Some lending institutions offer cash rebates or gifts as incentives. These may appear attractive but do note that they are always “subject to terms and conditions”. A minimum loan amount and a certain term are often the requirements for these rebates or gifts. There is no free lunch. The value of the rebates or gifts is usually reflected in the borrowing costs. So, customers are actually paying for what they are being rewarded with.
When you consider taking out a loan, you should prudently take into account your personal financial circumstances and actual needs. Do not apply for a loan or increase the loan amount simply because of rebates or gifts.
12 Decemeber 2019