I wanna ask, now I got car bank loan with BSN with 3.15%, now i got offer personal loan from Bank Rkyt with 2.66%, so is it wise to get the loan and settle with BSN?

Is there any cons?

personal loan is floating rate?..if floating for sure it will increase when bnm announce opr later

This post has been edited by ccsmka: Jul 13 2020, 12:39 PM

Pay highest interest debts fast and keep money in highest interest pockets. In your case settle higher interest car loan. But check total money to be repaid same or not.

ur car loan installment is combination of loan principal and interests...
not sure why u need to do that...

I made full car loan outstanding. But using my own cash money

Better just continue that car loan as usual. Avoid personal loan

Better use cash full settlement....

Im currently working out my finance to lump sum settle one of my old loan as well

Still left outstanding around rm10-12k

I would if I have the cash to begin with, but no.

No

Interest dah dikira sejak beginning of the loan.

U mean settle ur hire purchase loan? Not worth it, discount very minor..

Car loans / Hire purchase interest is not under reducing balance like housing loans. Even it you full settle now, you would not save a lot on early settlement interest.

Yes but will the lower rates for personal loan safe me money?

Car loan usually interest factored in. So not much savings if settle early, unless bank offered discount.

Yes just minor discount only. But peace of mind. I made full car loan outstanding.

Now ccris record clean. Zero loan. Enjoy simple life

Depends how old your loan is.
If only 2 years left, most interest already paid.

Grats ya

Thats the only Pro of settling car loan early, which is peace of mind.

Some ppl also settle because they need to make a new loan for car or house. Need to free up some ccris

Cant buy peace of mind. But only if got cash money.

Avoid made personal loan to pay car loan

bobi ang say no motivation to work and earn more money

This is a question I was wondering if anyone could give some insight..

Yup agreed the savings is not much, but it would still be a saving rather than paying until the term ends no?

For example: if the monthly installment is RM 600 and remaining 12 months, you would pay RM 7200 but if you settled it would be RM 6900 (maybe, just an example).

If you have an extra 7k lying around (not taking a loan), would you opt for settlement or would you use the 7k for an investment?

just cash settle and dont borrow any more.

Yes agreed. I not yet buy house. Thinking to buy house later

This post has been edited by fiqir: Jul 13 2020, 01:20 PM

Investment, if you know how. If u plan to put in FD, i think also ok. Cos the savings memang around fd rate only.

Another factor is whether u are planning to buy a house or another car soon, then maybe u wanna setttle old loan to free up ur ccris

Bobi ang millionaire already. He tak kisah sudah.

kimilau

Go to your bank, check your full settlement vs outstanding balance. Then check your total repayment for personal loan. Then you would know if you could save on interest.

the amount that you're paying with BSN right now already included the 3.15%
so switching to personal loan didn't save u anything at all

if u ask me, u just added another 2.66% on top of your loan
and i seriously don't recommend personal loan...read the T&C properly...theres usually a trap

For your hypothetical situation, I would settle my loan in full.
1. Peace of mind, because I don't like taking loans, but unfortunately it is necessary,
2. Don't forget the extra RM 600 that you don't have to pay every month....

personal loan rate need to check with EIR

if EIR is higher than car loan rate then not recommended

car loan diff than house loan lei

Rule 78 my dear.
https://mypf.my/2018/05/17/car-loan-hire-purchase/

If one has only one car loan and planning to buy his first house, say next year, will it be wise to keep paying for the car loan to get better "paying on time" history or do as you say? This is assuming the house loan installment amount is within his capability, even after taking account of his car loan installment.

If he clears off the car loan today and only buys house next year, will there be too little credit history to support his loan application?

u check whether rule 78 applies to your current car loan o not.
if no, then is worth.
if yes, not worth.

if you're dumb to ask question like this, better for you to clear your debt first.

i've seen many people 'act smart' on leveraging but actually they dont know shit about how interest rate works.

How old is the car loan? I assume already paid few years?

obr berapa?

Paid 2-3 years ady.

Tai long businessmen,
Mohon ajar ketard yang tidak pandai

Oh then already got enough record ma..

Oic, thank you for pointing it out. Wasn't aware of such thing. Sorry my bad ya

Bank Rule of 78 says no

Pay by cash, SPRM & LHDN says hello

So just take that 9 year loan and pay according to the agreed tenure like a good boy.

The banks will be ever grateful to you.

This record got "expiry" date or not? Like say if the loan applicant last had a loan 12 months ago.

Hmm i think u have credit card too right? It should be sufficient as payment record

Hope got banker can answer ur question on the 'expiry' , im not 100% sure.. haha

And hence, this thread??

TQ for your input, much appreciated.