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Ask for internal rate of return while asking for a loan to save money

Posted By On 1:25 PM Under
1. I read an interesting update about loans being given banks and financial institutes at so called 1% per month which to a layman appears cheaper than 18% per annum commercial loan.

2. However fact is that since one is paying EMI and thus effectively this loan works out to 21% considering the additional 2% processing charges in the beginning in name of preparation of file.

3. Infact they are duping gullible loan seekers as they should tell the customers their internal rate of return which is the actual rate at which the bank is charging the individuals.


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