4

According to the TOS written here: https://www.sc.com/sg/personal-banking/tnc/en/_pdf/cb_all-tnc.pdf (bottom of page 51)

37.2 The following terms and charges will apply if you close the CashOne account or fully repay the CashOne loan:

(a) we will calculate and notify you of the outstanding balance and the payment due date for the entire outstanding balance; and
(b) you must pay the entire outstanding balance together with an early redemption fee $250 or 3% of the outstanding principal, whichever is higher.

37.3 If you fail to pay the entire outstanding balance on or before the due date stipulated by us in full, finance charges at the prevailing interest rates will be charged from the due date until the date such sums due (including finance charges) are paid in full.

37.4 The entire outstanding balance includes the total sum you owe us in respect of CashOne loan according to our records. This includes any fees, charges, goods and services tax, interest, costs, and expenses.

And here is my loan details:

Loan Amount: $9,800
Loan Period: 36 months
Actual Applied Rate: 7.5% per annum
Effective Interest Rate: 13.69% per annum
One time processing fee: $199 (So they actually reimbursed me $9,601)
Monthly instalment: $333.47

And so far I have cleared the payment for my 7th month. As of today it's my 8th month with it.

Let's say this is the table for the payment:

Month #       Loan Balance        Interest       Principal      Repayment
-------------------------------------------------------------------------
1             $9,800.00           $111.81        $221.66        $333.47
2             $9,578.34           $109.28        $224.19        $333.47
3             $9,354.15           $106.72        $226.75        $333.47
4             $9,127.40           $104.14        $229.34        $333.47
5             $8,898.06           $101.52        $231.95        $333.47
6             $8,666.11            $98.87        $234.60        $333.47
7             $8,431.51            $96.20        $237.28        $333.47
8             $8,194.24            $93.49        $239.98        $333.47
9             $7,954.25            $90.75        $242.72        $333.47
-------------------------------------------------------------------------
Total                            $ 912.78      $2,088.47      $3,001.23

So am I correct to say that, if I successfully get a termination on the 9th month, I will need to pay, roughly,

Payment Needed On Cancellation
    = Loan Amount - Paid Principal + $250 fine
    = $9,800.00 - $2,088.47 + $250
    = (roughly) $7,961.53

Am I correct that the total payment I need to make at cancellation this loan is at $7,961.53, have I understand the TOS correctly? (Assuming I'm not dragging the payment for the interest to happens, plus assuming there is no special other charges happens to me)


Note:
Obviously I can just file an email to the bank and ask them the exact question, but I highly doubt they would even do the verification for me since they are losing customer, so I may as well post it here for academic purpose.

Edit

If anyone is interested, here is my excel sheet for the calculations. The correct calculation of termination on 9th month is $8,204.25.

https://docs.google.com/spreadsheets/d/1JraULJMtPg81wiLqZKhFqo-Gs8efNgnwJLt73rfnAzc/edit?usp=sharing

Edit 2

For those who are interested, I have successfully closed it, and the total payable calculated is actually $8,204.21. I do not know where the 4 cents go, but anyway, it's a good relief that I have finally closed this nightmare.

3

In month 9 you still owe $7,954.25. You need to pay that, plus the $250. At that line, you haven't made the payment, the rest of the line with next month's payment due. So you haven't paid the $242.47 in col 4.

  • Ah yea! Correct. I shouldn't have paid the 242.47, so it should be $7,954.25 + $250, which is around $8204.25 – Lionel Chan Feb 24 '16 at 13:15

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