It's 4%p.a monthly rest, is it worth?

Since you know only need to pay RM14K, why not loan RM15K?
Haha.. unless company need it to be even numbers =P

And you plan to finish pay all for how long? 3 ? 5 years?

Have to loan 20k. 3years.

Looks like not a bad idea la.. Can use =)

RM1257.29 interest throughout 3 years. Every month pay RM590.48
Better than % rate provided by banks for personal loan.

Hope my calculation is correct la.. calculated by monthly rest.

This post has been edited by jerrymax: Jan 22 2013, 05:29 PM


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dude - simple talk/view:
1. 4%pa (dont care what rest) VS PTPTN x%pa?
If less cost %, then worthwhile to take the 4%pa
ELSE
If more cost %, not logical to take right... unless somehow U need the cash to settle (ie. U owed PTPTN since... and now owe lump sum... and can't clear...)

2. U owe PTPTN $14K but the new loan $20K. U have the discipline to handle the extra cash for making more than 4%pa?
Forced to ask this Q coz some people (my previous self included ) when have $ lying around, backside itchy, suddenly got urge or "emergency", like "emergency need new gadget/changgih mobile phone".
If disciplined enough, no probs.
If not, it's like playing with a loaded gun.

Just cow sense above, no right/wrong yar

Additional thoughts:
4%pa is low leh, even lower than most housing loans which the banks hold collateral.
Thus, IF U are an investor AND U have things which can, on average make U >=6%pa, U may want to tap this 4%pa loan. IF lar

This post has been edited by wongmunkeong: Jan 22 2013, 05:38 PM

Err sorry sifu!

PL interest rate is different from most mortgage reducing rate, so the effective interest rate p.a. is much higher than stated.

Effective interest rate for PL @ 4% is about ~7.4% p.a. (our in-house accountant pinky can help us count )

PL @4%, 20K loan 3 years = 622.22 per month x 36 month = 22,399.92, total interest paid = 2,399.92

PTPN 20% rebate = 14K x0.2 = RM 2,800

You only save like RM 400 for 3 years.

This post has been edited by gark: Jan 22 2013, 06:35 PM

PL interest is calculated up-front just like car loan, cannot use reducing principal calculation. Bank also want to cari makan what.. if give you 4% reducing rate want to makan apa?

This post has been edited by gark: Jan 22 2013, 06:37 PM

er.. i thought he said company loan wor, not PL?
if i misread & it's Personal Loan instead of company staff loan (benefits), forget it
My bad

Well technically he say company personal loan . This kind of 4% loan is very common in GLC/govt institution working together with major banks. The payment will then be cut directly from salary.

A lot of people has been conned to think they get better interest rate. Typical sales talk is "only 4% mar a bit higher than FD only what, special for GLC employess only u know..."

If really he means company benefit loan, then by all means go for it.

This post has been edited by gark: Jan 22 2013, 07:05 PM

ah.. then the magic Q our buddy shd be asking is:
what is the effective rate of interest pa?
hehhe - then easily comparable to even FD & stuff.

Since when I have this honour?

EIR for 4% p.a. 3-year loan is 7.51%

If it is personal loan, still need to mentioned daily or monthly rest want meh?

Yes I'm investor but not going to touch the extra 5k, will find something higher rate to save it only.

Disipline wise, work nearly 3 years, use <rm100 hp, no car, no house, no personal loan, every month clear credit card debt, i think ok kua

if i clear ptptn i can have 3+k rebate. Installment with 20k eat me interest 1.3k, thus can save 1.7k lor.

But as u said, really need to manage well the remaining 5k..

Oh the PL for this personal loan is 4%p.a monthly rest, means 3 years only 1.3k interest in total for 20k

4%p.a, if take 3 years for 20k means 1.3k in total which is 2.1%p.a with constant rate.

Best if U know what is the repayment schedule
eg. every month, how much must U pay back per month for 3 years?
with that, i can ascertain your effective interest rate pa.
coz your "constant rate" is not too comparable with FD rate nor any other compounded pa rate.

For 20k, 3 years i need to pay RM591 monthly.

hm.. that's approximately 4.17%pa. Good deal if i can get at it (with no collateral summore)

Eh how u get this 4.17%p.a? Mind to share?

I found it is lower than any other loan can offer..

er.. checkout the screenshot - the formula in Excel is there (see the formula bar). I used XIRR() function