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Loans and borrowings

We have prepared complete information for you and answered all questions regarding loans (consumer loans). Everything in one place! Updated for 2018. Detailed and simply explained. Find out how to choose the most advantageous loan and not lose your money unnecessarily, due to unfavorable interest rates.

Loans and consumer loans are one of the most common loan products on offer today. There are a huge number of lenders and consumer credit providers on the market, so there is really a lot to choose from.

Choosing the wrong loan or a loan from an unreliable provider can cost you a really large amount of money and psychological power in the future.

Read this comprehensive article and learn how to navigate the offers of banking and non-banking companies so that you can make the right decision when choosing a loan or consumer loan.

Loan vs consumer credit

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In the market for financial products, various terms are used that can be confusing to people. In fact, the terms “loan” and “consumer credit” have virtually the same meaning. They are used to denote credit products that are provided by banking or non-banking companies for personal purposes, mostly for the purchase of a car, household equipment, holidays or practically anything else.

What is a loan?

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A loan is a type of loan that is provided to ordinary people for personal (non-business) purposes. They can use the borrowed money for practically anything. Loans are provided by both banks and non-banking companies.

With a non-purpose loan, you can use the money for practically anything – even a holiday.

What is a consumer loan?

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A consumer loan is actually the same as a loan. These two terms refer to the same product in which a banking or non-banking company lends money to an individual for private purposes, which need not be documented in any way.

Is there a difference between a consumer loan and a consumer loan?

The term “consumer credit” is not used very often in Slovakia. It is a Czech term that also appears here and there in Slovak texts. If you encounter it, know that consumer credit is the same as consumer credit.

How does the loan work?

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The loan or consumer loan is concluded by signing a written contract, which contains all the necessary information, but mainly the following:

  • identification of the contracting parties, ie the creditor (lender) and the debtor,
  • amount of money borrowed,
  • the method and duration of repayment, including the number of individual installments, the interest rate and the RPMN (annual percentage rate of charge),
  • the rights and obligations of the individual contracting parties,
  • possibly also insurance or reinsurance to secure the loan.

Cancel personal loan.

In the case of a personal loan, the two sides can cancel, ie the borrower and the bank can cancel a personal loan. As a customer, you can terminate the loan half a year after the loan has been paid out, with the normal notice period of three months. This would also eliminate the so-called prepayment decision.

What should you watch out for if you want to cancel a personal loan?

What should you watch out for if you want to cancel a personal loan?

But if the borrower canceled the personal loan, the processing fee would also be forfeited, so that the bank no longer repays it. The opposite is the case, because if you cancel your personal loan as a customer, you usually have to pay additional fees for processing the cancellation. However, there has recently been a new guideline that states that the borrower can generally terminate at any time and without notice.

What about bank termination?

What about bank termination?

If the bank wants to cancel a personal loan, it is more problematic. Because at the same time, various conditions must be met that the bank may terminate at all: the borrower must be in arrears or in arrears with two successive loan installments, and the arrears in the installments must be at least five percent over a period of three years or ten percent with a duration of up to three years, the bank must also have sent a third reminder to the customer, in which a termination was threatened, the consequences of the termination were made known, and there must also be a period of two weeks then and only then can a bank terminate the loan on its part.

What is legally a loan termination?

What is legally a loan termination?

A loan termination is a unilateral declaration of intent by the borrower or by the lender that they want to end the loan contract. Even if there is no right of termination, this contract can be canceled if both parties agree. The legal situation at the time of the termination always applies to the termination. As soon as the loan is canceled, the borrower is obliged to repay the remaining debt immediately. He can pay it from his own funds or by repaying a loan from another bank.

Credit for young people.

Many adolescents and young people first dream of getting a driving license for a moped from the age of 16 and one or two years later of having their own car. In addition to the familiar peer pressure and being impressed by their own motorized, mobile pedestal, young people also want to achieve the highest possible standard of living through, for example, a smartphone and their own apartment.

The follow-up costs and hidden costs

The follow-up costs and hidden costs

The complete package, however, should only be completely independent of the parents. The follow-up costs and the hidden costs are mostly overlooked by young people in their adventurous calculations and plunge into a financial crisis before the age of 18 begins.

Before the age of 20, the insolvency administrator, the debt collector of a debt collection agency, the bailiffs and the landlord, who was angry about the lack of rent, could be at the door! For these reasons, it is practically impossible to get a loan before the age of 18. Even after the age of 18, it is difficult for young people to obtain a loan.

Because just because you are 18 years old does not mean that the necessary maturity and sense of meaning for a loan is usually available. In addition, there is the fact that a loan is not yet affordable for young people in this phase of life because they are still at school or have just started an apprenticeship.

The trap of a loan for young people

The trap of a loan for young people

It often happens that after successfully completing an apprenticeship, unemployment occurs because the company cannot keep the apprentice for financial reasons. The earnings are, if only brief, and the monthly installments for the repayment of the loan remain. So before taking out a loan for young people, they should think about how the coming months and years will look in terms of professional income and whether this loan can be repaid in a realistic time.

Before you know it, the debt trap has snapped. The consequence of this is a negative Schufa entry and considerable additional costs. The repayment of the loan is the smallest problem! Approving another loan in the future can be very difficult due to a negative Schufa entry.

The offer of the banks

The offer of the banks

Of course, the banks know about the striving for independence among young people and want to support them in the form of a loan. Therefore, the financial institutions offer a loan for young people with a long term and therefore with very low monthly installments. This keeps the financial burden very low. At the same time, the banks offer young people enormous flexibility.

For example, a loan can be redeemed prematurely or suspended for one or more months in the event of a financial shortage. A loan for young people always carries risks! For this reason, every young borrower is advised to voluntarily take out residual debt insurance. The loan amount increases to the disadvantage of the debtor, but in a financial emergency, for whatever reason, you are optimally secured.

Instant credit for Social Welfare recipients.

Everything in Germany is getting more and more expensive, starting with electricity, moving on to gasoline prices and ultimately rising rents. Unfortunately, wages do not increase proportionally to the rate of inflation in everyday life, so the demand for an instant loan for Social Welfare recipients is currently experiencing a huge boom.

More and more people find themselves in a financial dilemma that makes it impossible for them to meet their payment obligations. This can be for no fault of your own, but it can also be due to an obligation to consume, because ordering is easier than paying.

Mainly Social Welfare recipients, welfare recipients and the unemployed are among the needy for an instant loan for Social Welfare recipients. Unfortunately, the creditworthiness of this financially weak group of applicants is not exactly particularly creditworthy. The financial framework to get an instant loan for Social Welfare recipients is very limited and hardly enough to live on. It is therefore bad for the bank.

Is an instant loan helpful for Social Welfare recipients?

Is an instant loan helpful for Social Welfare recipients?

In most cases, the loan should improve the current quality of life, but this is more or less a fallacy, because the low income of these people should then also be used to pay off the immediate loan for Social Welfare recipients monthly.

This can only work if the borrower is absolutely certain that his financial situation will change in the foreseeable future. Otherwise, the debt spiral will only widen.

Can the applicant easily get an instant loan for Social Welfare recipients?

Can the applicant easily get an instant loan for Social Welfare recipients?

As the saying goes: “You can earn money even in times of need”. Here, the financial misery of the applicants is largely exploited shamelessly. Paper is patient. In the newspaper advertisements or on the Internet, the slogan: Instant loan for Social Welfare recipients is advertised very effectively.

Credit brokers who mainly offer the so-called Swiss loans reach a large number of applicants via the Internet who have been denied normal bank lending due to poor Credit Bureau information. In general it can be said here: State income does not count as income for lending. In principle, there is no instant credit for Social Welfare recipients.

This also includes the self-employed, trainees, students and social welfare recipients. Anyone who fills out such an application online only enriches the credit intermediaries who already receive a commission for the record of the application. A study has shown that out of 100 applicants, only one loan applicant is eligible for lending.

If it does work, it will be amounts between 3000 and a maximum of 5000 USD at absolutely overpriced interest, since the risk of default is very high. It is better to ask one of your friends about a loan.

7 simple steps to get a quick loan

You need to borrow money urgently and you don’t have time for lengthy processing, you can’t find a guarantor or as an entrepreneur you can’t present a purpose. You have got into unexpected problems and all you need is to get funds acutely. Your acquaintances have killed you, savings are not enough and time is a factor that does not wish you. The last person who can stand up for you in this situation is an entity that has the opportunity to provide a loan on the Internet and especially quickly .

If you have no experience with arranging a loan over the Internet, take a look at 8 simple steps that can help you obtain an online loan:

 

Sit down for the Internet

Sit down for the Internet

You ca n’t get a loan anywhere faster than on the Internet, so the time spent at the computer is a must. Thanks to the online system, you will avoid going to the branch and your time will not be saved even by an employee who has to take over the details of the amount and the repayment calendar before signing. Applying for a home loan is less stressful and faster anyway .

Choose the best company

You can do a small product survey, read references or search for company profile information. Knowledge about interest rates, the possible length of repayment, the necessary documents, the maximum amount of the loan will be beneficial and will help you decide which company you will trust.

 

Calculate the amount of the installment

Choose a loan

Use the online conversion calculator on the website of the specific company you decide to submit the request to. You can also come across a portal where it is missing, in which case you will encounter a rare exception. You don’t even have to look for calculators for a long time, almost all providers have it right at the beginning and after entering the page it will hit you straight in the eye. Enter the parameters of the borrowed amount, the appropriate repayment period and you will see the calculation of your monthly payment and the resulting amount of the total cost of the loan.

 

Choose a loan

Most companies have more loan programs ready for you, divided into those for citizens and business or trade. Choose according to the group you belong to, entrepreneurs have different interest rates and have to submit different documents than ordinary citizens. In this step, you already know exactly what type of product you are applying for and you have calculated the amount of the installment, so simply mark the product and move on.

 

Fill in the form

loan application

The application in the form of an online form contains data to fill in about you, name and address , contact, age and other personal information. Some providers may require an income, pension or parental allowance, they may also want to know where you are employed and something brief about your partner. Copy the copy of the identity card, the document verifying the address, any confirmation of receipt and other necessary documents and send it in an attachment so that the approval is not delayed due to administrative irregularities.

 

Confirm acceptance of the terms and conditions

Read the terms and conditions carefully before each binding submission of the application . It’s your money that you will repay, so don’t take it lightly. To be clear about the installments, deadlines, obligations and fees, give yourself peace of mind during this step and devote the necessary time to it. Make sure you understand the whole text. By submitting an application and agreeing to the terms, you have applied for a loan!

Your request is in the process of being approved, and you’ll receive your feedback in a few minutes.

 

Wait for the money

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Online loans are provided immediately . Wait a few minutes for the money to reach your bank account and then you can draw funds directly.

Private loans without payroll.

 

There are a good number of people who do not have a job and therefore no monthly payroll, obtaining private loans without payroll is the only option that those who wish to obtain a credit that allows them to face their economic problems can resort to.

What do private loans without payroll offer?

What do private loans without payroll offer?

The private loans without payroll that our private equity company offers gives our clients the possibility of obtaining that line of financing that will allow them to face their financial difficulties and be able to make ends meet.

Our private equity company provides these loans with a single condition, a guarantee that can be of any kind or nature. So it is possible to guarantee these particular loans without payroll as a real estate, a vehicle, art collections, etc., the only exclusion is jewelry; the number of possibilities for the client is very large and this allows that, despite the user being in a special situation in which they do not have that monthly payroll, they can also receive a private capital loan whose maximum amount will be 20% of the value that has the guarantee of this loan.

However, we offer an additional possibility for those clients who, even when unemployed, do not have real estate, but they do have their own vehicle. We refer to the loan for the car, in this specific case our professionals will assess the client’s vehicle and we will be able to provide him money for his car, we will give him an amount that will range between 30% or 40% of the value that the appraisal throws and this procedure It is done in the same way in the case of a motorcycle, a truck or a van.

What are the advantages of the private loans without payroll?

What are the advantages of the private loans without payroll?

These particular loans without payroll also have a series of additional advantages such as the speed of their procedures, the procedures are accelerated in such a way that it is possible to obtain the amount of money needed in a reduced time, often less than 72 hours.

This speed is very important for those users who, because they are in a difficult economic situation, need immediate liquidity and do not have time for further delays.

What are the characteristics of this loan?

What are the characteristics of this loan?

Furthermore, these credits can be paid in a very flexible and comfortable way for the client; in installments that can be monthly, quarterly, semi-annually, or annually. For us, it is essential that the client does not perceive this money as an added financial burden and can easily repay the interest payment.

We want to emphasize that real estate guarantees must meet a very important requirement and that it is none other than being free of all types of charges or mortgages. Fulfilling this essential aspect, the floors, houses, premises, etc. are valid. We do not accept plots or parcels since these properties are too linked to variations in their prices and therefore are not acceptable guarantees for these loans.

Another advantage of these credits is that we can grant them to people who are on delinquent lists, which is included in the Financial Credit Institutions, etc. it is not an inconvenience for us and we can provide money to all people in special situations.

Loan despite negative Credit Bureau and unemployment.

 

Everyday people are confronted with the fact that high expenditures and unplanned investments have to be made. In order to be able to quickly return to their usual standard of living and a minimum of liquidity, people are looking for financial support. As a rule, they contact the bank they trust and apply for a loan. This is often granted, but in some cases this is not the case: employees with very low income or irregular earnings have a much harder time lending.

If you have a part-time contract or a temporary job, if you are a pensioner, self-employed, unemployed or a Social Welfare recipient, the loan is usually rejected. In the event of indebtedness, negative Credit Bureau information is particularly problematic. In the following, the conditions for a loan that is allowed despite a negative Credit Bureau and unemployment are to be examined in more detail and the various ways of obtaining it are shown.

A bank with negative Credit Bureau and unemployment is not happy to be approved by banks

A bank with negative Credit Bureau and unemployment is not happy to be approved by banks

There are customer groups that are very risky for banks. This includes in particular indebted customers with negative Credit Bureau entry, low earners, unemployed and pensioners. In the event of a loan, the bank has an increased risk that it will not get the requested installments back within the specified time. If the customer is in arrears with payment in installments of their loan, this represents a loss for the bank.

In order to limit this risk from the outset, banks often do not allow loans to the customer groups mentioned. For unemployed people with a negative Credit Bureau entry, this is not a reason to give up: A loan, even despite a negative Credit Bureau and unemployment, is possible under certain conditions. All that is required is a guarantor who confirms that he will pay the installments due if the customer becomes insolvent. Those who have a relatively high and above all regular income can make themselves available to the customer as a guarantor.

In addition to the liquid guarantor, a high life insurance policy and a good and trusting relationship with the bank, which the customer should not have noticed so far, can have a positive effect on the granting of a loan. If the customer has already heeded the listed tips and has therefore not been successful, there is a second option: Private companies often offer a loan even if they have negative work and unemployment.

Private companies as contacts for a loan that is granted despite a negative Credit Bureau and unemployment

If the banks reject their loan application, they may find what they are looking for at one of the private credit companies, which can be found in large numbers and easily on the Internet. Among other things, they also offer a loan that is permitted despite the negative Credit Bureau and unemployment. Companies often advertise large amounts of credit available and offer it to all income groups.

This is particularly attractive for unemployed people who want a loan despite a negative Credit Bureau. However, you have to check the offers carefully before signing the contract. It often hides additional costs and disproportionately high interest rates, which are a major problem for people with low incomes. Interested parties can find out more about private loans online and get opinions from experts so as not to experience a nasty surprise.

Credit for a trip around the world.

The credit for a trip around the world is not a mundane vacation loan, but a loan amount that is in the four-digit range and will surely have to be repaid over many years. Since everything or almost everything is financed with the help of credit these days, it is no wonder that there are actually globetrotters who believe that they can finance their trip around the world with a credit.

The credit for a trip around the world is a no go

The credit for a trip around the world is a no go

Of course there are always reckless people and it is not without reason that there are such credit offers. But definitely the credit for a trip around the world is something that common sense forbids.

A world trip is only possible if it can be financed from savings or other reserves. A trip around the world is unnecessary, so it is pretty reckless to take out a loan for it.

So far, anyone who has had a relatively safe job and is exempted for their trip around the world, which cannot be taken on a normal vacation, must always count on being dispensable in their company and taking the risk that they will be with next wave of layoffs. How are the loan installments to be paid for a trip around the world?

A trip around the world is certainly the dream of many people who are drawn to the wider world, but you also have to be able to afford a trip around the world. If you take out a loan for this, you are going the wrong way and run the risk of not being able to pay the installments at some point after your trip around the world. It can also be assumed that a trip around the world will only be half as much fun if you have to keep thinking about how long you will have to pay for this “pleasure” in the future.

If you are planning a trip around the world, you don’t even book it that way – you should put money on the high edge for the long term and only fulfill this dream when it can be paid for. Certainly, many banks pay installment loans for free use, so you wouldn’t even be forced to state that you want the money for a trip around the world. But if the bank knew, it would be questioned what the job would look like after the trip around the world.

Credit for a trip around the world is pure recklessness

Credit for a trip around the world is pure recklessness

Who is in debt because of a trip around the world is absolutely reckless. If you now assume the worst case scenario that you will no longer have a job after your trip around the world and cannot pay your installments, then you still have private bankruptcy. Even if you survive the good behavior phase and receive the debt relief at the end of the bankruptcy procedure, the creditworthiness has not been available for years and all because you had to go on a trip around the world that you could not really afford.

It is increasingly a basic problem in our society that there are people who think they have everything and if their own money is not enough, life is financed with credit, so that in the end the creditors are left with bad credit and the decent borrowers, through the higher interest rates, are also contributing to the credit risk of consumers who do not see all of this so narrowly is not only a scandal but also very neglected.