Nissan Car Lounge - Almera, Juke, Latio, Qashqai, Sylphy, Teana Owners > Latio

Car loan - flat rate basis OR monthly rest basis

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arias48:
Hi, based on my understand, only flat rate basis is available, but not monthly rest basis, am I right? The interest rate that bank quoted us is based on flat rate right?

http://www.abs.org.sg/documents/CarFinancing-English.pdf

alangohek:

--- Quote from: arias48 on October 14, 2008, 06:22:41 PM ---Hi, based on my understand, only flat rate basis is available, but not monthly rest basis, am I right? The interest rate that bank quoted us is based on flat rate right?

http://www.abs.org.sg/documents/CarFinancing-English.pdf

--- End quote ---
Yes you are right. Monthly rest is applicable to HDB flat and some study loans.

HumbleCar:
Convert flat rate to effective rate and you will see that the real actual interest will be much much higher.

arias48:
The doc said after Nov 04, banks are free to quote interest rates on flat rate basis or monthly rest, wondering why no monthly rest available in the market yet  :confused1:

law:
ABN used to offer a monthly rest loan package. not sure if they still have it now. monthly rest package usually carries a higher interest rate compared to flat rate package.

however, for flat rate package, the rate that we are paying is not the flat rate interest. e.g a 2.5% p.a. flat rate package, the effective rate tat u are paying will actually be abt 4%+.  it will not differ much from a monthly rest basis package. not too much savings for taking a monthly rest package. tat could also be the reason why banks are not offering such package.

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