When I saw the above, I was like WoW! 0% Interest Cash Loan. Maybank is so freaking generous…….. but as usual you must read the terms and conditions.
So, if you click on “For more information, please visit info page”, you will then see that it is pure bull shit!!!
Basically you will be imposed an upfront fee of 3.88%. Of course, those who are not educated my yours truly will think that 3.88% upfront interest is “good”.
Those of you who have been following me for years are very well aware that upfront interest loans’ effective interest rates are not low but in actual fact freaking high.
This Maybank Ezy Cash is basically a Personal Loan repackaged and called Ezy Cash where you will need to repay the loan within 6 months. Therefore, the effective interest rate for the cash loan is more than 10%.
I am once again going to show you why you should never opt for upfront interest loan, an in particular Personal Loan.
If you have been paying your credit card promptly, you will be imposed 15% interest on your Outstanding Balance.
Assuming you then have RM6K Outstanding Balance in you Maybank 2 Gold Cards Account. Therefore, you will be imposed interest rate of 1.25% per month (15%/12 months) on the Outstanding Balance. You then repay RM1K per month. Below is the interest you will pay for 6 months.
- Month 1 – RM6K x 1.25% = RM75
- Month 2 – RM5K x 1.25% = RM62.50
- Month 3 – RM4K x 1.25% = RM50
- Month 4 – RM3K x 1.25% = RM37.50
- Month 5 – RM2K x 1.25% = RM25
- Month 6 – RM1K x 1.25% = RM12.50
Therefore, if you repay RM1K monthly towards the RM6K Outstanding Balance with 15% interest, the total interest imposed is RM262.50
Now coming back to Maybank so called 0% Ezy Cash, by utilizing it, RM6K will be transferred to your Maybank Savings Account and you need to repay RM1K per month. And the total upfront fee of 3.88% = RM232.80.
Bros & Sis, RM232.80 (Ezy Cash 3.88% Upfront Fee) versus RM262.50 (Maybank 2 Cards 15% interest on Outstanding Balance) is about the same!!!
Like I have been telling you guys, don’t be fooled by so called “low” upfront interest rate!
Here, is another example, assuming once again you have RM6K Outstanding Balance in your Maybank 2 Cards account. If you repay RM1.5K monthly for four months, the interest imposed onto you is only RM187.50
- Month 1 – RM6K x 1.25% = RM75
- Month 2 – RM4.5x 1.25% = RM56.25
- Month 3 – RM3K x 1.25% = RM37.50
- Month 4 – RM1.5K x 1.25% = RM18.75
Total interest for 4 months (at 15% interest rate) is RM187.50 versus RM232.80 with Ezy Cash 3.88% Upfront Fee with 6 months equal repayments.
I tell you, if you want to be poorer instantly, simply just sign up for Personal Loan or other upfront interest loans (e.g. Balance Transfer Plan).
To learn more about Personal Loans, check out my article below:
If you are new to my blog, I strongly recommend that you click here and read my article titled Upfront Interest Personal Loan and Balance Transfer – the Quickest Way To Being Poorer.
If you are really in the shit hole of debt, what you should do cut your credit card into half! You have no discipline in controlling your spending!!! No point taking another loan to pay off a loan…. you are still in the same shit hole of debt!
And for those of you who can’t even save 10% of your salary, you better click here and read my article titled Prepare For Tomorrow So That You Can Sleep Soundly.
Having said the above, for those of you who have been consistently saving more than 20% of your monthly salary (which means you are able to control your spending), click here to my Facebook Post on Hong Leong Bank 0% Balance Transfer where you really really get 0% interest cash loan. Hong Leong Bank will deposit 0% cash loan directly into any bank of your choice!
Another Personal Financial Tutorial by GenX