Your figures don't make much sense and the interest on a loan is always expressed on a monthly basis, not yearly.reflexline wrote:I had always wondered what the MFIs charged for loans. I figured it was around 30% per annum so I was surprised to hear that the sister-in-law had been approved for a $700 loan at 45% interest for two years. $380 interest on a $700 principal, secured by assets - not a bad business to be in at all.
Table of bank and MFI deposit rates?
I thought the govt introduced a prakas, restricting to 18 percent, is that being ignored or not actually implemented?reflexline wrote:I had always wondered what the MFIs charged for loans. I figured it was around 30% per annum so I was surprised to hear that the sister-in-law had been approved for a $700 loan at 45% interest for two years. $380 interest on a $700 principal, secured by assets - not a bad business to be in at all.
https://www.nbc.org.kh/download_files/l ... ap-Eng.pdf
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Could depend if it is an APR or basic interest rate.104 wrote:I thought the govt introduced a prakas, restricting to 18 percent, is that being ignored or not actually implemented?reflexline wrote:I had always wondered what the MFIs charged for loans. I figured it was around 30% per annum so I was surprised to hear that the sister-in-law had been approved for a $700 loan at 45% interest for two years. $380 interest on a $700 principal, secured by assets - not a bad business to be in at all.
https://www.nbc.org.kh/download_files/l ... ap-Eng.pdf
18% is the APR. So technically 45% doesn't make sense for several reasons
My best guess, it's 22,5% APR ( a bit over 1,8% a month which is pretty standard) which, to most khmers, means 45% for 2 years.
It also depends if the principal is refunded as a lump sum at the term or on a monthly basis.
My best guess, it's 22,5% APR ( a bit over 1,8% a month which is pretty standard) which, to most khmers, means 45% for 2 years.
It also depends if the principal is refunded as a lump sum at the term or on a monthly basis.
ok i think you meant the Interest rate was 18% and the APR 22.5% which would make sense, as reading again the prakas does state interest rate.logos wrote:18% is the APR. So technically 45% doesn't make sense for several reasons
My best guess, it's 22,5% APR ( a bit over 1,8% a month which is pretty standard) which, to most khmers, means 45% for 2 years.
It also depends if the principal is refunded as a lump sum at the term or on a monthly basis.
One way to circumvent the 18% rule is to charge loan fees. No restriction on those.
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Yeah but Loan fees will inflate the APR. I don’t know if the restriction is on interest rate or APR.Bosco wrote:One way to circumvent the 18% rule is to charge loan fees. No restriction on those.
And I can’t be bothered looking it up
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Prasac always seemed a bit sketchy to me. Those rates were unsustainable.
Any other institutions offering 7 percent interest but with some capital behind it?
Any other institutions offering 7 percent interest but with some capital behind it?
Prasac are currently offering 7.75% per annum on the $. They currently have a "save & win promo"
Deposit $1,500,000 or more and instantly get an iPhone X. Other shitty prizes also offered including $10,000 deposits get a kettle, $20,000 gets you an iron.
HKL offering 7.8% (& backed by a large Thai bank)
Kredit (backed by Phillips Bank [whoever they are]) offer 7.5% for 12 months, upto 8% for longer terms.
Vision Fund (backed by the The Almighty God) offer a Social Investor Account and 8% p.a. or 8.25% for 24mth.
Deposit $1,500,000 or more and instantly get an iPhone X. Other shitty prizes also offered including $10,000 deposits get a kettle, $20,000 gets you an iron.
HKL offering 7.8% (& backed by a large Thai bank)
Kredit (backed by Phillips Bank [whoever they are]) offer 7.5% for 12 months, upto 8% for longer terms.
Vision Fund (backed by the The Almighty God) offer a Social Investor Account and 8% p.a. or 8.25% for 24mth.
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Could someone please explain why the APR is not 45% annually.
cheers.
cheers.
Here is an up-to-date table of all relevant banks and MFIs, showing interest rates, SWIFT costs, and current total deposits with each institution.
Side note: Prasac is currently running a promotion for Khmer new year, offering 8% for a 12 months fixed-deposit (7.75% with monthly interest).
Side note: Prasac is currently running a promotion for Khmer new year, offering 8% for a 12 months fixed-deposit (7.75% with monthly interest).
The maximum is 18% per annum by government regulation. I think they might go around it a little with fees but if it is 22.5%/year that's quite high.reflexline wrote:I had always wondered what the MFIs charged for loans. I figured it was around 30% per annum so I was surprised to hear that the sister-in-law had been approved for a $700 loan at 45% interest for two years. $380 interest on a $700 principal, secured by assets - not a bad business to be in at all.
It's been a while and I wonder whether anyone knows whether there have been any changes; i.e. are there any FTD rates now that are higher than 8%?
I thought Vision Fund was higher but it looks like they have been bought out by a Korean bank and now their website is offline.
Are there any signs that the government is going to back off their policy of 18% per annum as a max, or are they sticking to this?
Thanks!
I thought Vision Fund was higher but it looks like they have been bought out by a Korean bank and now their website is offline.
Are there any signs that the government is going to back off their policy of 18% per annum as a max, or are they sticking to this?
Thanks!
mumanow wrote:Here is an up-to-date table of all relevant banks and MFIs, showing interest rates, SWIFT costs, and current total deposits with each institution.
Side note: Prasac is currently running a promotion for Khmer new year, offering 8% for a 12 months fixed-deposit (7.75% with monthly interest).
LOLC offering 9% on KHR & USD for 60month term (!) and 8.5% 36mth
https://www.lolc.com.kh/eng/Deposit.aspx
Kredit offering 9.65% KHR & 8.25% for 36mth and 9.5% & 8.25% for 24mth.
https://kredit.com.kh/en/pages/deposit/ ... it-account
https://www.lolc.com.kh/eng/Deposit.aspx
Kredit offering 9.65% KHR & 8.25% for 36mth and 9.5% & 8.25% for 24mth.
https://kredit.com.kh/en/pages/deposit/ ... it-account
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