I took a loan of N2750000 and was asked to pay Back in four years with 22% interest rates.
Abeg, una wey dey banking sector, how much is 22% of N2750000?
My account guy say I must drop N90,000 every month in four years to settle my debt.
How accurate is this? Abey help, before I turn slave to this guy bank.

Are you for real? You know so little and your loan was approved. That's strange.

^^^
Yes! This is very real.
You see, I work with a prestigious firm, so every month they're to deduct from my salary account but you know Jobs don't last forever.
I'm also running a small trade.

22% of N2750000 is N605,000.
then add up both of them is= N3,355,000
then divide it by 48(4 yrs)=N69,895
in real sense u are to pay a minimum of 70k per month.

vincentont: 22% of N2750000 is N605,000.
then add up both of them is= N3,355,000
then divide it by 48(4 yrs)=N69,895
in real sense u are to pay a minimum of 70k per month.

Guy u are correct, he is suppose to b paying N70k/month for 4years.

pls is it a bank loan, what are their requirement? luv too . pls contact Nelson on :nomoruyi@yahoo.com, 08027285330.
thanks

outside other charges, you should be paying N86,641.71 per month. use loan ammortization schedule on excel and you'll be fine.

vincentont: 22% of N2750000 is N605,000.
then add up both of them is= N3,355,000
then divide it by 48(4 yrs)=N69,895
in real sense u are to pay a minimum of 70k per month.

Please before you rush to spit out numbers, do your check well. @Op, don't sign away your life and sweat for a loan without knowing what you are signing for. Is your loan on a simple or compound interest? If it is on compound interest, then your banker may be right. Please do your checks well and ask questions. Thanks.

Firstly, no bank in Nigeria will give you such loan at 22% interest for a whole of 4years
It is most likely to be 22% p.a which is 605,000 x 4years
Moreover, why would you need this amount for 4years? It's bad for business and looks unrealistic.
If this is true, better get the service of a business councellor before you go deep into what you'll regret for the rest of your life

Oga, please before you sign the dotted lines let me advice you from experience. I did the same thing two years ago and i am just about to be delivered from it.My friend it was not easy paying back a loan every month from your salary. Firstly if you are not taking this loan to acquire an asset or for a sure business please reconsider. Secondly be sure of the terms and condition before you agree to sign. I sincerely hope i have been able to prevent someone from falling into a trap i fell into.
All the best

Na wa o, such exorbitant rates and people are still borrowing. Please op as earlier said, if its not a business you need the money for, stay away.

vincentont: 22% of N2750000 is N605,000.
then add up both of them is= N3,355,000
then divide it by 48(4 yrs)=N69,895
in real sense u are to pay a minimum of 70k per month.

my tots exactly!

omaojo1: outside other charges, you should be paying N86,641.71 per month. use loan ammortization schedule on excel and you'll be fine.

[quote author=vincentont]

thanks, I'll have to schedule a meeting with my account guy. the only problem is... he speaks in 'bank codes' it make things confusing for me.

mystiqueem:

my tots exactly!

Don't be intimidated by his financial jargon. Tell him to explain in simple english. If he can't, then he doesn't have your interest at heart. Or better still, go with someone who understands the ins and outs of loans. My sis, when it comes to financial transactions, trust no one and always watch your back. A word is enough for the wise.

vincentont: 22% of N2750000 is N605,000.
then add up both of them is= N3,355,000
then divide it by 48(4 yrs)=N69,895
in real sense u are to pay a minimum of 70k per month.

Sir,we appreciate ur effort in cracking this nut. However, don't just give answers that are not correct...especially in a public forum where someone is seeking professional advise.

Your loan of 2.75m @ 22% P.A for 48 months will run on a "reducing balance method" but most banks would want u to have a fixed monthly payment. Total monthly payment:principal and interest inclusive is about 86,641.71. At the end of the 4 year-tenure, you would have paid the bank 1,408,802.27 as interest and 2,750,000 as principal. My take on this is;don't use bank's loan to satisfy your endless desire for "good" things rather invest it in a venture that can comfortably repay the loan without touching ur monthly salary. Thank you

abuchilag:

Sir,we appreciate ur effort in cracking this nut. However, don't just give answers that are not correct...especially in a public forum where someone is seeking professional advise.

Your loan of 2.75m @ 22% P.A for 48 months will run on a "reducing balance method" but most banks would want u to have a fixed monthly payment. Total monthly payment:principal and interest inclusive is about 86,641.71. At the end of the 4 year-tenure, you would have paid the bank 1,408,802.27 as interest and 2,750,000 as principal. My take on this is;don't use bank's loan to satisfy your endless desire for "good" things rather invest it in a venture that can comfortably repay the loan without touching ur monthly salary. Thank you

Thank you so much, I appreciate your input.
I was so eager to start a small 'side' trade so I can pay my bills [electricity, rents etc] that has increased exponentially cos my firm said they won't increase salary just because cost of living is high.
Now am learning that the 'mercy loan' is actually my 'nightmare loan'.

I know with God, I'll try to pay as quickly as I can and put this mess behind me.
If I had know it would cost more problem to get a loan, then I would have eaten less and trekked more!

mystiqueem:

Thank you so much, I appreciate your input.
I was so eager to start a small 'side' trade so I can pay my bills [electricity, rents etc] that has increased exponentially cos my firm said they won't increase salary just because cost of living is high.
Now am learning that the 'mercy loan' is actually my 'nightmare loan'.

I know with God, I'll try to pay as quickly as I can and put this mess behind me.
If I had know it would cost more problem to get a loan, then I would have eaten less and trekked more!

Mystiqeem,
How far with your loan stuff?
Hope you have been able to "weather the storm"

abuchilag:

Mystiqeem,
How far with your loan stuff?
Hope you have been able to "weather the storm"

I'm still paying o.
Its even harder for me to maintain payment (trying to restructure the payment plan)
Coughing out close to hundred thousand is no joke esp now dat d economy is bad &
That I'm not getting regular monthly income. (Quit Job)
Biz is not as profitable or glamourous as I hv hoped.
(Too many expenses, utility bills & hidden charges and not enuf clients)

It is well.

Two more years of torture...

Unless I start thinkn like a criminal and fast!

mystiqueem:
Two more years of torture...

Unless I start thinkn like a criminal and fast!

Sorry sis

I was thinking of going for loan before but i just changed my mind altho it is something very small

Like you said no one knows the future or what can happen tomorrow

I pray God will see you through

I wish u all the grace to weather thru it all.

Hmm...bank loan no be moimoi. It nearly ruined my old man years back.

Try to streamline your expenses as best as you can.

All in all, do not give up along the way, cos that would spell doom for you...and I pray it will not be so for you.
Already u have gone thru 2yrs successfully. You will pull thru the rest.

Wishing u the best.

vincentont:
22% of N2750000 is N605,000.
then add up both of them is= N3,355,000
then divide it by 48(4 yrs)=N69,895
in real sense u are to pay a minimum of 70k per month.

Vince what position did you take last term?

mystiqueem:
Two more years of torture...

Unless I start thinkn like a criminal and fast!

You are paying roughly half what you borrowed in interests.Does it make any sense to you?

#605,000

mystiqueem:
I took a loan of N2750000 and was asked to pay Back in four years with 22% interest rates.
Abeg, una wey dey banking sector, how much is 22% of N2750000?
My account guy say I must drop N90,000 every month in four years to settle my debt.
How accurate is this? Abey help, before I turn slave to this guy bank.