One of the most sought after products of the banks is the personal loan, because this type of loan is not mortgaged and we can use the money received for anything. In the case of a personal loan, the only guarantee for the bank is the borrower’s regular income. This time we were curious as to how much more favorable the banks’ personal loans are for paying over $ 250,000.
If you need a personal loan, the best way to find the best deal for you is to look at the offers in a comparative calculator . This time, we are analyzing $ 1,000,000 of personal loans that can be used for any purpose. The term of 36 months has been chosen, so the monthly repayment is not too heavy. We were wondering how much better interest rates are on personal loans for payments over 250,000. When browsing the calculator, you can see that at the best offers, the monthly repayment is around 32,000 dollars, while for lower payday loans, the monthly repayment will be over 34,000.
For the personal loans in the following composition, the interest period is fixed at all times, so there will be no change in interest or installments over the 3 year term.
Same loan with different interest rates
CIB has come up with a solution to offer the Advanced Personal Loan to customers with a monthly income of at least $ 250,000 at a more favorable rate . With this version of the loan, the bank expects them to receive this income. The table below compares this to a variant that only needs $ 100,000 to arrive at the bank.
Higher earners therefore have to pay back 70 thousand dollars less during the 3-year term. And in the monthly installment we can see a difference of about 2 thousand dollars:
Peak Pay Peak Loan
Pottsen Bank offers Top Paid for Higher Payers and Always Fixed Personal Loans for lower earners. The former can be accepted by those with a net salary of at least 280,000, while the latter is sufficient to prove income of 100,000.
At the peak of your Personal Loan, your 280,000th income can come in up to 2 installments . In addition, regular account usage, ie at least 4 transactions per month on the account, is a further condition for applying. Thus, we have to pay back $ 114,000 less by the end of the 3-year term than in the case of the MindFix loan.
Whenever you sign up online with the AlwaysFix Personal Loan, you get a 2% discount on your personal code by e-mail. The discount on online registration is available for contracts signed up to September 30, 2016.
Premium account Premium loan
The condition of a more favorable personal loan at Budapest Bank is that our net income of at least $ 250,000 per month should be deposited in an account opened at the bank, such as a Premium Plus account. In this case, the total amount repayable on the Premium Loan is $ 150,000 less than on a Loyalty Loan that can be taken without a Premium Income . The Special Loan on the Premium Loan is valid for applications submitted until September 30, 2016.
On our Facebook page , we come across such amazing comments every day that anyone with a net income of 250,000 has a personal loan. No matter how strange, no matter how much pay, there can be a life or never-returning occasion when even the more affluent decide to take out a few million dollars, which they will repay in a few years.
We have also seen comments in the comments about the injustice (to put it mildly…) that the bank lends money to higher income earners. Why should this be so? Although we do not know the pricing policy of banks, we assume, by simple logic, that everyone is more willing to lend to someone who knows they have a high salary.
Common misconception that credit rates should be about as low as deposit rates
It is also a common misconception that credit rates should be about as low as deposit rates. Why is this not the case? Just think that the National Deposit Insurance Fund guarantees the payment of the money deposited in the deposit (up to EUR 100,000, or approximately $ 31 million). Conversely, if we receive money from the bank in the form of a personal loan, what guarantee is there that we will repay it? Just our regular income.
Does the bank risk giving us a loan? Yes, the bank risks. It is obvious, therefore, that a higher income customer puts the bank at a lower risk, so a higher regular income provides a guarantee to the bank that it will repay the loan and, of course, its interest on time. Not surprisingly, banks would also like to get their money back, just think that if we lend to someone, we expect them to give it back to us.