Wazua
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Help me before iI blunder
Rank: Member Joined: 4/15/2009 Posts: 371
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Hi ALL,
I need your valued assistance.
I am servicing a bank loan of 280k at 14% interest. I find that the balance is reducing too slowly ( due to high interest). I have the option of letting my Company sacco buy the loan but will charge me 5% of the outstanding balance. The bank will aslo penalise me (5%) for early repayment. My advantage is that I will enjoy lower interest rate (12%) and smaller monthly repayments. This will leave me with more money to invest elsewhere.
Please help me before I blunder
Men who kiss their wives in the morning live five years longer than those who don't
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Rank: Member Joined: 2/25/2009 Posts: 68
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hi provide more details for further assessment. ie what period is out standing outstanding,current monthly payment. also the period it will take to pay the sacco loan.
the reasoning behind is the true value (outstanding balance )of loan may go up by 10% ( 5% for sacco as well as bank early repayment). though you may pay less amount than what you are actually paying with the sacco,the extended duration of repayment may not be worth it. my 2 cents
Investing is a zero sum game: you either gain or loss
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Wazua
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Help me before iI blunder
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