First active personal loan @ 8.64%

C

clio1999

Registered User
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I have been shopping around this morning for a €7k personal loan and first active have quoted me 8.64% variable over 12 months, I am planning to pay back this early and there is no early repayment penalties. I was on IFRSA and had a look at the surveys and this seems to be quite good, also am with PTSB and they were only offering me 9.9%. Do you reckon this is a good deal?
 
You have lost me Clubman, its for a holiday. I originally wanted it over 6 months but the shortest term was one year. The repayments will be €543.20 p.m not including payment protection
 
Tesco are offering a better rate on a fixed rate loan, but there are no penalties for early repayment.

There is a good chance that ECB rates will move higher this year and variable interest rates could do likewise.
 
clio1999 said:
You have lost me Clubman, its for a holiday. I originally wanted it over 6 months but the shortest term was one year. The repayments will be €543.20 p.m not including payment protection
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You need to ask the lender if the rate quoted is a nominal rate or an Annual Percentage Rate. Only the latter indicates the true cost of the credit and allows you to compare one loan with another. Also - carefully consider if you really need repayment protection on any loan as generally it's very bad value for money.
 
I seen Tesco's rate 7.2% on fixed but I didnt think that you could pay that one off early like after 5-6 months when it is fixed. I thought there would be a penalty am I wrong??
 
Im confused now I will have to go into her tmrw with all the details and get it in writing. A.P.R, C.A.R and nominal are all double dutch to me, at the end of the day I just want to know how much each month period.
Thanks guys for the help
 
clio1999 said:
I thought there would be a penalty am I wrong??
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Some (/ most) fixed rate loans come with a penalty for early redemption. The Tesco one however does not (As mentioned by Ccovich above).

clio1999 said:
Im confused now I will have to go into her tmrw with all the details and get it in writing. A.P.R, C.A.R and nominal are all double dutch to me, at the end of the day I just want to know how much each month period.
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All you need (and want) is the APR. You could also ask how much it will be per month (and if all loan requests are over the same term get an idea from that) but the APR is the one you want for a fair/true comparison.
 
clio1999 said:
A.P.R, C.A.R and nominal are all double dutch to me, at the end of the day I just want to know how much each month period.
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CAR (Compound Annual Rate) is irrelevant here. It applies to deposits and not loans. If the terminology is confusing then IFSRA's website includes some useful explanatory info. When comparing different loan offerings then you need to compare the APRs on offer. Nominal rates may be different and not reflect the true cost of the credit. Cost per thousand/month may also help but may or may not tell the full picture. You also need to know how much you will have paid back in full at the end of the loan. Should be number of months multiplied by the monthly repayment but there can be gotchas. If you don't understand any of this then perhaps you need to deal with a broker (if there are brokers for personal loans?).
 
Thanks for explanations of the terminology guys, she did give me a monthly amount of €543.20 per month, total cost of loan €6518.40 which doesnt seem to bad to me, but Iwill double check with her tmrw.
thx again
 
Satanta said:
Has the loan amount changed??
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The orginal loan amount I was looking for was €6k but i have an existing car loan of 1k and they said when getting a new loan the old loan must be paid first i.e the loan has increased from 6k to 7k (they added the balance on to new loan), the figures of €543.20 was the repayments on 6k, sorry should of made myself clearer:eek: , the same interst rate applies to the 7k loan @ 8.64%
nothing passes you guys:)
 
Hi please note that variable rate consumer loans can always be repaid before the final repayment date without any penalty for early repayment - this is set out in the Consumer Credit Act 1995 (section 52). However, where you repay a loan early during a time when the loan has a fixed rate of interest, you will have to repay to the lender the cost of breaking that fixed rate. This is to repay the lender the cost of obtaining that money at that fixed rate in the money markets. However, always check the terms and conditions of your loan offer to make sure.
 
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