Bank Loan - How to choose?
Let’s say the following banks are offering you the following rates :
Let’s say the following banks are offering you the following rates :
Bank A :
Year 1 – 1.33%
Year 2 – 1.73%
Year 3 – 2.93%
(a) Lock-in period : 2 years
(b) Legal fees subsidies up to $3k. Claw-back period is 2
years.
(c) Re-pricing fee is non-chargeable.
Bank B :
Year 1 – 1.54%
Year 2 – 1.54%
Year 3 – 3.30%
(a) Lock-in period : 2 years
(b) Legal fees subsidies up to $3k. Claw-back period is 3
years.
(c) Re-pricing fee is chargeable at $500.
Which bank loan is a better choice?
Check out how to do bank loan comparison in our book.