Tax Loans

Closed Thread
  1. #1

    Join Date
    May 2006
    Location
    Siu Sai Wan
    Posts
    1,660

    Tax Loans

    I have been receiving the letters from the bank advertising their "Personal Tax Loans".

    I have been preapproved with an amount that is over twice the amount of my actual tax payable.
    On the face of it, it seems quite simple, but when you dig a little further, it gets confusing - to be expected I suppose.

    There are handling charges, annual charges, monthly interest, penalites for not drawing down the total approved amount and early repayment penalties. Plus incentives of applying early. But it still seems good value with an AFR of under 3%.

    The minimum monthly payment is not a problem, but I am wondering what others experience with these loans are. Have I missed anything? Can I borrow the full amount I have been approved for, even though I will only use half of it for tax payment purposes?


  2. #2

    Join Date
    Aug 2005
    Location
    Clear Water Bay (In Da Jungle)
    Posts
    9,968

    6 x your monthly salary is the max you can get i thinks. the interest rate is better than ur usual loan and if you repay on time its quite a good deal.


  3. #3

    Join Date
    Oct 2006
    Location
    Sarcasm - because beating the crap out of people is illegal
    Posts
    14,622

    Banks offer the option of the extra loan above your tax bill amount in order to get you to borrow more money and thus make more money from you.

    The question is: Can you afford to give the bank more of your hard-earned dosh?


  4. #4

    Join Date
    May 2006
    Location
    Siu Sai Wan
    Posts
    1,660
    Quote Originally Posted by Claire ex-ax:
    Banks offer the option of the extra loan above your tax bill amount in order to get you to borrow more money and thus make more money from you.

    The question is: Can you afford to give the bank more of your hard-earned dosh?
    At a interest rate of less than 3% it is almost too good to pass up.
    I have no problem repaying the money, but it almost does sound too good to be true.

    Looks like I might take advantage of the situation.

  5. #5

    Join Date
    Oct 2006
    Location
    Sarcasm - because beating the crap out of people is illegal
    Posts
    14,622

    Your money, your choice if you want to give it to the bank's shareholders instead of spending on yourself... or me.


  6. #6

    Join Date
    Aug 2005
    Location
    Clear Water Bay (In Da Jungle)
    Posts
    9,968
    Quote Originally Posted by Crocodile:
    At a interest rate of less than 3% it is almost too good to pass up.
    I have no problem repaying the money, but it almost does sound too good to be true.

    Looks like I might take advantage of the situation.
    i have used them before and its is good.