78, you can get back Interest rebate of $2,102.96 (depending on T&C, there might be 20% penalty charge).

SO in your case, even if you sell your car.... you will need to pay $2,102.96.

After 36mths, full settlement amount is:-

Normal without 20% penalty....$24,402.18
Normal with 20% penalty.........$24,822.77
No rebate..............................$26,505.14

Does interest rebate mean the interest he saves?
If so why he still need to pay tho.

20-06-2019, 08:41 AM	#11
mel1888 Master Member Join Date: Dec 2015 Posts: 4,634	GenuineSeller wrote: Normal Case, Say $40K loan, 7yr, 2.28%... Interest payable $6,384 over 7yrs. After paying for 36mths (3yrs), if you sell your car and make full redemption, the left over interest unpaid is $3,648.... based on Rule 78, you can get back Interest rebate of $2,102.96 (depending on T&C, there might be 20% penalty charge). SO in your case, even if you sell your car.... you will need to pay $2,102.96. After 36mths, full settlement amount is:- Normal without 20% penalty....$24,402.18 Normal with 20% penalty.........$24,822.77 No rebate..............................$26,505.14 Does interest rebate mean the interest he saves? If so why he still need to pay tho.