Interest: linked to market rates or fixed interest rate
Balloon Payment Yes/No: Yes
Minimum Requirement: Early-settlement option is available. There is no penalty on small and intermediate agreements.
Product Overview
An MFC instalment agreement offers you a financial facility to purchase a vehicle that is selected by you and is purchased by the bank. The bank then sells the vehicle to you over a negotiated period at an agreed interest rate. The deposit is subject to credit risk and is negotiable based on the age of the vehicle. You can also expect tax depreciation if you are a tax-orientated client.
Balloon Payment Option
The balloon payment option offers the benefit of reduced monthly repayments, with a lump sum repayment (referred to as the balloon payment) at the end of the agreement period.
At the end of the agreement period, you have the following options:
Apply to refinance the balloon payment amount for a further period. (Terms and conditions will apply).
Sell the vehicle.
Paying the full balloon payment amount and take ownership of the vehicle.
Rate Payment Options
MFC offers you the flexibility to select from one of two rate options:
Linked-rate Option
The Linked-rate Option provides you with the potential benefits of fluctuating interest rates. In the event that the interest rate increases during the agreement period, your interest rate and therefore your repayments will increase accordingly. The reverse applies if the interest rate decreases during the agreement period: then you will benefit from lower corresponding repayments.
Fixed-rate Option
The fixed-rate option provides you with peace of mind in terms of fluctuating interest rates. In the event that the interest rate increases during the agreement period, your repayments will not be affected and your interest rate will remain the same.
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Fincheck gathers information from numerous banking partners and presents it to the borrower in a simple, understandable way. Lenders benefit from an additional market place and extensive customer reach. Loan amounts vary from lender to lender. Fees, interest rates, loan amounts and credit scores influence the repayment terms. Lenders require personal details to control their risk and assist the government to combat theft, money laundering, terrorism. Fincheck does not endorse any particular product or company. We are an independent company. The information shown and provided is an opinion, based on numbers and must not be seen as advice or consultation.
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