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 Posted: Sun, 31st Jan 2016 21:50 Post subject: Bank loans and interest rates |
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My question (hopefully) has some kind of logical answer, because I can't explain it. My parents need about 7K euros, my father wont accept that kind of money from any of his children or friends. So he went to a bank to get a loan, no problem since he can pay. Yeah yeah, he should wait and put money aside, but it's a bit urgent. He came to me to show the offer he got, his Dutch is average at best so he lets us check things first. It seems you have to pay a whopping 8.6% interest each year. This is with a fixed period of time (so not an open loan or whatever it's called in English) and a fixed monthly payment.
How is an interest rate of 8.6% possible on a fixed loan of just 7K when banks get money for barely anything? The fuck is happening? Is there some kind of logic I can't think of?
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| Posted: Sun, 31st Jan 2016 22:11 Post subject: |
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How do you think banks went from a crisis to making loads of money in no time again?
I can get a 5% loan over 4 years for that amount so it sounds like your father is getting a bad deal though.
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| Posted: Sun, 31st Jan 2016 23:38 Post subject: |
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Is that in NL? Which bank is it? This rate is at Rabobank, where he has an account.
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| Posted: Mon, 1st Feb 2016 18:38 Post subject: |
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tell him if he would rather borrow from crooks then from his own children, that u would be dissapointed in him, its family money given to crooks ? Give him the cash and tell him u want 3 % or some holiday trip payed by him in x years or take your kids to disneyland , dont do it for free as that hurts pride.
we are getting 0.10 % intrest from the banks, and they charge 8000% more , fuck that scum, they give oldfolks ther worst deals , and they train their sales people to screw people over. there was a dutch documentary about this not so long ago where the salesperson is trying to hardsell older folks on hidden camera super expensive products they did not even ask for in the first placefor a simple loan
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HubU
VIP Member
Posts: 11364
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| Posted: Mon, 1st Feb 2016 20:24 Post subject: |
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Here in Belgium, loans for non-car/non-real estate related expenses have a rate of around 9-9.5%.
"Music washes away from the soul the dust of everyday life." ~Berthold Auerbach
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| Posted: Mon, 1st Feb 2016 20:57 Post subject: |
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8.5% is the regular yearly rate here 
| Lutzifer wrote: | | and yes, mine is only average |
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| Posted: Mon, 1st Feb 2016 21:03 Post subject: |
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don't know how high dutch rates are in general, but here in austria you might as well just overdraw your bank account at 9% interest rate.
provided you have enough cash, why don't you just offer it to him as a loan at ~5% or some favor? should ease his conscience enough. i know parents just don't want to take anything from their kids, so just treat it as a business deal.
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Nalo
nothing
Posts: 13522
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| Posted: Mon, 1st Feb 2016 21:50 Post subject: |
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Last edited by Nalo on Wed, 3rd Jul 2024 06:06; edited 2 times in total
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| Posted: Mon, 1st Feb 2016 21:55 Post subject: |
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Just checked via check24.de .
7000 over 48 months=7500 in total =3.69%
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Nui
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Posts: 5720
Location: in a place with fluffy towels
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| Posted: Tue, 2nd Feb 2016 00:14 Post subject: |
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| Nalo wrote: | Set up a fake loan site.
Direct father to fake loan site.
He unknowingly takes your money and pays you back. |
But end it with a mastermind reveal 'it was ME all along! harr harr harr"
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nouseforaname
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Location: Toronto, Canada
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Invasor
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Location: On the road
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| Posted: Tue, 2nd Feb 2016 17:43 Post subject: |
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lol just get a credit card 
| Lutzifer wrote: | | and yes, mine is only average |
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| Posted: Tue, 2nd Feb 2016 19:25 Post subject: |
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| Posted: Thu, 4th Feb 2016 16:58 Post subject: |
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my CC annual interest rate is 16%
| Lutzifer wrote: | | and yes, mine is only average |
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| Posted: Thu, 4th Feb 2016 17:43 Post subject: |
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Mine is 22.99%
I win 
I always use CCs during grace periods only.
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| Posted: Mon, 8th Feb 2016 19:41 Post subject: |
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| PumpAction wrote: | Just checked via check24.de .
7000 over 48 months=7500 in total =3.69% |
This is really cheap and barely even pays the time for somebody at the bank talking to you. The anual rate would be 1.7 %. My loan for an apartment is at around 4.5 %. They could not make it cheaper because the amount was small and they did not believe that I would spent 30 years paying it back. Perhaps your father is having the same problems. Too little money for too little time.
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