3% Personal Loan - I Just Take It!

Show Me The Money

As I mentioned before , I always get calls from multiple banks wanting to loan me money and sometime coincidentally, one call after another. Sometimes, I think they must be colluding with each other to keep on calling me.

Usually, I will just ignore them and say that I am busy and not interested. But last Thursday,I just decided to be polite and hear the sales agent out. Usually, I will reject them and put down my phone.

But one magic word came out from the sales agent. The bank is offering me RMxx,xxx amount with only a effective 3% per-annum  interest rate if I take up a 1 year loan. They even throw in a few months of interest free payments!!

Wow, even though I don't like to take up debt un-necessary, but I told myself that this is truly a wonderful opportunity to use money to make money!!

The monthly installments will be captured monthly as payment required in my credit card and reduces my credit card limit. Nevertheless, 3% is way way lower than if I use a cash advance from my credit card. 

I remember some banks demanding like 6-7% of interest payment which I deemed "expensive" for my liking.

So I decided to take up the loan and I don't need to sign any application forms. I just need to go thru a recorded phone conversation on the terms (just ~5 mins excluding the time it took for me to ask questions) and conditions , and viola, the loan was transferred to my desired bank account the next day!!!

So what are the risks here:

The risk here:

I believe is my own forgetfulness. I sometimes forget to pay my credit card off. And the penalty can be high. E.g, I was overdue RM50, and the penalty was like RM10!! It is nearly 20%.

The pro: Cheap and fast credit :D

I could even dump the money into my current housing loan and I still make some savings off my >4%++ housing loan.

Nevertheless, personal loans is always a two edge sword , so only do it if you have everything figured out what to do next with the money.

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