Option 1:
Community First Credit Union provides an unsecured personal loan that is suitable for my friend. This credit union has the second-lowest advertised rate out of the three short-listed loans I have chosen. This is a positive aspect as this means that only 6.12% of the total amount will be charged yearly as interest. Although, Community First has an application fee of $195 to acquire a loan but there are no other costs that other money lenders charge such as upfront, documentation, ongoing annual or monthly or a missed payment penalty fee. It also provides a term of 1 - 5 years which caters for the needs of my friend. This is also a variable loan meaning that the interest rate will change as the market goes up and down. This is both …show more content…
A variable loan such as this can vary its interest rates. Summerland's advertised interest rate is 6.22% but can reach 8.22%, a to 2% increase. These funds will be available for my friend on the day of application, so they will be able to purchase the motorbike. Additionally, there is a minimum and maximum of between $3000 and $60,000, this for the $8290 my friend needs to borrow. Summerland has application fee of $175 and also an ongoing monthly fee 0f $5 which will increase the expenses of the loan by $300 over the 5 year term. As this bank offers an unsecured loan this unlike a secured loan, which involves the bank having legal rights to obtain the secured item in the circumstance of default until the money loaner is satisfied with the satisfaction with the compliance of the agreement. Negatively, this loan has the highest rate out of the three options and the most extra associated …show more content…
It has an advertised interest rate of 5.99%, but as this is a variable loan, the rate can differ from market influence. G&C's interest rate can climb up to 16.99%, this a substantial increase of 11%. Although the bank only charges $150 in extra costs for an application fee, the lowest compared to Community First Credit Union and Summerland's unsecured personal loans. Additionally, the bank has a minimum lending amount of $1000 and no maximum which caters to my friend's needs. The bank allows has no minimum in regards to the length of the term, but a 7 years maximum. This suits the preferred amount of time for my friend, 5 years. Moreover, the loan is unsecured so in the event of default, the bank will not have legal rights to take an valuable item from the
Community First Credit Union provides an unsecured personal loan that is suitable for my friend. This credit union has the second-lowest advertised rate out of the three short-listed loans I have chosen. This is a positive aspect as this means that only 6.12% of the total amount will be charged yearly as interest. Although, Community First has an application fee of $195 to acquire a loan but there are no other costs that other money lenders charge such as upfront, documentation, ongoing annual or monthly or a missed payment penalty fee. It also provides a term of 1 - 5 years which caters for the needs of my friend. This is also a variable loan meaning that the interest rate will change as the market goes up and down. This is both …show more content…
A variable loan such as this can vary its interest rates. Summerland's advertised interest rate is 6.22% but can reach 8.22%, a to 2% increase. These funds will be available for my friend on the day of application, so they will be able to purchase the motorbike. Additionally, there is a minimum and maximum of between $3000 and $60,000, this for the $8290 my friend needs to borrow. Summerland has application fee of $175 and also an ongoing monthly fee 0f $5 which will increase the expenses of the loan by $300 over the 5 year term. As this bank offers an unsecured loan this unlike a secured loan, which involves the bank having legal rights to obtain the secured item in the circumstance of default until the money loaner is satisfied with the satisfaction with the compliance of the agreement. Negatively, this loan has the highest rate out of the three options and the most extra associated …show more content…
It has an advertised interest rate of 5.99%, but as this is a variable loan, the rate can differ from market influence. G&C's interest rate can climb up to 16.99%, this a substantial increase of 11%. Although the bank only charges $150 in extra costs for an application fee, the lowest compared to Community First Credit Union and Summerland's unsecured personal loans. Additionally, the bank has a minimum lending amount of $1000 and no maximum which caters to my friend's needs. The bank allows has no minimum in regards to the length of the term, but a 7 years maximum. This suits the preferred amount of time for my friend, 5 years. Moreover, the loan is unsecured so in the event of default, the bank will not have legal rights to take an valuable item from the