Personal loan

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Fuma

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I heard that you will not pay any penalties and/or interest if you settle your loan before expiry date. Apparently it is a new law. Is this true?
 
yip, the NCA states that they may not charge a penalty fee if you settle the amount before the final date
 
i'd like some clarity on this too as im planning to squash my loan soon too.


anyone know if this is true, and if so anyone have links to back it up ?
 
Gothan said:
yip, the NCA states that they may not charge a penalty fee if you settle the amount before the final date
Click to expand...
That's interesting. Tx. I hate loans, credit cards - in fact any credit, BUT I have an emergency. I need R6000 now. I will pay it off next month or so. So I was thinking going the loan route, coz a credit card will take 7 working days to get approved.

I had a loan and a credit card before, but canceled both of them 3 months ago. Any other alternative?
 
Mashonisa...

i give you R6k you give me R8k. hahaha
 
I settled and my 5 year loan on year 2 and received no penalties.

But I did think with 1 month they'd penalise you ...
 
Does it apply to vehicle's?

My credit card interest rate is less than my vehicle loan interest rate...
 
Dolby said:
I settled and my 5 year loan on year 2 and received no penalties.

But I did think with 1 month they'd penalise you ...
Click to expand...

The thing is I hate debt or owing someone with all my heart.
I'd rather pay R7000 in one month for that R6000 loan than pay R6500 in few months. That's just me.
 
xrapidx said:
Does it apply to vehicle's?

My credit card interest rate is less than my vehicle loan interest rate...
Click to expand...

It goes for all loans, they are not allowed to penalise you for settling it early (And I know this specifically on cars, as the guy explained the entire NCA for me in detail last year when I bought a new car)
 
Gothan said:
It goes for all loans, they are not allowed to penalise you for settling it early (And I know this specifically on cars, as the guy explained the entire NCA for me in detail last year when I bought a new car)
Click to expand...

Here's what I got out of the contract:
9. Early Settlement of the Agreement
9.1 If this Agreement is a small or intermediate agreement, you may settle
this Agreement in full at any time, without notice, by paying the settlement
value to us. In such an event, the settlement value will be calculated as
follows:
The unpaid balance of the principal debt plus the unpaid interest and all
other fees and charges payable by you to us up until the settlement date.
9.2 If this Agreement is a large agreement, you may settle this Agreement in
full at any time, with or without notice, by paying the settlement value to us.
In such an event, the settlement value will be calculated as follows:
9.2.1 The unpaid balance of the principal debt, plus
The unpaid interest and all other fees and charges payable by you to us up
until the settlement date, plus
90 days interest charge, plus VAT thereon, if you do not give us written
notice of your intention to early settle, or
the difference between 90 days interest charge, and the notice period of up
to 90 days that you do give us plus VAT thereon.
Interest calculated at the account rate prevailing at that time.
 
xrapidx said:
plus
90 days interest charge, plus VAT thereon, if you do not give us written
notice of your intention to early settle, or
the difference between 90 days interest charge, and the notice period of up
to 90 days that you do give us plus VAT thereon.
Interest calculated at the account rate prevailing at that time.
Click to expand...

That's the one I'm concerned about. I don't want to settle in in 3 months (90 days).
 
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