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Loan Question

Discussion in 'The Pub' at netrider.net.au started by P J, Dec 15, 2007.

  1. Just a quick question on Bank loans.
    For example I apply for a $20,000 loan and my application is sucessful, do I start paying repayments straight away even though 'I havent spent any of the money' or do the repayments start when I actually 'draw on'/ spend the money I have borrowed ? (eg $20,000 on a car).

    Thanks for your help,
  2. yeah, it's the latter - you pay interest from the time the loan is drawn down. Be careful, though - if the bank offers to pay the cash into your savings account immediately, then it has been drawn down and you'll start paying interest (and there's a massive gap between the interest you pay them and the interest they pay you!) So if possible get the approval but don't draw down the loan until you have the vehicle lined up.
  3. +1

    Just remember, they're out to help themselves, not you.
  4. P J go and post in the welcome thread...