| 1. |
How do I calculate my monthly hire purchase instalments using flat rate of interest ? |
| |
Multiply the principal
amount of finance by the interest rate and the tenure
of finance to determine the interest payable.
Add this figure to the principal amount to determine
the total amount payable.
Divide the total amount payable by the tenure of
finance (number of months) to determine your monthly
instalments.
|
| 2. |
Does Maybank allow
for partial redemption? |
| |
No, partial
redemption is not allowed. However, you may opt for
early settlement whereby interest rebate is calculated
using the following formula :
|
|
n (n+1)
|
X
Term Charges (i.e. total interest amount payable)
|
 |
|
N (N+1)
|
Where "n" represents the unexpired
period of hiring (expressed in months); and "N"
represents the original tenure of finance (expressed
in months).
But the following conditions shall apply:
| i. |
In the event of
early settlement, a charge of 20% of the total
term charges will be payable under the HP Agreement,
pro-rated for the unexpired hiring period (calculated
in months). |
| ii. |
In addition, a prepayment fee of 1% of the original
loan amount will be levied. |
| iii. |
The
Hirer is also required to serve a 30-day notice
in advance of the settlement date. Otherwise,
interest in lieu of notice will be levied. |
| |
|
| Note:
If the loan is being assigned to another financial
institution, the same charges stated above shall
apply. |
|
| |
|
| 3. |
How will I know whether
my Hire Purchase application will be classified under
the Hire Purchase Act? |
| |
If the purchase
price (less COE) of your car does not exceed
S$55,000 it will be classified under the Hire Purchase
Act.
Where the purchase price (less COE) of your car exceeds
S$55,000 it will be subject to Common Law and will
not be classified under the Hire Purchase Act.
|