Should I take bank loan for my COE?

Hello guys, I’ll have to renew my COE on this year July. I have the cash to pay the COE but I’ve been thinking if I should get a bank loan and pay them back by instalments? I’m currently investing monthly $1.5k each into Stashaway and Syfe. If I’m taking bank loan I’ll most likely be reducing my monthly investment amount.

Which is better? Pay fully in cash or bank loan?

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Zen Ang

14 Jul 2020

I will choose to pay fully in cash if i can instead of taking bank loan so that i dont have to pay the extra interest. But i think it depends on how comfortably can u live for each options.

my bro just renew his coe at https://www.motorist.sg/coe-renewal. if u still need to renew, can consider checking them out.

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Just Being Ernest

02 Apr 2020

Content Creator at www.youtube.com/c/JustBeingErnest

Personally I wont take bank loan to pay COE.

If you got cash to pay then better to use cash rather than incur debt with interest.

You can ask yourself if the returns you are getting from stashaway and syfe is able to cover the debt interest.

If the debt interest is like guaranteed 5% and the returns from your investment is non-guaranteed 3%, you are looking at making a loss of at least 2% if your investment dont do well.
I make videos about interesting stuff at youtube here

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