The loans thread!

[Hamburger]

your bank teller quite updated. have more breakfast with her..

breakfast.......after our supper

[Altivo]

Wah, now this thread is about who has what illicit relationship with banking staff? :D

[RadX]

Next round of scandals cum out

[L_club23]

i slept wiht the ceo and she could not talk [laugh]

 

OCBC CEO is male... are you implying that you are...

Edited March 7, 2013 by L_club23

[Thaiyotakamli]

Used car loan interest 3.75 and max 5 years

But if go loan shark 4% and max 10 years

 

Ai mai??

[Ticklish8]

Prata flip:

 

In his speech rounding up the Budget debate, Mr Tharman also said the loan restrictions are not permanent and will be reviewed later depending on market developments, but are necessary for now to keep a lid on inflation.

 

He added that car prices made up one-fifth to half of inflation measured by Consumer Price Index in the past three years.

[Ticklish8]

Anybody got disabled family?

 

Good news for you:

 

The new curbs on motor vehicle loans will not apply to those who are physically disabled as well as their caregivers for one car, said Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam on Thursday.

 

This follows calls by MPs to ensure that this group can still have access to a car to get around.

 

In his speech rounding up the Budget debate, Mr Tharman also said the loan restrictions are not permanent and will be reviewed later depending on market developments, but are necessary for now to keep a lid on inflation.

[Simplecar]

Used car loan interest 3.75 and max 5 years

But if go loan shark 4% and max 10 years

 

Ai mai??

4% per day? Cannot be 4% per week.

[Thaiyotakamli]

4% per day? Cannot be 4% per week.

Per week, nowadays loan shark are turning over new leaf

[Simplecar]

Per week, nowadays loan shark are turning over new leaf

Oh, a loanshark with a conscience? Cheaper than the stupid and unscionable 24% CC rollover charge??

 

First time I hear of such a nice LS.

[Thaiyotakamli]

Oh, a loanshark with a conscience? Cheaper than the stupid and unscionable 24% CC rollover charge??

 

First time I hear of such a nice LS.

The loanshark comply with mas rule lol

[Mllcg]

sometimes, even if 1 can afford, they wouldn't mind taking a loan and slowly paying back. be it cars or otherwise.

 

if the interest rate is very low, just borrow first and leave the rest aside as investments..

 

borrowing now and slowly paying back means the value of the loan actually depreciates

[Gearosv2]

U got to look at how much money is left in your CPF versus the loan amt u r taking. If u hv 100K in CPF while ur loan requirement is 300K, even with the interest diff, u may not necessary hv an effective loan of 0.1%. Ur scenario is good when u hv 300K in CPF and u intend to loan 300K given that the financing costs is low...

 

if I hv 300K in my ordinary and my loan is 300K, I will settle in full... at least 1 loan off my mind... nevertheless, I do friends adopting your strategy in fact they use other source of means to reduce interest further...but I prefer to pay less or no interest if possible given that it is still an expense. Also, I cannot take out my CPF...why not use it up...it will be accumulated over the next few years again...

 

I do agree with you that if one qualifies for HDB loan take it... if ur loan period is gonna stretch more than 10 yrs and loan amt is big enuff..

 

So I always don't understand how we get the effective 0.1% interest rate. When we sell the house, we still have to return the money back to the OA including the interest. Isn't that 2.6% + another 2.5%? total payout of interest is 5.1%?

 

Sorry for my question as I still kind of blur why I shouldn't approach a bank with fixed interest that is lower than 2.6% provided by HDB.

 

Cheers,

Kimu

Edited March 7, 2013 by Gearosv2

[OmOm]

Hi bro,

 

Just thought I would share my two cents on this topic.

 

Most people generally know that loans are a double-edged sword. They can help the individual and they can harm.

 

Loans can be beneficial when they are utilised by those with an eye for details, strong financial discipline and a sound understanding of the purpose of such tools.

 

Conversely, they become harmful and even fatal when used by those who misunderstand their purpose, are financially careless and ill-disciplined.

 

At the macro-level, loans are crucial in the continued flow of money in the financial systems.

 

At the micro-level, loans allow organisations and individuals to achieve leverage on their existing resources, improve their cashflow, ride out temporary financial turbulence and even exploit arbitrage for revenue/income generation.

 

As with many things in life, it is pointless to outright glorify or condemn loans. Moderation is key in approaching them, allowing suitable use in appropriate circumstances.

 

Today many financial institutions provide loans to individuals based on their ability to repay their loans. MSR, DSR, etc have been invented to provide a formal means of limiting and restricting the individual's exposure based on his financial status derived from income and liabilities.

 

This is the quickest way to partition a population into manageable categories for assessment of loan eligibility. However, this form of quantisation is a blade that cuts coarsely across the populace, sometimes effectively but often otherwise.

 

The alternative would be to grant an individual access to loans based on his financial literacy and understanding of how these tools work. This ensures that the individual possesses adequate know-how on the strengths and dangers of loans. However this is time-consuming and plenty of overheads will be incurred in implementing this as the primary form of loan-eligibility testing e.g. tests.

 

There is still much room for improvement in the way loans are managed and issued to organisations and individuals today. There is a stark contrast in the slow rate of evolution of these aspects against the rapid pervasion of loans into every part of daily living in the world.

 

This, perhaps, is the key reason for the financial imbalances and turmoils that the world is thrown into every now and then.

 

Thougt i start this on loans now and to monitor as well rates for vehicles and perhaps houses.

 

One thing that got me thinking is that loans form a core business with the legal ah longs...er banks.

 

One post i rem jamesc posted is that one ahs and shd be considerdd prett high on the list to be given a loan. Criteria? Choco can u elaborate? how does the bank deem if one is worthy or not?

 

Lets keep tis academic and focussed so ppl can discern n think of their own ability or liability before taking a loan.

 

[RadX]

nice bro....thanks. Yes, i would say the system is developin...

[CH_CO]

End of day , it really depends on who you know and who is willing to back you. I just state an example , a 1 dollar IT start up shop can "bid" a million dollar project. So how can one possibly do that? You know yourself.

[Tiger1]

To me, i dun give a damn to cpf. I got more than 100k now in OA but govt say cannot touch. For my own good cos they say i can live till sibei old. Even uf they pay 10% interest also LPPL. ponzi!

[Cars08]

So I always don't understand how we get the effective 0.1% interest rate. When we sell the house, we still have to return the money back to the OA including the interest. Isn't that 2.6% + another 2.5%? total payout of interest is 5.1%?

 

Sorry for my question as I still kind of blur why I shouldn't approach a bank with fixed interest that is lower than 2.6% provided by HDB.

 

Cheers,

Kimu

That's the rule they set lor..but it goes back to your own acct so it is ok...i know some will say but i cant use it or take it out...well it still under your name...they always wan us to hv enuff...not to be a burden in short...