Banks tempt with their offers. On billboards and in TV commercials, they promote loans in which the interest rate or commission falls to 0%. How is it really Which bank has the best offer at the moment? We checked it out.
We asked the banks to prepare a simulation of the conditions under which they would grant a cash loan to a client achieving a net income of USD 4,503, based on an employment contract of indefinite duration.
The client is interested in a loan of USD 25,000 USD, which wants to pay back for 48 months. The simulations presented apply to internal and external customers.
In the case of cash loans, it is difficult to predict which customer will get an offer prepared on better terms, the one with a history in the bank and many products, or one that the bank can only get. Many price aspects depend on scoring and the client’s assets.
Cash loan for internal customer
Good Finance has prepared the best offer for an internal customer, i.e. having an account at the bank in which he is applying for a loan.
Borrowing 25,000 USD in this institution, the client will pay USD 28,730 after four years, and the monthly installment will charge his budget the amount of USD 598.54. This amount will only be affected by interest accrued on the amount borrowed (at an interest rate of 6.99% per annum). Good Lender Bank will not charge the customer for the loan.
Customers of Good Finance will pay a monthly installment of USD 607.51. The loan interest rate is 1.90 percent. per year, and the commission for granting it – 10.90 percent All this translates into a payment amount of USD 29,980.
Plus Bank and its 6/6 loan took third place in the ranking. In his case, the monthly installment will charge the clients’ home budget to USD 624.58, and the total amount to be repaid will be USD 29 980.
It should also be added that Plus Bank’s offer is the last one for which the total amount to be paid will be less than USD 30,000 USD.
Loan to an external customer
Good Finance took first place in the list of loans for an external customer. A person who does not have products in this bank will receive the same offer as regular customers.
The second position, with a total payment of USD 29,592, went to Good Finance. The loan interest rate is 6.99%. per year, and the commission for granting financing – 3% amount borrowed.
Good Finance came in third. In his case, the interest rate on the loan is the same as for the second place winner. However, the commission is higher – it is 6.90 percent. loan amount. All this translates into a total payment of USD 30,831.
The offers to be as close to our needs as possible
The choice of the institution in which we decide to take a loan depends, of course, only on us. The most important thing is for the offer to be as close to our needs as possible.
Certainly, it will be a great convenience for you to pay back the loan if the bank automatically installs the installment, but you must have an account with the bank.
It is worth to read all the rules and costs related to both the account and the loan. A slightly lower loan installment may cease to be attractive when we see account maintenance fees.