Last June I decided to borrow €6,000 from AIB as personal loan after using their online calculator for repayments:
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I was told it would be €277.14 monthly repayments so
€277.14 x 24 = €6,651.36
€6,651.36 - €6,000 = €651.36
I thought €651.36 is resonable cost of €6,000 borrowed for 2 years & so I decided to go ahead.
What I did not know at this time is they also charge quarterly interst of 2.7% on balance outstanding at that quarter & I have to pay €530 extra in the name of this quarterly interest
So the total cost of credit is almost double then I thought
Also the interset date is before the collection date on that quarter so it will be charged on bigger amount
[broken link removed]
I was told it would be €277.14 monthly repayments so
€277.14 x 24 = €6,651.36
€6,651.36 - €6,000 = €651.36
I thought €651.36 is resonable cost of €6,000 borrowed for 2 years & so I decided to go ahead.
What I did not know at this time is they also charge quarterly interst of 2.7% on balance outstanding at that quarter & I have to pay €530 extra in the name of this quarterly interest
So the total cost of credit is almost double then I thought
Also the interset date is before the collection date on that quarter so it will be charged on bigger amount