Common housing loan packages offerd by financial institusions Term Loan A facility with regular predetermined monthly instalments. Instalment is fixed for period of time, say 30 years Instalment payment consists of the loan amount plus the interest Overdraft facility A facility with credit line granted based on predetermined limit No fixed monthly instalments as the interest is calculated based on daily outstanding balance Allows flexibility to repay the loan anytime and freedom to re-use the money Interest charged is generally higher than the term loan Term Loan and Overdraft combined A facility that combines Term Loan and Overdraft. For example, 70% as term loan and 30% as Overdraft Regular loan instalment on the term loan portion is required Flexibility on the repayment of overdraft portion
Posted on: Wed, 26 Jun 2013 07:24:05 +0000