Do you need cash, but you don’t know which bank will borrow the cheapest money? We asked them what the cost of borrowing USD 4,000 for two years would be. Are you curious about what offers came to us? Details in the following ranking.
takes a loan at least once a year. Borrowers most often applied for loans in the amount of USD 1,000 to 5,000. Interestingly, among the lenders, the largest group were not those with the lowest incomes. It turns out that the appetite for loans increased as earnings increased. People with an income over USD 5,000 net on average borrowed three times more often and applied for larger amounts than the less affluent.
What loan were we looking for and for whom?
Following market trends, we asked banks to send offers to customers who would like to borrow USD 4,000 for two years. The calculations have been prepared for a two-person household with a monthly net income of USD 5,500 obtained from an employment contract of indefinite duration.
We considered only offers for internal customers, i.e. people who have had a personal account in a given bank for a year and have already used the bank’s credit products.
How did we compare the offers?
When choosing the cheapest cash loan, we took into account the most important parameter, i.e. the total amount to be paid.
We received loan calculations from 16 banks. After comparing the offers, it turned out that the total amount to be paid could be from USD 4,347 to 5,440.
This means that by choosing an offer from the end of the rate, we will overpay almost USD 1,100, i.e. over 1/4 of the borrowed amount. Details in the table below.
The best cash loans for internal customers
Good Finance has prepared an unrivaled offer of cash loans. Our model family, borrowing USD 4,000 for two years, will have to pay USD 4,347 in twenty-four monthly installments of USD 181.14. Such costs will be affected by 7.99%. commission (the loan interest rate is zero). Interestingly, both regular and completely new customers can benefit from the offer on identical terms.
Good Credit Bank Polska has prepared a more expensive offer by nearly USD 40. Our model clients, when borrowing USD 4,000 for two years, will have to pay USD 4,385 in twenty-four monthly installments of USD 182.72. Such costs will be affected by an 8.99 interest rate (the commission is zero).
The last remarkable offer (almost USD 235 more expensive) was sent to us by E-Money. Our model family, borrowing USD 4,000 for two years, will have to pay USD 4,582 in installments equal to USD 190.89. Such costs will be affected by an interest rate of 8.49 and a commission of 5%.
In total, we compared 16 offers. In the offer at the end of the rate, the total amount to be paid was as much as 5440 USD, which means that it was more expensive than Good Finance’s winning offer by as much as USD 1 093! This shows that even when taking a loan for a small amount, you need to carefully compare offers, otherwise you can overpay dearly.