Loan question

[ahba_singh]

If let's say I have got loan from bank . Eg education .

I still owe bank $10k and repayment is 480 per month. Will it makes sense to clear off everything or rather continue to pay for these 2 more years ?

 

[Toni90]

Pay lah. Education loan rate very high.

 

[JuniorLion]

If let's say I have got loan from bank . Eg education .

I still owe bank $10k and repayment is 480 per month. Will it makes sense to clear off everything or rather continue to pay for these 2 more years ?

Pay it off. Don't owe the bank anything, they are sharks.

 

[luvalist]

what's the interest rate?
do you have money to pay off?

 

[ahba_singh]

I need check on the interest rate.

Yes I have the money to pay off since I started working and I have more than enough spare cash.

Assuming I slowly pay , I can use the 10k to put on bond or shares. But I am afraid the interest rate outspend my earnings

 

[fulat1]

Not worth to prolong this loan. From the source, education loan will comes out 4% - 5% various from different banks. Hence, if you have $ then just paid it off.

moneysmart.sg/education-loan

 

[Soul77]

Last time I took edu loan, it was pegged to prime rate + 0.x%. I think pay off asap better.

 

[rosschang]

not sure about edu loan, but if the loan interest is amortized daily/monthly/yearly base on your remaining principle, then it's worth paying it off earlier, just like housing loan.

If its like car loan, there isn't any difference as the interest is already calculated in.