DAYLIGHT ROBBERS
I Have a Loan in HSBC Bank. Due to dire necessities i wana postpone mah EMI for two months... I was Happy to know that they charge only qr.50 for this but SHOCKED TO HEAR THAT the thirds month EMI would include the actual EMI PLUS THE PREVIOUS TWO MONTHS INTERESTS. { EMI CONSISTS OF PRINCIPLE + INTEREST }....
Day Light Robbery... WORST THAN DAY LENDERS.....
Banks here rob their customers as there is no competition. Best not to take any loans and if you must do it in your own country.
(based on my collegues experience), they will allow you to skip your monthly amortization but you have to pay a certain amount (small amount only) but I think only for one month and upon approval by higher management. If you have a history of being a good payor, easy to avail of this option. But if you are a perineal skipper, maybe a more drastic action! Saying these base on my collegues experiences). I have also have loan with HSBC but I pay regularly and reliogiously!
WHAT B^%#&^$%
But seriously, you have re-scheduled your loan - they had allowed to do that easily without hitting your personal credit rating or charging a higher interest rate. It is norm for them to charge you only the interest due without taking into account your principal. If you do not like it then transfer your outstanding to an islamic finance firm – such as first finance etc.
Ricky – did you sign on your loan (capital, interest, EMI) on an excel sheet??? You can calculate your EMI by yourself (before signing any loan papers) through various online sites – this is if you cannot calculate the same using excel. Do remember that interest out here is not on Recurring balance for car loans – it is a fixed rate.
since it is deferred payment you will pay interest on the interest.
That is how they make money.
If you pay late, the banks will penalize you. If you pay ahead of maturity date, the bank will penalize you as well.
You just have to pay the monthly amortization on time and you'll be ok. And if you do this, you'll be surprised the bank will send you a generous loan offer before the end date - just to keep you buried in loans.
:(
and in March this year finished a 3-year loan I took from them. My car still has 1.5years to go...
Yet I don't understand what you are talking about with regards to your loan now being QR5,000 more...
If you take your loan over a certain period, with fixed installments, how does it grow to QR5000 more than you originally borrowed?
On my personal loan, I never paid more than I should have in all three years I had it.... I took advantage of the Ramadam specials where they give you 1 - 2 months off on your payments to be added to your months at the end of your intallments... ie if you were supposed to finish paying on 1 June 2011, you will now finish 1 July 2011 or 1 August 2011, depending on how many payments you skip and how many years to took the option... They take a QR 50 fee for each month that you defer.... but my interest hasn't been affected... and even if it had, I doubt by thousands....
It is better to pay off that differed Interest amounts.
rather than they accumulate that amount to your existing loan balance. Otherwise you will be paying Interest on interest. Some banks will not ask you to pay that differed interest on next months but they accumulate to existing balance to increase their revenue!!
So take care when you need to defer an interest based loan payment.
It is common with any Interest based loan system.
You are commited to pay agreed Interest (say 9%/12month) of the loan balance every month whether you are paying or not paying the principal amount.
But the other loss that you have not calculated is the loss in increased interest by differement of payment.
That may come more than your 2 month Interest installements.
Only Islamic banking can give you peace of mind in such situatuions.
Bank is Bank....that is the only business in the world with legal profits, by cheating on us.
thats LEGAL ROBBERY AT ITS BEST, ha ha ha... welcome to the club
I took a loan from IBQ and they have me a workout excelsheet showing clearly the working and balance loan at end of every month . After 3 years , the balance on their system does not tally with the excelsheet given to me and signed by both parties at time of taking the loan . They state that the person who gave the loan at that time calculated wrongly on the excelsheet but our system is correct now . So who pays the price of this ? The customer ofcourse who is MEEEEE . The price i pay for their mistake is more than QAR 5000 . I am in dilemma -how to challenge this .
If any words of advise -Pls advise .
This is not robbery, this is banking :)
This is why you should always read the terms and conditions. Did you really think they'd let you take a break from payments 100% - this is the same the world over.
Better avoid take loan from any bank...
bank always have way to get some money.
This is what their business...
are in the business of making money. They're good in compounding your interest with your misery.
even friend was planing to skip