Help clear some loan info

K

Kmartin4450

New Member
Joined
Sep 23, 2015
Messages
1
Reaction score
0
Hi.
I got a Loan for R14K about 4 months ago from Direct Axis. I have been paying for 4 months.
I would now like to settle this , they have told me settlement about is R15200.00 Even more than the original loan amount, excluding the R4000 already paid. ( Total to settle R14000 is R19200 )
This sound right ?
 
Ouch.

What's the interest rate?

I would never take a Direct Axis loan.
 
hmm not sure about that one, but it is most likely because of the massive interest rate.

balance at month end: Rx
Interest on balance = Rx%...
new balance = Rx+x%...
debit = Ry
new balance = Rx+x%... - Ry

would probably find in the beginning your repayment amount was less than the interest calculation.

interest rate was probably 23-25% and what were your monthly repayments?
 
Kmartin4450 said:
Hi.
I got a Loan for R14K about 4 months ago from Direct Axis. I have been paying for 4 months.
I would now like to settle this , they have told me settlement about is R15200.00 Even more than the original loan amount, excluding the R4000 already paid. ( Total to settle R14000 is R19200 )
This sound right ?
Click to expand...

They need to send you a settlement statement.
Your amount is higher probably due to the insurance, credit life, the premium is paid upfront and in full.

Drifter said:
Direct Axis loans are running at 32% interest.
Click to expand...

Nope, the average is lower than that.
Its all dependent on your risk profile
 
Pretty sure that not the settlement amount, but the amount still payable.

Since the consumer protection act, you are always able to pay back a loan early with no penalties. So the settlement amount should be less than your 14k original amount, but probably not by much because you've just been paying off interest these past months, and all the other loan initiation fee, insurance and other menial **** costs.
 
IIRC, the max interest rate on short term/unsecured loans is 32%.

Get the settlement quote as ant_man suggested. They should give you a detailed breakdown of what you are paying back (capital, initiation fee which will most likely be R1140, service fees, insurance fees, admin fees, interest accrued, etc.)

Those fees tend to increase the outstanding balance significantly, as does a high interest rate.

If you can't afford it in one go - and I'm suggesting this as an ultimate last resort - consolidate the loan at another bank, given that you don't pay initiation fee and get significantly lower interest rate. Don't take up more credit though! In some cases consolidation can be worth it but in most cases, it's not.
 
Never get loans from places like DA and if you do always check what rate, total amount payable, terms of early settlement, required additional "insurances" etc. obviously a bit late to be captain hindsight but hopefully you'll know better next time.

I'm not surprised at this amount at all.. but as others mentioned get a settlement statement.
 
My mother in-law was in a pickle and asked if i could help her. Made a R29000 loan and got a 28% interest rate. Damn im glad that is over
 
LOL @ taking a loan and wondering why you have to pay more back. OP's the type of person DA and co love to see walking through their doors.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X