When getting a loan from a bank, one of the decision-making factors is the interest rate together with other determinant factors like the quality of service and the speed of response.
In the recent months we have been hearing of the continuous increase of European Centra Bank (ECB) reference rates as a tentative to contain inflation by applying monetary policy instruments. The ECB announced a 0.5% increase in July 2022, 0.75% in September and a further 0.75% in November 2022 in the main borrowing rate. Markets see ECB rates reaching a peak of 3% at some stage in the second quarter of next year.
In these times of economic uncertainty and continuing inflationary pressure, we would be looking at how best we can manage our finances, both on a personal basis and on a corporate business level. It is wise to understand whether there is the potential to save on our current interest rate, as better interest rates lead to better cashflow management.
What can we do to benefit from better rates on existing loans?
An existing loan can be replaced by a new loan at better terms. This is normally referred to as Loan Refinancing. There are various benefits for refinancing a loan; the main objective is an improvement in the repayment commitments, which improves the overall financial position, including cashflow and thus helps in saving money.
Is it the right time to consider refinancing?
If you can benefit from any or a mix of any of the below improvements …
- Better Interest Rates – a lower rate of interest will lower the loan repayment, leaving us with excess fund when compared to the previous repayment.
- Better Term – another way how to benefit from lower commitment is the spread of the capital repayment over a longer term. Although the same capital is to be repaid, spreading it over more repayments provides flexibility.
- Better Security – following frequent capital repayments, the gap between the value of security (normally increases in value) and the outstanding balance (decreases by time) widens. The borrower can therefore benefit from this in different ways:
- either request to be granted an additional new loan on the excess security
- or request to get some of the excess security released.
… then Now is the right time!
Why FCM Bank and what are we offering?
We at FCM Bank understand that moving your loan could lead to extra expenses. Our aim is to make these improvements simple and quick, while keeping expenses to a minimum. With our current limited offer, all fees related to processing will be waived and the architect and legal fees will be partially refunded. We are also guaranteeing our clients a grace period of stable loan repayments.
If this is of interest to you and you want to know more of how you can benefit from this offer, you may call us on 79800128 or send us an email on email@example.com to set up a meeting with our professional team.
FCM Bank holds a Maltese banking licence since 2010 and is regulated and supervised by the Malta Financial Services Authority (MFSA).
Our offices are located at Suite 3, Tower Business Centre, Tower Road, Swatar.
Third Edition Oct/Sept 22
Experienced Corporate Manager with a demonstrated history of working in the financial services industry. Skilled in Portfolio Management, Business Planning, Risk Management and Customer Service. Strong sales professional with a Executive Master in Business Administration from University of Malta.