There is certainly a limitation to your quantity which can be charged for a SACC however they are nevertheless extremely expensive in comparison to other loans.
- an establishment cost of 20% associated with amount loaned
- a month-to-month cost of 4% regarding the amount loaned
With a standard loan the quantity of interest you are charged reduces over time as you repay it as you’re able simply be charged interest regarding the quantity outstanding. The monthly fee applies to the whole amount originally borrowed regardless of how much you have paid back with a SACC.
The comparable rate of interest modifications according to the length of time you are taking the mortgage over however it is often between 100% and 500% per year.