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How
can it work for you?
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| WHAT
IS PREMIUM FINANCING? |
| Premium Financing is the
convenient way to pay for insurance.
When you finance your insurance premium,
you enter into a contract with NPG Finance Limited for a loan to pay your
insurance premium based on a suitable payment plan. You make a deposit
(this is usually a minimum of 25% of the total premium) and repay NPG
Finance Limited in instalments for the loan plus the interest in
accordance with the agreed payment plan. |
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| HOW
DOES PREMIUM FINANCING WORK? |
| We
have set out three examples of possible payment plans to
illustrate how premium financing can work for you. The
Total Annual Premium (or cost of the insurance for the
year) used in all three examples is $78,400.00 and is
inclusive of GCT, stamp duty and service charges. |
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| EXAMPLE
1 (Flat Charge) |
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| Total Annual Premium |
78,400.00 |
| Deposit
(more than the required 25%) |
30,000.00 |
| Loan Amount |
48,400.00 |
| Interest
Charge (flat charge) |
6,000.00 |
| Amount to be repaid |
54,400.00 |
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| Monthly Instalment |
$6,800.00 for eight (8)
months |
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| A flat interest
charge of $6,000.00 is applicable in this example as the loan amount is
below $50,000.00 (refer to the RATES SCHEDULE
for more information). If the deposit amount is more than the required 25%
of the Total Annual Premium, the amount of the monthly instalment will be
reduced. |
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| EXAMPLE
2 (Add-on Rate) |
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| Total Annual Premium |
78,400.00 |
| Deposit
(25% of premium) |
19,600.00 |
| Loan Amount |
58,800.00 |
| Interest
Charge (13% add-on rate) |
7,644.00 |
| Amount to be repaid |
66,444.00 |
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| Monthly Instalment |
$8,305.00 for eight (8)
months |
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| In this example
the deposit amount is 25% of the Total Annual Premium. The Add-on Rate is
applicable as the amount of the loan is over $50,000.00 (refer to the RATES
SCHEDULE for more information). |
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| EXAMPLE
3 (100% Financing) |
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| Total Annual Premium |
78,400.00 |
| Interest
Charge (13% add-on rate) |
10,192.00 |
| Amount to be repaid |
88,592.00 |
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| Monthly Instalment |
$11,074.00 for eight (8)
months |
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| In this example
the deposit is waived, therefore the full cost of the insurance is
financed. The Add-on Rate is applicable on the loan amount of $78,400.00. THE
FIRST INSTALMENT OF $11,074.00 IS DUE AND PAYABLE IMMEDIATELY. |
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BANNERS FOR MORE DETAILS >> |
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