Bank Loan - How to choose?

Let’s say the following banks are offering you the following rates :

Bank A :

Year 1 – 1.33%

Year 2 – 1.73%

Year 3 – 2.93%

(a) Lock-in period : 2 years

(b) Legal fees subsidies up to $3k. Claw-back period is 2 years.

(c) Re-pricing fee is non-chargeable.

Bank B :

Year 1 – 1.54%

Year 2 – 1.54%

Year 3 – 3.30%

(a) Lock-in period : 2 years

(b) Legal fees subsidies up to $3k. Claw-back period is 3 years.

(c) Re-pricing fee is chargeable at $500.

Which bank loan is a better choice?

Check out how to do bank loan comparison in our book.