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Nissan Car Lounge - Almera, Juke, Latio, Qashqai, Sylphy, Teana Owners => Latio => Topic started by: arias48 on October 14, 2008, 06:22:41 PM

Title: Car loan - flat rate basis OR monthly rest basis
Post by: 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

Title: Re: Car loan - flat rate basis OR monthly rest basis
Post by: alangohek on October 15, 2008, 02:28:10 PM

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

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

Title: Re: Car loan - flat rate basis OR monthly rest basis
Post by: HumbleCar on October 16, 2008, 12:35:52 AM

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

Title: Re: Car loan - flat rate basis OR monthly rest basis
Post by: arias48 on October 16, 2008, 02:05:55 PM

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:

Title: Re: Car loan - flat rate basis OR monthly rest basis
Post by: law on October 16, 2008, 11:35:35 PM

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.

Title: Re: Car loan - flat rate basis OR monthly rest basis
Post by: arias48 on October 17, 2008, 10:45:11 AM

Quote from: law on October 16, 2008, 11:35:35 PM

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.

Thx Law.....

Title: Re: Car loan - flat rate basis OR monthly rest basis
Post by: arias48 on November 25, 2008, 10:42:42 AM

http://singaporemotoring.blogspot.com/2007/07/how-to-compute-effective-interest-rate.html