Can you really afford this loan?
$10 a day for a $8,000 loans sounds great, but can the borrower really afford it?
themediaslut saw this ad and was wondering if such loan ads should show how much monthly repayment one has to make for the loan instead of the daily repayment scheme.
Base on the ad, the loan is for Sgd8,000 for an income of Sgd1,600 with a repayment of Sgd10 a day.
After the CPF deduction of 20%, the borrower would take home Sgd1280.
For Sgd10 a day, the repaymeny works out to Sgd300, based on a 30 day a month average.
After paying for the loan, the borrower’s take home pay is now Sgd980 a month.
Is this something the borrower can live with for the next 30 months, inclusive of interest?
