[thechat] Hey Buddy, Can you Spare a Dime?

[Fred Jones]

My bank wants to offer me a loan, apparently because I am good
customer. They are offering me a pre-approved loan (no guarantors
required etc.) of $17,500. Terms are it's paid back over 60 months of
paying $381.25 per month for a total of $22,875, which is 130% of the
principal.

If I understand this correctly, this is far better than what I could
probably get elsewhere. Even without compounding anything, one can see
instantly that this is 0.5% per month. With compounding figured in, it
must be less than that. I currently pay 2% finance charges on some of
my credit card debts.

So unless I'm missing something, this is a good deal. Right?