bank charging 3% to pay off loan
- phuketrichard
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bank charging 3% to pay off loan
has anyone come across this
we are selling a piece of land we brought and had borrowed form the bank some $$
the loan is 3 years Old
wife has told me the bank is charging us 3% more to pay it off
is this for real?
what a SCAM
we are selling a piece of land we brought and had borrowed form the bank some $$
the loan is 3 years Old
wife has told me the bank is charging us 3% more to pay it off
is this for real?
what a SCAM
In a nation run by swine, all pigs are upward-mobile and the rest of us are fucked until we can put our acts together: not necessarily to win, but mainly to keep from losing completely. HST
Re: bank charging 3% to pay off loan
Banks in many countries charge an early repayment fee, or 'break cost', it is a penalty charged if you pay back more than your fixed monthly repayment or pay the whole loan off too early...its a shit policy, you get penalised for early repayment because the bank is losing out on all the potential interest, but it would have been stated in the T&C's of your loan agreement so you shouldn't be surprised.
Re: bank charging 3% to pay off loan
Very real and not a scam. The 3% seems higher than most, but given what these banks give out on interest rates for term deposits it’s probably in line.
Re: bank charging 3% to pay off loan
That's quite a thing even in (some? many?) Western countries.
- Jerry Atrick
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Re: bank charging 3% to pay off loan
Normal globally unless one takes credit from a Credit Union or other less-predatory-than-industry-standard institutionphuketrichard wrote: ↑Wed Feb 21, 2024 11:19 am has anyone come across this
we are selling a piece of land we brought and had borrowed form the bank some $$
the loan is 3 years Old
wife has told me the bank is charging us 3% more to pay it off
is this for real?
what a SCAM
- phuketrichard
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Re: bank charging 3% to pay off loan
i was led to believe that if we paid it off in the first year there was a penalty which i understand, but after 3 years??PSD-Kiwi wrote: ↑Wed Feb 21, 2024 11:24 am Banks in many countries charge an early repayment fee, or 'break cost', it is a penalty charged if you pay back more than your fixed monthly repayment or pay the whole loan off too early...its a shit policy, you get penalised for early repayment because the bank is losing out on all the potential interest, but it would have been stated in the T&C's of your loan agreement so you shouldn't be surprised.
Not like this in the states or Thailand ( both where i have had loans)
I never got to see the T&C before we got the loan<
My mistake
so i take it, its 3% of monies owed?
In a nation run by swine, all pigs are upward-mobile and the rest of us are fucked until we can put our acts together: not necessarily to win, but mainly to keep from losing completely. HST
Re: bank charging 3% to pay off loan
I think it’s more dependent on how long the loan was for and when you decide to pay off in full.
I’ve paid two (2) 5-year vehicle loans off early, between 6-9 months, and was never penalized.
I’ve paid two (2) 5-year vehicle loans off early, between 6-9 months, and was never penalized.
- phuketrichard
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Re: bank charging 3% to pay off loan
5 year loan already paid 3 1/2 years
In a nation run by swine, all pigs are upward-mobile and the rest of us are fucked until we can put our acts together: not necessarily to win, but mainly to keep from losing completely. HST
Re: bank charging 3% to pay off loan
I know in the U.S. they use compound interest on home/auto loans and the majority of the interest is paid early in the loan, the principal and interest paid is not the same every month. That’s why when I paid those two (2) vehicles off it was mainly principal with very little interest left.
Don’t know how Cambodian banks determine how much of the payment each month goes towards the principal.
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Re: bank charging 3% to pay off loan
Any loan I've had here also works on that principleKenr wrote: ↑Wed Feb 21, 2024 12:06 pmI know in the U.S. they use compound interest on home/auto loans and the majority of the interest is paid early in the loan, the principal and interest paid is not the same every month. That’s why when I paid those two (2) vehicles off it was mainly principal with very little interest left.
Don’t know how Cambodian banks determine how much of the payment each month goes towards the principal.
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