Early Termination of Loan

[joe_fox]

We have a 36 months loan, Nov. 2008 po na approve ang loan and at the same time nag advance payment kami for 1 month para maliit lang ang interest na ibigay..

Mitsubishi Adventure Supersports '08
Bank: PNB
Amount Financed: P 650,400.00
Interest: 135,088.08
Add on Factor: 20.77%
Term: 36 months
Amortization: P 21,820.00

ngayon, nagpa recompute kami, kasi full payment na namin ang loan this December 2009.. so it makes 13 months lang ang loan namin.. sa PNB po may 12 months, 18 months, 36 months, 48 months na terms.. pagpa recompute namin, lumalabas na 19.83% ang binigay sa amin kung full payment kami this december 2009.. justifiable po ba? hindi ba dapat ma belong kami sa 18 months na interest which is 8.68%?

Outstanding Balance 11-26-09 P 479,546.71
Interest Due: (11-26-09 12-28-09) 5,255.35
Release Fee: 800.00
TOTAL AMOUNT DUE: P 485,602.06
if babayaran namin this December 2009..

while if pina-abot namin ng 36 months with monthly amort. of P 21,820.00, ang total lahat na babayaran nmin is P 490,900.00

ang liit naman ata ng binawas ng PNB kung babayaran nmin this December 2009.. eh due ng loan namin is Nov. 2011 pa.. tapos around 6,+++ lang difference kung babayaran namin this dec. 2009..


sa mga loans gurus diyan.. paki explain po.. i just read the paper na galing sa dad ko.. tinanong ko sila pano na compute ng PNB, eh hndi daw inexplain sa kanila, kasi nagmamadali daw sila erpats..

thanks

[dr. d]

i read it three times, but i still did not understand it. perhaps it's because i'm not a finance person.
someone, please explain to us in simple terms...

[Phoenix67]

may mali siguro sa computation.... try to bring along an accountant when you talk to the bank again... and check the fine print of your loan contract

[joe_fox]

in simple terms:

dapat mas mura ang babayaran namin kasi early namin e full pay ang loan.. which is 13 months nlng instead of 36 months.. so dapat, ang interest rate namin is nasa 18months term which is 9% more or less..

bakit halos same lang ang babayaran namin if we pay it in 36months, like 6,+++ difference lang if we fully pay in Dec. 2009 insted of Nov. 2011..

[Robenson]

We have a 36 months loan, Nov. 2008 po na approve ang loan and at the same time nag advance payment kami for 1 month para maliit lang ang interest na ibigay..

Mitsubishi Adventure Supersports '08
Bank: PNB
Amount Financed: P 650,400.00
Interest: 135,088.08
Add on Factor: 20.77%
Term: 36 months
Amortization: P 21,820.00

ngayon, nagpa recompute kami, kasi full payment na namin ang loan this December 2009.. so it makes 13 months lang ang loan namin.. sa PNB po may 12 months, 18 months, 36 months, 48 months na terms.. pagpa recompute namin, lumalabas na 19.83% ang binigay sa amin kung full payment kami this december 2009.. justifiable po ba? hindi ba dapat ma belong kami sa 18 months na interest which is 8.68%?

Outstanding Balance 11-26-09 P 479,546.71
Interest Due: (11-26-09 12-28-09) 5,255.35
Release Fee: 800.00
TOTAL AMOUNT DUE: P 485,602.06
if babayaran namin this December 2009..

while if pina-abot namin ng 36 months with monthly amort. of P 21,820.00, ang total lahat na babayaran nmin is P 490,900.00

ang liit naman ata ng binawas ng PNB kung babayaran nmin this December 2009.. eh due ng loan namin is Nov. 2011 pa.. tapos around 6,+++ lang difference kung babayaran namin this dec. 2009..


sa mga loans gurus diyan.. paki explain po.. i just read the paper na galing sa dad ko.. tinanong ko sila pano na compute ng PNB, eh hndi daw inexplain sa kanila, kasi nagmamadali daw sila erpats..

thanks

Ok ill give it a try...

The contract you signed is still for 36 mos with fixed interest rate. It doesn't necessarily follow that if you paid early, the interest rate will drop because it is already agreed upon by you and the bank in the original contract.

If you will insist to apply the 18 mos interest rate, you are in effect changing the terms and conditions of the contract without them agreeing on it and I don't believe they will.

The discount given to you is not because the interest rate is lessen to the 18 mos period but because of rebate, which is provided by law and not because they necessarily wanted to.

That is how contract works and I hope this helps.

[kihtmaine]

Ok ill give it a try...

The contract you signed is still for 36 mos with fixed interest rate. It doesn't necessarily follow that if you paid early, the interest rate will drop because it is already agreed upon by you and the bank in the original contract.

If you will insist to apply the 18 mos interest rate, you are in effect changing the terms and conditions of the contract without them agreeing on it and I don't believe they will.

The discount given to you is not because the interest rate is lessen to the 18 mos period but because of rebate, which is provided by law and not because they necessarily wanted to.

That is how contract works and I hope this helps.

Tsk tsk tsk Agree!

[kihtmaine]

Amp! double post please delete this one

[olm093]

agree din po kay mr. robenson...

from the bank's point of view, ang concept nyan ay ganito:

loan was availed way back nov. 2008, which was a year ago. if you originally went for the 18month term, you would be paying a higher monthly amortization (most likely almost double of the P21k you've been paying), which means the return of the bank's funds would be faster at pwede na nila ulit i-reinvest or ipa-loan ulit ung amount na un. kikita na sila ulit sa funds na un, instead of nakapautang pa sa borrower.

this is the opportunity that they have lost from nov. 2008 to present, since you only paid your amortizations based on the longer term (mas maliit ang bumabalik na amoun sa bank), kaya hindi nila maibigay sa 'yo ung standard rate nila for the 18-mo. term.

hope this helps.

[Robenson]

double post sorry