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Any loan/lending experts??

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  • 06-11-2009 9:10pm
    #1
    Trapattoni
    Closed Accounts Posts: 109 ✭✭


    I want to take out a 30k loan to travel around the world (rather not explain what trip exactly but just know it costs 30k)

    Do you think a bank would lend me this money and allow me to pay it off over 20 or so years ?

    I have 120k Inheritance in my bank that I do not want to touch and use for a house at some point in next few years. Maybe they will allow me do this using the 120 as a gaurantee if i cant pay it off over the years??

    Thanks guys


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    #2
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Trapattoni wrote: »
    I want to take out a 30k loan to travel around the world (rather not explain what trip exactly but just know it costs 30k)

    Do you think a bank would lend me this money and allow me to pay it off over 20 or so years ?

    I have 120k Inheritance in my bank that I do not want to touch and use for a house at some point in next few years. Maybe they will allow me do this using the 120 as a gaurantee if i cant pay it off over the years??

    Thanks guys

    You wont get a personal loan spread out over that period of time. For that sort of time period you would be talking about a mortgage but no property to secure the account on... They wont secure it against your inheritance because you can go out and spend that inheritance any day.

    Tbh if i had €120k in the bank and i wanted €30k i would not get a loan, i would just use the inheritance. The interest on a €30k loan is big enough so you will end up paying the bank a good bit more than €30 back.

    Would you not just use €30k of your inheritance and leave the remaining €90k in a deposit account earning some money. This way you are getting best value as you wont pay the bank back loads in interest and you still have loads for travelling.

    In short the bank wont give a loan over that period of time from my experience but someone may have better info than me here


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    #3
    BuffyBot
    Registered Users Posts: 24,924 ✭✭✭✭BuffyBot


    Indeed, I'd concur with much of the above. A personal loan of that magnitude would be hugely unlikely.

    Use your own resources, save a lot of interest repayments, and invest the remainder so that it gathers some interest during your trip.


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    #4
    amdublin
    Registered Users Posts: 20,653 ✭✭✭✭amdublin


    Initially I was going to just say an outright No. But then I saw your €120k.

    If they give you a loan they will want to put a "lock" on €30k of the inheritance ie. you simply will not be able to touch it until they get their money back.

    They are not going to do this for 20 years.....

    Why not ring your local bank and see what your options are....?


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    #5
    namloc1980
    Registered Users Posts: 18,244 ✭✭✭✭namloc1980


    Trapattoni wrote: »
    I want to take out a 30k loan to travel around the world (rather not explain what trip exactly but just know it costs 30k)

    Do you think a bank would lend me this money and allow me to pay it off over 20 or so years ?

    I have 120k Inheritance in my bank that I do not want to touch and use for a house at some point in next few years. Maybe they will allow me do this using the 120 as a gaurantee if i cant pay it off over the years??

    Thanks guys

    As mentioned above the best option by far is to just take the €30k from your inheritance in the Bank and then shop around for the best possible deal for your remaining €90k and get a good interest rate on it. There's little point in taking on a €30k loan and having to pay interest on it etc. while you have the money you need sitting in the Bank.


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    #6
    dotsman
    Registered Users Posts: 3,636 ✭✭✭dotsman


    Agree with all the sentiment above regarding duration etc. Typically 5-7 years is the max a bank will consider and even then, it's only under special circumstances.

    However, there is one far more important factor here that has not been discussed: Ability to Repay.

    No bank will ever lend money to someone who cannot prove an ability to repay. Do you have a job? If so, is that job guaranteed when you return? Unless you have guaranteed income (capable of making the repayments), you might as well forget it. In the past, when there was an abundance of jobs, a bank might have been lenient, making the assumption that you will have no hassle finding a job within a month of your return etc.

    No good lender should ever lend with the expectation that they will have to rely on the security.


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    #7
    Lawdie
    Registered Users Posts: 863 ✭✭✭Lawdie


    dotsman wrote: »
    However, there is one far more important factor here that has not been discussed: Ability to Repay.

    Three key words are ability, stability and durability in lending, then its all wrapped up in compliance.


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    #8
    romah
    Closed Accounts Posts: 150 ✭✭romah


    Why dont you borrow the money from yourself !!

    You should take the 30K from the inheritance BUT make sure that you repay the amount in FULL as if you were taking that money from a bank but at zero % interest .

    Eg. 30K over say 10 years means a repayment of 250 a month ...

    just make sure that you discipline yourself to pay back the money ..

    Who needs a bank !!!


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