We are looking at taking up a loan from a bank but the manager of the branch where my wife checked quoted an annual interest of 10%! This is much more than I anticipated and is very different from the interest you get when saving money.

Has he tried to scam us or is this really what we can expect to pay?

What is the loan for?

You will get different rates for mortgage, line of credit, personal loan.... etc.

In any case, of course the loan will be a lot more than saving money. I don't want to sound rude, but this is a common knowledge.

Moved to Banking

Personal loans average 10-11% mortgage MMR is around 7%...its no scam, just that's the rates here

Try buying a motorbike on credit, it's @ 24% pa !!!

The interest rate isn't a scam but the bank is likely to insist on the borrower taking out an insurance policy for the duration of the loan.

That can be expensive and normally is a deal breaker if you don't agree. All premiums to be paid up front (deducted from the loan) and is no doubt structured that way to ensure that the bank picks up their commission on the deal. The bank staff gain a nice bonus from this element. Not sure if any of the premiums are returned if the loan is paid off early - if so, likely to be a rather hefty 'admin' charge as part of the final transaction.

10% looks good. Bangkok Bank is asking a minimum 12% with insurance to a maximum of 18% without.

http://www.bangkokbank.com/DocumentsLoan/LoanRates_2Sep2015.pdf