Personal Loan - Can go for this?

[Bobby Goh]

Principle Loan Amount: $10,000
Interest: 7% pa
Repayment Period: 4 years
Monthly Amount: $267

Borrower is willing to sign IOU.

 

[iCuteCube]

Risk of default of non-payment.

If it's only 10k, be prepared that person do not pay you.
Cost of suing him might cost more than 10k and you will eventually forgive and forget.

Given a choice, I won't go for this. Unless is someone really close to me then I will consider. Otherwise, please refer him to POSB Loan Assist, please google for more information!

 

[limster]

this is a topic that is often discussed in other forums. See:

http://sgforums.com/forums/8/topics/437321

 

[Shiny Things]

Oh hell no. He's coming to you because the bank won't loan him the money. Don't get involved. (Especially not if it's a friend; introducing money into a friendship is the surest way to blow the friendship up.)

 

[dork32]

based on the numbers given, the effective interest is 12.7%.

very solid interest

 

[kelvin_99]

Principle Loan Amount: $10,000
Interest: 7% pa
Repayment Period: 4 years
Monthly Amount: $267

Borrower is willing to sign IOU.

Some points to be considered.

Are you prepared to write off as loss if you are not be able to get all your money back? If the borrower is creditworthy enough to borrow from the bank, he/she would not come to you. As for legal recourse, if you do not get back the money, I do not think this sum justifies legal proceeding and also this would sour the relationship if this is your good friend or relative.

If you are confident that you are you able to get your full amount with interest back as scheduled, and this is just spare cash for you which you are going to keep in the bank anyway, then by all means go ahead. To assess this, perhaps you should ask what the borrower needs the money for.

For me, if this is spare cash to me and if I am asked to help because he/she needs the money to tide over hard times (e.g. just lost job, for emergency hospitalization, etc), I may consider. But then again, I would not think of charging the high 7% rate. If it is to fund a new/existing business or repay another loan, I would back off.

 

[wahkao3]

no 24% no talk!
unless he has a credit rating of AAA from moodys,Fitch or S&P
or he has another guarantor with similar AAA credit rating

 

[tiffanygoh]

basically if you lend money must be prepared for event of default.

 

[torrent06]

Have you tried approaching Credit Counselling Service Society to help renegotiate the repayment terms with the bank? I believe they can help reduce your interest and clear your debt faster. Good luck.
Credit Counselling Singapore Society ? Debtors and Creditors - Viewarticles Articles