In September, bank customers usually seek financing for expenses related to the school year, recent renovations before winter or late vacation. Where can they currently borrow USD 15,000 on the most favorable terms?
We asked banks offering cash loans to respond to a survey in which we asked about the terms of such a loan for a family of three (parents plus a child) with a monthly income of USD 4,380 net of an indefinite employment contract. The loan is taken for a period of 3 years, amounts to USD 15,000 and is repaid in monthly equal installments.
We asked for two scenarios to be considered: for an internal customer (having an account at the crediting bank) and external, i.e. one who does not have an account at the given bank and does not want to open it. We waited for answers until September 10. In our ranking were the banks that returned the survey on time.
Internal customer loan
The best loan terms in the amount of USD 15,000 in September 2015 can be obtained by persons who have an account. The interest rate on such a loan is only 8.93% per annum.
Moreover, the bank does not charge any commission for its granting. With these parameters, the monthly loan installment will be USD 476.51, while the total amount to be repaid is USD 17,154, over USD 400 less than in the second Good Credit Bank statement.
Good Credit Bank offers a lower interest rate (7.99% per annum), but imposes on the borrower a one-time commission of 4% of the loan amount. For this reason, the total repayment amount will be USD 17,596, while the monthly installment USD 488.78.
The former will offer its clients an interest-bearing loan of 9.99% from the 2.99% commission, which will translate into USD 534.48 of monthly installment and USD 19 241 of the total amount to be repaid. It will be even more expensive at Good Lender USD 19,769 in total, with a monthly installment of USD 549.15. Such high costs are primarily a ‘merit’ of the commission (up to 15.99%), the interest rate is closer to the market average – it is 8.49% per annum.
Loan to an external customer
- Cash loan ranking – September 2015 (internal customer)
- Cash loan ranking – September 2015 (external customer)
In September we have a big surprise in the category of external customers. Which in previous months was rather halfway up. This is the only bank where an external customer can borrow USD 15,000 in September 2015 and obtain the conditions according to which he will pay back less than USD 18 thousand.
The bank offers a very attractive interest rate (5.97% per annum) and a slightly less attractive commission (9.5%). This translates into USD 499 of a monthly installment and USD 17,982 of the total amount to be repaid in 3 years.
The list of cash loans and borrowings for external customers
It is closed by Good Lender with the same loan terms as for customers with an account. The group of banks with a total repayment amount of more than 19,000 has increased from two in the offer for internal clients to six.
Just a month ago, in the August ranking, we did not observe such large differences in offers for internal and external customers. However, it can be seen that the banks decided to appreciate more people who, in addition to credit, want to set up an account with them (or already have one). Offers for them are clearly more attractive.