Noob on loans

[vofzxy]

So i found the following in the respective websites....

Assume 10k loan. 1 year.

SCB Cashone illustrations show --
Applied / flat interest rate : 8.58%
Effective IR: 19.34%
EIR is calculated taking into account first year annual fee of $199

UOB
Flat rate : 4.25%
EIR : 10.61%
Processing fee : 1.5%

If tenor is 1 year, why both not the same ?
Got service chargees?

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[vofzxy]

Haha... I guess no ones around...

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[wahkao3]

what is your question? I dont understand?
u wanna compare the 2 loans to see which is cheaper?
are those 2 rates quoted by the bank?
if that's your question, #2 is cheaper.
But rates are pretty high. I suggest you get a cheaper source of funding

always ask your bank to give you the EIR, and include all hidden fees into the EIR calculation so that you can compare apple to apple

 

[dork32]

So i found the following in the respective websites....

Assume 10k loan. 1 year.

SCB Cashone illustrations show --
Applied / flat interest rate : 8.58%
Effective IR: 19.34%
EIR is calculated taking into account first year annual fee of $199

UOB
Flat rate : 4.25%
EIR : 10.61%
Processing fee : 1.5%

If tenor is 1 year, why both not the same ?
Got service chargees?

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different because different banks got different promotion.
processing fee is service charge

 

[DBSLoanConsultant]

Hi there,

EIR is calculated which reflects on the total cost charged for using the loan derived from applied interest rate (AIR) as an interest rate with annual compound interest payable. It is the actual interest we charge expressed as a % of reducing balance.

Dear Threadstarter,

Different banks offers different interest rates base on the tenure (1,2,3,4,5 years) and loan amount. Some banks offers with 1% insurance fee and 3% processing fee while others only offer the processing fee.

For instance, if you were to loan 10k from DBS with a 3years tenure. The interest rate for each year is 5.88%.

Hope this answer your questions.

 

[vofzxy]

what is your question? I dont understand?
u wanna compare the 2 loans to see which is cheaper?
are those 2 rates quoted by the bank?
if that's your question, #2 is cheaper.
But rates are pretty high. I suggest you get a cheaper source of funding

always ask your bank to give you the EIR, and include all hidden fees into the EIR calculation so that you can compare apple to apple

Haaa ok. Will clarify.

Why EIR and applied rate is different?

Based on your reply
EIR = applied rate + charges ?

What is a cheaper source of funding ? Asking from friends relatives and family ?

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[vofzxy]

different because different banks got different promotion.
processing fee is service charge

Ya noted on the promotion.
Apologies for not specifying my question explicitly....

I was after the difference between EIR and applied rate...

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[vofzxy]

Hi there,

EIR is calculated which reflects on the total cost charged for using the loan derived from applied interest rate (AIR) as an interest rate with annual compound interest payable. It is the actual interest we charge expressed as a % of reducing balance.

Dear Threadstarter,

Different banks offers different interest rates base on the tenure (1,2,3,4,5 years) and loan amount. Some banks offers with 1% insurance fee and 3% processing fee while others only offer the processing fee.

For instance, if you were to loan 10k from DBS with a 3years tenure. The interest rate for each year is 5.88%.

Hope this answer your questions.

For more information on unsecured loans, credit cards, cashline and installment loans please email me at DBSLoanConsultation@ hotmail.com

Wah. Got such user wor !

Hahaha, thanks for the explanation. Noted on the answer..

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[vofzxy]

If i take 10k 1 year tenure, the calculations are to calculate my monthy repayments or the lumpsum i have to put on the table on the first day it is due ?

Can choose repayment period?

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