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Entrepreneur's Universal Bank is up and running

BrianMik said:
Not sure if this question has been asked anywhere else:

Term is set to 90 days now, ok. Lets say I take out a loan for a 90 day term with 75% APR. For 90 days, this would be 18.49%. If I paid back the loan early...lets say in 30 days, would I be required to pay the full 18.49% or 6.16%? Does it only count per day interest with a default after the 90 day period or must you pay for 90 days of interest regardless?
(worked in the mortage business for quite a while, so this is really interesting to me) :silly2:

I personally would be interested in loans of just a few days but it would be nice to have the option to go longer (up to 90 days or whatever) if I felt the need to.
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You won`t have to pay interest for 90 days in case you pay back loan earlier. It`s calculated on daily basis so if you pay back after 30 days it will be 6.16%
 
Jolana said:
You won`t have to pay interest for 90 days in case you pay back loan earlier. It`s calculated on daily basis so if you pay back after 30 days it will be 6.16%
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This is great to hear. Thank you for answering so quickly.
 
Just to clarify.. There is NO Repayment penalty at all correct? There is no flat fee charged? Also, lets say I took a loan of 100 peds out and paid it off the same day. What would the calculation return? 75% / 365 days a year = 21 pec? Or 0 pec? Because the loan was held for a full day?
 
Tbh my friend, i am not gonna deposit anything at all for the moment.. not until they change the economical shit with decay and so on.. so i am not happy to say i will not borrow anything :(
 
Xerces said:
Just to clarify.. There is NO Repayment penalty at all correct? There is no flat fee charged? Also, lets say I took a loan of 100 peds out and paid it off the same day. What would the calculation return? 75% / 365 days a year = 21 pec? Or 0 pec? Because the loan was held for a full day?
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There is no penalty, yet minimum 0.5 PED interest is in place. So if you take out item same day you pay either 0.5 PED or 1 day interest if it`s bigger than 0.5 PED.
 
Mice said:
How come the interest rate aint show for the true loan period. How hard can this simple formula be to implement ? Seriously U paid alot for the bank and I would as an owner demand this to be implemented. Just by reading through this post theres already alot of confusion on how to calculate and I am 100% sure you will loose potential customers ingame if they dont know what the real interested rate is on the spot.

GL
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Agreed, but as well as the % cost for the chosen period you need the annual rate too, so that you can easily check across the banks and compare their rates. The one offering the lowest % in terms of annual rate is giving you financially the best deal. You might also want to check the rates of all the banks against other sources of loan funding. What, for example, does a credit card company charge in your country for a loan repaid within 30 days?
 
Fin said:
Agreed, but as well as the % cost for the chosen period you need the annual rate too, so that you can easily check across the banks and compare their rates. The one offering the lowest % in terms of annual rate is giving you financially the best deal. You might also want to check the rates of all the banks against other sources of loan funding. What, for example, does a credit card company charge in your country for a loan repaid within 30 days?
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Well, I`d say interest rates in EU never will be close to RL banks rates. At leastr not in close future.
 
kygon said:
can we make deposits into your bank and whats the interest rate for this?
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Soryy, Ky, that would be a Bank. We know these are "banks", so that ability is beyond them...
 
Mice said:
How come the interest rate aint show for the true loan period.
GL
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Fin said:
Agreed, but as well as the % cost for the chosen period you need the annual rate too, so that you can easily check across the banks and compare their rates. The one offering the lowest % in terms of annual rate is giving you financially the best deal. You might also want to check the rates of all the banks against other sources of loan funding. What, for example, does a credit card company charge in your country for a loan repaid within 30 days?
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There isn't necessarily a "true" pre-determined loan period if it is being calculated daily with a 50pec minimum charge based on when the loan is paid back. The Annual rate shown is absolutely necessary to be able to compare between banks.

Why bother showing the 30 day rate if that doesn't mean anything? Surely everyone isn't going to wait until the last day everytime to pay back their loan if they don't need to. The 30 day/90 day or whatever is just a maximum term. They could show a Daily rate along with (or instead of) the Annual if that is what people desire but anything else will lead to more problems IMO.
 
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BrianMik said:
Why bother showing the 30 day rate if that doesn't mean anything? Surely everyone isn't going to wait until the last day everytime to pay back their loan if they don't need to. The 30 day/90 day or whatever is just a maximum term. They could show a Daily rate along with (or instead of) the Annual if that is what people desire but anything else will lead to more problems IMO.
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Good idea - will include it in my letter to MA with needed updates:) Thanks
 
Loan interest rate changed to 49% annual. Enjoy.
Also adjusted loan values for many items.
 
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interesting.. alright. it looking a little better after reading about your service... but at first glance where I saw 49% immediatly I was thinking usury lol

nice service though hopefully it does well :)
 
I love the 90 days period. Already used your bank and seems the best among the 3 active banks. However other banks offer more ped for some items , but also have to mention you offer 2x more ped in some case. I really like it.

When MA announced only 4 banks will come this VU, I thought yours is the 5th bank. I was amazed you proved me wrong, not to mention you were the first to open the bank to the public.:) Nice job!:thumbup:
 
must have missed the 'annual'

I never saw the word 'annual' interest rate - or APR or any real legal documentation decribing the rates that banks demand when I used the teller screen. I did see the loan terms of a couple banks that say 49% up to 99% for 10-90 days. My first thought was that this was the rate for the loan period. Will anyone admit to using a bank yet and verify through your experience that it truely is a yearly rate or the loan timeframe rate?

Thanks.
 
It is a YEAR % rate. I checked it myself. Asked a friend to get a loan of 5K ped for a month and payback in 5 minutes. He payed around 10 PED extra. It was in the very beginning when annual % was 75. I calculated and that money was exactly 1 day interest if you divide those 75% by 365 days.
Hope this helps.


Jolana
 
Nice loan period ;) GZ!

But now the interest rate is "a little" over another bank...

GZ again
 
I really love your design, its so different and abstract compared to the other banks which just have a futuristic feel . . . I just love the pyramid !

Gratz on your purchase and I hope the banks do great ;)
 
codrutyasad said:
Nice loan period ;) GZ!

But now the interest rate is "a little" over another bank...

GZ again
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Now it is adjusted to more competitive rate:) Also adjusted loan terms to fit people`s needs. Somehow i do believe that big loan people would like to get for longer than 1 month. And this justify slightly higher interest rate I believe.

So now it is 25% annual rate and 120 days term.

Enjoy
 
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wow really nice.. and I love the long term loan approach... +++Rep


I love that you are willing to make the loaning process very personal and allow one on one conversations.


I also love how you explain how the whole loan process works including how interest is charged for the year..


Not to mention I was very taken back with the bank design you choice, in fact its does resemble my rl bank (last one that looks like its all made from stones in Brooklyn, NY)
 
Thank you for nice words Nicole. nice to see that people like what I `m doing:)
 
Loan values adjusted... again:) Mostly raised. In general - this will be neverending story. Prices will change and i will do my best to keep those updated.
 
Very very nice, long term , nice markup's BUT almost double interest rate ?

GZ anyway for the long term
 
Good Luck

Hi there.

GL with the new venture, love the design ....... i didnt think i would use the banks but after reading your thread i might just go check yours out :D
 
thanks for the loan :) didn't need all the peds, but can't pay loan back partial. oh well, but great service.

will you be adding values for 'rare' and 'uncommon' bps?
 
Nice service.

I needed to free up a few peds the other day and so did a tour of the banks. Not sure why the one at Twin isn't operational but thats their business.

I looked at the bank in PA but wanted a bigger loan for my item (Vigi Harness (F)). Then I tried the one in New Oxford - oh dear, is that all?

Then I came to this bank. Okay, so the interest is higher than elsewhere but the loan amount offered was significantly better than anywhere else. The extra interest here might cost me (if I've got my sums correct) an extra 7 or 8 ped over the term of the loan. It was a no brainer. This place got my business.
 
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