Tisco Finance - Pay Out Loan Early.

[Spoonman]

As per thread title, is Tisco ok with an early payout ?

I tried to ask the girlie they sent out to gather my details and fill in the paperwork but she was clueless.

My finance is over 48 months but I would like to have it paid within 24.

[mr3cho]

I believe you can pay it off early but they will still charge the full term interest minus 50% discount.

[MJCM]

I believe you can pay it off early but they will still charge the full term interest minus 50% discount.

A friend of mine did the same (with Kiatnakin bank) and he got charged they way mr3cho describes it.

[Spoonman]

I believe you can pay it off early but they will still charge the full term interest minus 50% discount.

I thought full term interest was calculated from day one, hence the static 2.45% over the term of the loan**. what is the 50% discount ?

** Vehicle price + 2.45%/48 = monthly repayments.

Edited July 27, 2012 by Spoonman

[MJCM]

^ My friend got a 50% discount over the interest on the remaining terms.

[naboo]

So you'd get 2.45% (2*1.225) of the remaining 24 months payments as discount.

[John 1]

I believe you can pay it off early but they will still charge the full term interest minus 50% discount.

I thought full term interest was calculated from day one, hence the static 2.45% over the term of the loan**. what is the 50% discount ?

** Vehicle price + 2.45%/48 = monthly repayments.

I think you will find even if you pay out early they charge interest for full term. I don't know what other poster is referring to 50% discount or maybe just hear say from a friend as per usual.

[MJCM]

I believe you can pay it off early but they will still charge the full term interest minus 50% discount.

I thought full term interest was calculated from day one, hence the static 2.45% over the term of the loan**. what is the 50% discount ?

** Vehicle price + 2.45%/48 = monthly repayments.

I think you will find even if you pay out early they charge interest for full term. I don't know what other poster is referring to 50% discount or maybe just hear say from a friend as per usual.

I asked my friend (who doesn't live in Thailand anymore) and he confirmed my story that he got a 50% discount on the interest rates of the remaining terms. But this was Kiatnakin bank and no this was not Hearsay !! But noted that he didn't save a lot (only a couple of Thousand bahts (and he paid his 5 year loan of in 2 years))

Edited July 27, 2012 by MJCM

[stevenl]

I believe you can pay it off early but they will still charge the full term interest minus 50% discount.

I thought full term interest was calculated from day one, hence the static 2.45% over the term of the loan**. what is the 50% discount ?

** Vehicle price + 2.45%/48 = monthly repayments.

I think you will find even if you pay out early they charge interest for full term. I don't know what other poster is referring to 50% discount or maybe just hear say from a friend as per usual.

I asked my friend (who doesn't live in Thailand anymore) and he confirmed my story that he got a 50% discount on the interest rates of the remaining terms. But this was Kiatnakin bank and no this was not Hearsay !! But noted that he didn't save a lot (only a couple of Thousand bahts (and he paid his 5 year loan of in 2 years))

A 500,000 Baht loan at 2,45% would mean interest of 12,250 Baht per year. 50% saving over 3 years would mean a saving of almost 18,500 Baht. (of course I don't know the numbers.)

Hearsay means you did not experience it yourself, so yes, this is hearsay, and yes, this against the standard policy of Thai finance companies. That does not mean I guarantee it will not happen.

[Spoonman]

I believe you can pay it off early but they will still charge the full term interest minus 50% discount.

I thought full term interest was calculated from day one, hence the static 2.45% over the term of the loan**. what is the 50% discount ?

** Vehicle price + 2.45%/48 = monthly repayments.

I think you will find even if you pay out early they charge interest for full term. I don't know what other poster is referring to 50% discount or maybe just hear say from a friend as per usual.

I asked my friend (who doesn't live in Thailand anymore) and he confirmed my story that he got a 50% discount on the interest rates of the remaining terms. But this was Kiatnakin bank and no this was not Hearsay !! But noted that he didn't save a lot (only a couple of Thousand bahts (and he paid his 5 year loan of in 2 years))

so the relevance to Tisco (Ford Leasing) is somewhere about 0% yeah ?

[MJCM]

so the relevance to Tisco (Ford Leasing) is somewhere about 0% yeah ?

I tried to find that out so I send them an email asking :

Dear Tisco,

if I pay my car loan off early, do I get a discount on the interest rate or on the payments ?

Kind regards

and their reply was:

TISCO Bank Public Company Limited would like to inform you that to check customer' information, we need to know your Customer no., Name-Surname, Car register no.

For more information, please contact TISCO Contact Center 02-633-6000 press 9

Your Sincerely,

TISCO Bank Public Company Limited

Edited July 27, 2012 by MJCM

[phl]

I am in the same boat but with Tanachart Bank.

Firstly took me 4 days of everyday calling to get someone to answer a simple question about early payout.

When i eventually got the "account manager" or whatever the hell she was, that woman had no idea at all what principle, interest, residual or anything else was in both languages English and Thai.

Cut the story short, after 2 hours and me pretty much getting hysterical, because the nonsense and stupidity that came out of her mouth could not possibly be real.

I kind of understood, that no matter if you pay out early, you still have to pay the interest, however early payout they give 50% discount on the interest.

It still though unclear how they calculate the interest and how much of monthly payment is principle and how much is interest.

In my case, i have owned the car for 1 year, the payout figure is the same amount i borrowed, so either it means for first year i was only paying the interest

or (i have no idea) and for some crazy reason even with 50% discount on interest the payout figure after 1 year of payment is the same amount as i initially

borrowed.

Sorry to steal the thread, but if someone understands what i posted, please explain to me, because i am lost of words and worried if i call again, i may end up going on a shooting sphree

[aussiebebe]

Hi, my wife had a 36-month interest-free Tisco agreement when she bought a Chevrolet. She paid it off after 18 months, Tisco are fine with this, they just close the account. My wife paid an additional 1,200baht 'transfer charge' for Tisco to transfer ownership to her name in the blue book.

[stevenl]

It still though unclear how they calculate the interest and how much of monthly payment is principle and how much is interest.

Really easy, all the time you pay the same amount of interest and principal. Example: borrowed 500,000 Baht over 5 years @ 2,45% = 61,250 Baht interest. 500,000 + 61,250 = 561,250 Baht. 561,250 divided by 5 = 112,250 Baht payable per year or 9,354 per month.

[phl]

It still though unclear how they calculate the interest and how much of monthly payment is principle and how much is interest.

Really easy, all the time you pay the same amount of interest and principal. Example: borrowed 500,000 Baht over 5 years @ 2,45% = 61,250 Baht interest. 500,000 + 61,250 = 561,250 Baht. 561,250 divided by 5 = 112,250 Baht payable per year or 9,354 per month.

yeah i understand that part, where i am struggling is after paying for 1 year and the so called 50% discount on interest i am left with a payout amount being the same as the initial amount borrowed.

[JaiLai]

I am in the same boat but with Tanachart Bank.

Firstly took me 4 days of everyday calling to get someone to answer a simple question about early payout.

When i eventually got the "account manager" or whatever the hell she was, that woman had no idea at all what principle, interest, residual or anything else was in both languages English and Thai.

Cut the story short, after 2 hours and me pretty much getting hysterical, because the nonsense and stupidity that came out of her mouth could not possibly be real.

I kind of understood, that no matter if you pay out early, you still have to pay the interest, however early payout they give 50% discount on the interest.

It still though unclear how they calculate the interest and how much of monthly payment is principle and how much is interest.

In my case, i have owned the car for 1 year, the payout figure is the same amount i borrowed, so either it means for first year i was only paying the interest

or (i have no idea) and for some crazy reason even with 50% discount on interest the payout figure after 1 year of payment is the same amount as i initially

borrowed.

Sorry to steal the thread, but if someone understands what i posted, please explain to me, because i am lost of words and worried if i call again, i may end up going on a shooting sphree

I have paid off 2 car loans with Thannachart twice now, 4 year loans paid off in 2, no discount.

[phl]

I am in the same boat but with Tanachart Bank.

Firstly took me 4 days of everyday calling to get someone to answer a simple question about early payout.

When i eventually got the "account manager" or whatever the hell she was, that woman had no idea at all what principle, interest, residual or anything else was in both languages English and Thai.

Cut the story short, after 2 hours and me pretty much getting hysterical, because the nonsense and stupidity that came out of her mouth could not possibly be real.

I kind of understood, that no matter if you pay out early, you still have to pay the interest, however early payout they give 50% discount on the interest.

It still though unclear how they calculate the interest and how much of monthly payment is principle and how much is interest.

In my case, i have owned the car for 1 year, the payout figure is the same amount i borrowed, so either it means for first year i was only paying the interest

or (i have no idea) and for some crazy reason even with 50% discount on interest the payout figure after 1 year of payment is the same amount as i initially

borrowed.

Sorry to steal the thread, but if someone understands what i posted, please explain to me, because i am lost of words and worried if i call again, i may end up going on a shooting sphree

I have paid off 2 car loans with Thannachart twice now, 4 year loans paid off in 2, no discount.

May be you got another "qualified" account manager to do your settlements.

DO not know about other people experiences, but i honestly can not believe my experience where bank employee, supposedly account manager has no clue about loan structures, the terms and how the system works.

Nothing was explained initially, no statements are sent out with the balance after each payment and no explanations of any kind.

TO make matters worse, only selected people are allowed to discuss the matter with a client and even those do not seem to have a clue.

Makes one wonder, how exactly banks here operate and make money if the staff do not understand basic banking principles

[John 1]

I am in the same boat but with Tanachart Bank.

Firstly took me 4 days of everyday calling to get someone to answer a simple question about early payout.

When i eventually got the "account manager" or whatever the hell she was, that woman had no idea at all what principle, interest, residual or anything else was in both languages English and Thai.

Cut the story short, after 2 hours and me pretty much getting hysterical, because the nonsense and stupidity that came out of her mouth could not possibly be real.

I kind of understood, that no matter if you pay out early, you still have to pay the interest, however early payout they give 50% discount on the interest.

It still though unclear how they calculate the interest and how much of monthly payment is principle and how much is interest.

In my case, i have owned the car for 1 year, the payout figure is the same amount i borrowed, so either it means for first year i was only paying the interest

or (i have no idea) and for some crazy reason even with 50% discount on interest the payout figure after 1 year of payment is the same amount as i initially

borrowed.

Sorry to steal the thread, but if someone understands what i posted, please explain to me, because i am lost of words and worried if i call again, i may end up going on a shooting sphree

I have paid off 2 car loans with Thannachart twice now, 4 year loans paid off in 2, no discount.

May be you got another "qualified" account manager to do your settlements.

DO not know about other people experiences, but i honestly can not believe my experience where bank employee, supposedly account manager has no clue about loan structures, the terms and how the system works.

Nothing was explained initially, no statements are sent out with the balance after each payment and no explanations of any kind.

TO make matters worse, only selected people are allowed to discuss the matter with a client and even those do not seem to have a clue.

Makes one wonder, how exactly banks here operate and make money if the staff do not understand basic banking principles

Nothing explained to you and you still signed. No wonder bank make money.

[phl]

I am in the same boat but with Tanachart Bank.

Firstly took me 4 days of everyday calling to get someone to answer a simple question about early payout.

When i eventually got the "account manager" or whatever the hell she was, that woman had no idea at all what principle, interest, residual or anything else was in both languages English and Thai.

Cut the story short, after 2 hours and me pretty much getting hysterical, because the nonsense and stupidity that came out of her mouth could not possibly be real.

I kind of understood, that no matter if you pay out early, you still have to pay the interest, however early payout they give 50% discount on the interest.

It still though unclear how they calculate the interest and how much of monthly payment is principle and how much is interest.

In my case, i have owned the car for 1 year, the payout figure is the same amount i borrowed, so either it means for first year i was only paying the interest

or (i have no idea) and for some crazy reason even with 50% discount on interest the payout figure after 1 year of payment is the same amount as i initially

borrowed.

Sorry to steal the thread, but if someone understands what i posted, please explain to me, because i am lost of words and worried if i call again, i may end up going on a shooting sphree

I have paid off 2 car loans with Thannachart twice now, 4 year loans paid off in 2, no discount.

May be you got another "qualified" account manager to do your settlements.

DO not know about other people experiences, but i honestly can not believe my experience where bank employee, supposedly account manager has no clue about loan structures, the terms and how the system works.

Nothing was explained initially, no statements are sent out with the balance after each payment and no explanations of any kind.

TO make matters worse, only selected people are allowed to discuss the matter with a client and even those do not seem to have a clue.

Makes one wonder, how exactly banks here operate and make money if the staff do not understand basic banking principles

Nothing explained to you and you still signed. No wonder bank make money.

is it a troll day today?

Have you not read the OP? no one seems to have an idea or a uniformed information on the matter

[funcat]

It still though unclear how they calculate the interest and how much of monthly payment is principle and how much is interest.

Really easy, all the time you pay the same amount of interest and principal. Example: borrowed 500,000 Baht over 5 years @ 2,45% = 61,250 Baht interest. 500,000 + 61,250 = 561,250 Baht. 561,250 divided by 5 = 112,250 Baht payable per year or 9,354 per month.

yeah i understand that part, where i am struggling is after paying for 1 year and the so called 50% discount on interest i am left with a payout amount being the same as the initial amount borrowed.

...this is a good explaination above...they don't do adjustable loans here,so you just simply pay the loan amount plus interest and payments are set.You did not give any numbers here,so in my understanding,if you've had a loan for 48 months and payed 12 already,the remining 36 months of interest amount only(!) will be given a 50% discount ..

[thaicbr]

As far as I'm aware all loans here the interest is applied on a yearly basis. My gf is currently paying of several loans and credit cards and is getting interest discounts on all accept KTC.

Sent from my GT-P1010 using Thaivisa Connect App

[Spoonman]

Cool, looks like they will not only be happy that I pay out the loan early they will also give me a discount, A refreshing change on finance back home in OZ in that they will charge and early settlement fee.

[stevenl]

Cool, looks like they will not only be happy that I pay out the loan early they will also give me a discount, A refreshing change on finance back home in OZ in that they will charge and early settlement fee.

Yes, early settlement fee but no interest on the years you're not using the finance. Here if you have finance for 4 years and pay off in 1 year you'll be charged interest over the remaining 3 years as well, 50% if the information from some here can be believed or 100%.

[moonbarman]

we had a small loan from tisco 100,000 over 3yrs had 15mnths left and still owed about 49,000 we paid it off in june this year and closed account and only paid approx. 43,000 so they do discount for early repayment, hope this helps,

[DJH77]

Why don't you check the Contract. I'm

with Krungsri Auto and i made sure that the 50% discount clause was in the contract before i ever signed it. Like anywhere in the world it's what's in the contract that matters.

[steveromagnino]

I am in this exact position with Ratchathani leasing (part of Thanachart) and have asked them what happens with early payment.

There are 18 months left and they will discount the interest remaining only by 50% approx if I pay out early.

Works out better if the next buyer takes over the contract if they are ok with the financing term left.