Whats a good Loan rate?

J

jicjoc

Registered User
Messages
12
Hi Guys,
Im back to college as a mature student in a few weeks and will need a big loan upto 100k.
Can someone tell me what a good rate would be to get?
I was quoted the ECB rate+ 1.5% which was about 3.05% as i recall.

I have some cash saved. Im debating whether i should spend this on years 1 and 2 and hopefully not touch any bank money til years 3 and 4

Would this make sense?

Im also thinking about doing some travelling in years 3 and 4 (Im going to be a doctor, and need to pass exams to work in the states), so would it make sense to withdraw the banks money and keep my savings for this travel?

Apparently the bank are very flexibile on when the money is paid back. If there's such a thing as cheap money, could this be it?

Thanks for your help
J
 
Are you borrowing the money to buy a home? What do you need the loan for if not a home? Why borrow money if you have money there to use. I don't fully understand your needs for this money? Will you be earning any income while you are studying?
 
Thanks Ted ;)

The loan is for fee's (12.7k per yr) and living expenses. Not for a home

Pretty much everyone that does this course takes out this loan.
I'll need the loan for years 3 and 4 for sure. I havent enough saved and i prob wont work during term if I can at all avoid it. Exams are far more important.

The big thing im wondering is whether I should avail of the loan money or spend my savings?
 
I assume that you are transferring form another course to finish off 4 yrs of med school. Fair play to you. Tough job. You will need all your time for study.
I would use the savings for year 1 and 2 to pay for fees and living expenses, using the summers after each year to top up on the savings and possibly have enough to pay for yr 3 also. You could then borrow any extra you need during yr 3 or before starting yr 4.
Why do what everyone else does and be left with a large loan at the end to have to clear. If you borrow now you will also have to be paying back interest on money you don't need now.
 
niceoneted said:
I assume that you are transferring form another course to finish off 4 yrs of med school. Fair play to you. Tough job. You will need all your time for study.
I would use the savings for year 1 and 2 to pay for fees and living expenses, using the summers after each year to top up on the savings and possibly have enough to pay for yr 3 also. You could then borrow any extra you need during yr 3 or before starting yr 4.
Why do what everyone else does and be left with a large loan at the end to have to clear. If you borrow now you will also have to be paying back interest on money you don't need now.
Click to expand...

Ta very much.
Makes sense. Interest starts accruing on the loan as soon as i start withdrawing it. So leaving touching that money til as late as possible is the way forward.

Im working 5 years now, so giving it all up to go back.
Its gonna be tough, but im looking forward to it. For some reason i got a big thrill out of working out whether i could eat for 5 days off a tenner. :eek: :)
 
I'd wait until I need the loan though before getting it. If you have it sitting waiting it will only be a temptation.
 
Am I reading this wrong , or are you getting ECB + 1.5% on an unsecured loan (with no income) ?
 
jhegarty said:
Am I reading this wrong , or are you getting ECB + 1.5% on an unsecured loan (with no income) ?
Click to expand...

Yes, why?
What does that mean?
As far as I can remember it was 3.05% currently.
Aib's margin is 1.5% again as far as I recall.

Their margin is constant and the only thing that changes is the ECB rate.

Could you let me know what a typical loan rate is?
Thanks
John
 
The typical AIB rate for personal loan over €25k is 7.46%.

Are you sure your not looking at mortgage rates ?
 
jhegarty said:
The typical AIB rate for personal loan over €25k is 7.46%.

Are you sure your not looking at mortgage rates ?
Click to expand...

Thanks!
Yes, im very sure.
Its currently 3.025% with aib's margin included in that at 1.7%

I'm still not going to touch it til I have to.
Thanks for all the help guys...
John
 
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