Spreaders of Conspiracy Theories: Unmasking the Motivations Behind the Lies

[kurnell]

I heard a few Thais tell me that this is common in Thailand as there are good savings to be made eg. some banks off the first year interest free, so you can take a big chunk out of your loan. Anybody got any experience doing this in Thailand?

[clinique]

try bank of Ayyudha, (Krungsi bank) they have special promotions on at the moment.. for example, 30 years fixed interest at 4.5%pa.. cheaper than most other banks and dont need to worry about rate going up..

dont fall for the trap of 1 year promo loans, you justpay more later on,and it actually INCREASES what you owe the bank, makes sense right , have to get hit wit it sometime

[kurnell]

Actually I was planning to knock over 25% of the loan during the 1 year interest free so that I don't have to worry about interest later. Will try Krungsri bank.

[clinique]

check that the bank does not have "early repayment" penalties !!

ie: if you pay more than the agreed repayments or pay off amounts of principal some banks charge a 3% "fee" for doing so beforematurity of the loan..

just a word of caution..

[aurelius]

Bank of Thailand regulation on this point is clear. If you refinance within 3 years the bank can charge you (penalty must be disclosed on their fee schedule). If you repay with your own money or pay extra they cannot charge. You can complain (probably to consumer protection board) if this happens.

Also, I don't agree with the claim that banks charge more later when the rates are cheap up front. They are generally cheap because of the competition to book new business and grow the portfolio. Most banks are charging MLR minus something (.25 or .5) for the period following the fixed interest rate (which may be as long as the full term of the loan). It's not as though it goes to MLR or even MLR+. MLR is not necessarily the same for all banks either so it pays to take a close look at the actual numbers. MRTA insurance policies with the bank may also get you a further .25% off. Money Expo coming up - usually the best pricing to be had.