Interest rates

S

semisane1987

Senior Member
Joined
May 26, 2016
Messages
997
Reaction score
23
Good afternoon friends if you take out a loan and later discover the interest rates are high, is the a place you can go and dispute this. My friend took out a loan at the bank he said they gave him R95000. 00 he is paying R3552. 00 I just, did calculations for 48 months ( 4 years) he would have paid R175000. 00 that is ridiculous. Is the a way I can help him.
 
Ramodiana said:
Good afternoon friends if you take out a loan and later discover the interest rates are high, is the a place you can go and dispute this. My friend took out a loan at the bank he said they gave him R95000. 00 he is paying R3552. 00 I just, did calculations for 48 months ( 4 years) he would have paid R175000. 00 that is ridiculous. Is the a way I can help him.
Click to expand...

What?

How do you only later discover that rates are high?

The agreement you sign will state the interest rate. Unfortunately, your friend should have read his loan agreement before signing.
 
Ramodiana said:
Good afternoon friends if you take out a loan and later discover the interest rates are high, is the a place you can go and dispute this. My friend took out a loan at the bank he said they gave him R95000. 00 he is paying R3552. 00 I just, did calculations for 48 months ( 4 years) he would have paid R175000. 00 that is ridiculous. Is the a way I can help him.
Click to expand...

???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
 
I honestly don't know what happened here so you can imagine the look on my face when he told me. I thought Capitec Bank it's cheap and reasonable.
 
GoB said:
32%
Get a cheaper loan and pay this loan.
Click to expand...

Making other loan to repay another loan is that a good idea. He just told me he is left with 3 years he took out the loan last year. He said he does not mind because it's the only debt he has.

I thought bank loans they borrow you R10 and you repay maybe R11. 50 or R12. 00
 
Ramodiana said:
I thought bank loans they borrow you R10 and you repay maybe R11. 50 or R12. 00
Click to expand...

Oh...my sweet summer child. You're really innocent of the world, aren't you? Personal loans usually start at around 20% but yes 32% is gouging.
 
Ramodiana said:
Making other loan to repay another loan is that a good idea. He just told me he is left with 3 years he took out the loan last year. He said he does not mind because it's the only debt he has.

I thought bank loans they borrow you R10 and you repay maybe R11. 50 or R12. 00
Click to expand...

He does not mind? Seriously? now I am scared for your friend, and for you too , especially after this
I thought bank loans they borrow you R10 and you repay maybe R11. 50 or R12. 00
Click to expand...
 
Ramodiana said:
Good afternoon friends if you take out a loan and later discover the interest rates are high, is the a place you can go and dispute this. My friend took out a loan at the bank he said they gave him R95000. 00 he is paying R3552. 00 I just, did calculations for 48 months ( 4 years) he would have paid R175000. 00 that is ridiculous. Is the a way I can help him.
Click to expand...
There's no way that's just after interest. Most likely the life and income insurance is the majority of the monthly repayment amount. That's where they really get you. Should have taken insurance with a proper life insurer.
 
I'm bit speechless I once took a loan it was reasonable I took R20 000 I repay it back within 12 months. I was paying R2050.00 and it was through Capitec bank back in 2015.
 
Wow ... a bit shocked how people sign for things not reading what they are getting themselves into.

If you sign for a personal loan ... it is usually VERY VERY high, even higher than a credit card in my view.
 
Ramodiana said:
Good afternoon friends if you take out a loan and later discover the interest rates are high, is the a place you can go and dispute this. My friend took out a loan at the bank he said they gave him R95000. 00 he is paying R3552. 00 I just, did calculations for 48 months ( 4 years) he would have paid R175000. 00 that is ridiculous. Is the a way I can help him.
Click to expand...

He should have read what he singed.
 
Keep in mind that it would not just be interest. Part of that 32% you calculated is monthly service fees. Also there is an upfront Initiation fee. He probably signed and agreed to Credit insurance as well.

Look at the contract he signed and check what is being charged.

..call this lesson he is paying for "School fees" and do not do it again.
 
Ramodiana said:
I honestly don't know what happened here so you can imagine the look on my face when he told me. I thought Capitec Bank it's cheap and reasonable.
Click to expand...

Capitec is cheap and reasonable to BANK with, not loan from. All personal loans are expensive, I doubt any average personal loan from any bank is under 20% interest a year. And over many years that interest adds up.
 
terencej said:
Keep in mind that it would not just be interest. Part of that 32% you calculated is monthly service fees. Also there is an upfront Initiation fee. He probably signed and agreed to Credit insurance as well.

Look at the contract he signed and check what is being charged.

..call this lesson he is paying for "School fees" and do not do it again.
Click to expand...

It works out to 32% even with service fees. Which is up there, but not illegal.
 
I told my friend to go the bank get loan statement we noticed that his paying all in all R380. 00 service fees and retrenchment I forgot what else. He is paying for three things so it means the loan itself with interests its R3100.00

So if I take R380. 00 multiple by 48 months I get R18000 going to retrenchment, service fees and others. Indeed banks do know how to screw us, if he does indeed finish paying off the loan R18000 gone down the drain.
 
Last edited:
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X