A WOMAN Police Constable working in Personnel Wing planned to honeymoon in Europe, but the trip had to be forfeited for the wedding banquet, decoration of her new home and her forthcoming tax repayment. Because she really wanted to honeymoon in Europe, she considered taking out a personal loan when she learned that the monthly flat rate of loans from banks was only some 1 per cent - which she considered to be low and affordable.

When she discussed that plan with her finance, however, he maintained that the cost of the loan was not that low and refused the suggestion.

As a matter of fact, the cost of a loan cannot be valued only by the monthly flat rate. One has to consider the annualised percentage rate which is a generally accepted indicator of its cost. It is not simply equivalent to the multiplication of the monthly flat rate by 12.

There is a particular formula for calculating the annualised percentage rate which is fairly complicated. However, the following table will give you an idea of the relative values of monthly interest rates and annualised percentage rates. (It is presumed that the loan will be repaid by 12 instalments within a year).

The above annualised percentage rates do not include the service charge which is normally required by banks and financial institutions for personal loans. The service charge is largely equivalent to 1 per cent of the principal and received in name of "insurance", "fees for the right of repayment exemption upon death", and "interest advance", etc. Should this 1 per cent service charge be included, the annualised percentage rates will be generally increased by about 2 per cent.

Financial institutions also normally charge a higher interest rate than banks. The Staff Relations Group has recently made enquiries to several well-known financial institutions. These institutions charge a monthly interest rate of some 1 per cent to 2.3 per cent, which is equivalent to about 23 per cent to 59 per cent in terms of the annualised percentage rate.

Moreover, the interest rates are high after the recent financial turmoil. They may be even higher in the near future. As such, the cost of taking out loans from banks and financial institutions is in fact very high. It is an unwise move to rely on personal loans for satisfying your spending desires.

So don't be misled by apparently low monthly interest rates.

Should you require further information about interest rates, please call the Staff Relations Hotline on 2866-7519.

Making better use of communicating via the Internet THE Internal Communications Section of the Staff Relations Group is examining a wide variety of communication channels in the Force. Making use of the Internet to disseminate useful information within the Force is under consideration. In conducting the feasibility studies on this, we wish to know how many police officers are private users of the Internet and are interested in receiving messages from the Force through their Internet e-mail system. Those who are interested please call the Staff Relations Hotline and leave your UI number and e-mail address. Or you may forward any particulars to: patcplam@chevalier.net.

POLICE OFFICERS' CLUB Change Your POC Car Park Label Now!!! Change Your POC Car Park Label Now! Please be aware that POC 1998 car park labels are now available for collection. Please ensure that you bring a copy of your registration document or alternatively fax the document through to POC on 2838-9665. When collecting your label if you submitted only the copy on application, please show the reception staff your original registration document. The 1997 car park labels will expire on 1 February. Vehicles found displaying old labels after that date will be charged at the guest rate of $20 per hour. To avoid problems change you car park label now. The price of the car park label remains unchanged at $30 per vehicle. POC Opening Hours over Chinese New Year Tuesday 27 January closed 12pm onwards; Wednesday 28 January closed all day; Thursday 29 January open to fireworks ticket holders only from 5pm to 10:30pm; and on Friday 30 January open as usual from 7am. Fireworks Display Dinner on Evening of 29 January 98 This year a balloting system will be in place as opposed to the first-come first-served basis that was the norm in previous years. A date will shortly be announced for submitting applications for table bookings on this night. Revised POC Children's Play Group 1998 Schedules Mon from 2:30pm to 4:30pm; Tues from 10am to noon; Wed from 2:30pm to 4:30pm; Thurs from 10am to noon; and Fri from 10am to noon. Enquiries Lesley or Karen on 2549-3464. Who To Contact at POC For all catering-related bookings please contact Mandy Leung on 2891-4128, or fax 2838-8917. Venue and facility enquiries may be directed to the POC Reception on 2591-1911, or 2591-1930. Function Room bookings can be arranged by calling Kathy or Katherine on 2591-1912.

For enquiries call the AIU Hotline: 2832-1598, or Personnel Service Branch Headquarters: 2804-1111.

Leave Homes

FORCE holiday bungalow accommodation is available from January 7 - January 31, 1998 for Gazetted and Inspectorate officers and their civilian counterparts as follows: