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Penalty for early loan redemption?


Wpower
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aside to the rule78's 20%, is there such practice impost by the loan company in the market?

 

banks? in house? private institutions?

 

 

TIA

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aside to the rule78's 20%, is there such practice impost by the loan company in the market?

 

banks? in house? private institutions?

 

 

TIA

 

If for HP loan, normally is only that rule of 78 or whatever it is called that applies.

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If for HP loan, normally is only that rule of 78 or whatever it is called that applies.

 

ok that's clean. so there is no additional whatever fee.

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ok that's clean. so there is no additional whatever fee.

I remember there is early redemption fee when i asked my bank. why dont you call your bank and ask?

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I think TS bro got it.

 

Rule 78 computes the Interest Rebate Amount upon early loan redemption.

 

Penalty is imposed as a %age (usually 20%) of the Interest Rebate.

 

Depending on which bank, there may be other admin fees & charges for early redemption. DBS claims they dont have any.

 

For my case, it was more cost effective to take the loan (dont redeem early) & put my money into FD earning 2% pa for 2 years.

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aside to the rule78's 20%, is there such practice impost by the loan company in the market?

 

banks? in house? private institutions?

 

 

TIA

I think there is for the first 18 months. Better check with your bank before doing early redemption.

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I thot that HP agreement is regulated with rule 78 and penalty %, but was surprised that additional fee/charges can be added, thereby making it unattractive for early redemption.

 

OCBC additional fee is quite huge. Watch out.

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