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What to look for when taking a cash loan?

By following a few simple rules, you’ll be able to find a quick and cheap cash loan. You don’t have to be an expert in finance to choose the loan that best suits your needs. A critique at http://www.robobeasts.com/consolidate-payday-loans-check-out-consolidation-loans-to-pay-off-payday-loans/

All you have to do is remember to pay attention to the following aspects and learn everything you need to know about cash loans.

Online cash loan – how to find the cheapest offer?

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The first step you should take is to go to your bank or check its offer online. If you are a regular customer of the bank, you may find that you get better conditions than someone on the street.

At first glance, it probably won’t be a big difference, but let’s assume that you can negotiate a rate reduction from 15% to 13%.

Then, over a 3-year scale, for a loan of USD 25,000 with a 5% commission included in the installment, you will save as much as USD 918. This is really a significant amount, so don’t be afraid to negotiate. Cash credit without certificates is very popular today, which will save you a lot of time on completing documents.

In addition, online cash credit is currently offered by most banks in Poland. When you apply for a loan online, you can check and analyze everything from your sofa.

Cheapest cash loan – how much can it cost?

Cheapest cash loan - how much can it cost?

The lowest loan amount is USD 500. For people with high incomes, it is possible to take out a loan of up to USD 100,000, e.g. at Good Finance or Cooperative Bank. If you want to apply for a cash loan at GFIC, you can apply for up to USD 120,000. Consider how much cash you need. And never take more than the amount you really need.

Cash loans – how many installments?

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It should be remembered that the higher the loan, the higher the interest. The Agree Bank loan for USD 100,000 for 60 months (with an open product agreement with this bank) is USD 166,860 to be repaid. So before you decide on a loan of this amount, make sure that you really need so much and – most importantly – whether you can repay such a cash loan.

Cash loan – additional costs of cash loan

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Remember that the cost of your loan will include a commission and compulsory insurance. Look carefully at the offers, because while compulsory insurance for certain amounts is unlikely to apply, you’ll almost always come across a commission.

The commission is treated in two ways – it can be deducted from the loan (i.e. instead of e.g. USD 10,000 you have applied for, it will affect your account USD 9,500 – with a 5% commission) or included in the amount credited (you will receive USD 10,500, but the whole will be subject to interest and will be repaid in installments).

Always carefully check all the entries in the contract before you sign it. This will allow you to avoid incurring additional costs and nothing will surprise you.

Cash loans – promotional offers

Cash loans - promotional offers

Promotions are not always associated with lower costs for the borrower. You should pay attention to the requirements that the bank places for a customer who wants to take advantage of such an opportunity. It is not uncommon for you to be required to take out insurance that can cover the cost of credit reduced in the promotion.

Cash loans without your spouse’s consent

You can take some loans even without your spouse’s consent. Only one of the spouses (borrower) repays the loan.

Of course, if the borrower defaults on the loan, the claim will be recovered sequentially from his personal rights (including pre-marriage and acquired through inheritance, enrollment or donation), from the borrower’s remuneration or copyright and other rights of the creator.

Liability may be incurred by a spouse in the case of a jointly run business activity where the spouse took a loan for its development.

Cash loans – a ranking of cash loans

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The cheapest cash loan is certainly the dream of every borrower. The ranking of cash loans that you can find on our website can be helpful in choosing the best product.

Where to get a start-up loan?

It is no secret that companies making their first steps on the market have serious problems with obtaining financing. A lot of companies fail in the first 12 months. It is no wonder that for banks they are not very credible as borrowers.

However, it is worth knowing that having appropriate seniority is not a hard criterion for granting credit in many banks. Some institutions have prepared a special financing offer for start-ups. In which banks can a beginner entrepreneur with less than a year of experience seek financial support?

The loan offer for companies that have just registered their activities

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Is theoretically not scarce. In practice, however, for a loan, especially exceeding 10-20 thousand. USD, it can be difficult. The more it is worth knowing where a start-up company can seek financial support.

Good Finance Bank is one of the banks where you can apply for a loan from day one. He has prepared a special offer for start-ups Loan for start + One year without ZUS, under which you can receive up to 100,000 USD without collateral on own assets, thanks to government support in the form of guarantees.

If a novice entrepreneur has the option of securing a loan with a mortgage on real estate, he will be able to borrow up to 350,000 USD Additionally, the offer is made more attractive by the fact that for the first 12 months of the loan period the bank will pay the entrepreneur a bonus of USD 400 per month (this is the amount that almost covers the monthly ZUS contributions of a novice entrepreneur, hence the wording “Year without ZUS” in the offer name).

However, to take advantage of this promotion, you must meet additional conditions, i.e. set up a company account at Good Finance Bank and pay ZUS premiums on time (!), Conclude an accounting contract with Tax Care, and repay loan installments on time. The minimum loan amount entitling to participate in the promotion is 50 thousand. USD.

Another Good Finance bank available for newly established companies is working capital loan, which can be used to purchase means for production or commercial goods. This loan is available without additional collateral. To obtain more attractive conditions, i.e. lower interest rates, it is worth trying to obtain collateral, e.g. in the form of movable property, real estate or assignment from the contract.

A loan for the company after a few months

A loan for the company after a few months

A working capital loan in the credit account guaranteed by the European Investment Fund at Bank Good Credit SA allows you to borrow up to USD 20,000 USD to the company that issued at least one invoice or one invoice paid by the contractor. Funds from the loan can be used for current purposes, i.e. purchase of commercial goods, production means etc.

The loan may be granted thanks to a free EIF guarantee, constituting security up to 50% of the loan value together with interest.

With a loan up to 10,000 USD, sufficient collateral is the EIF guarantee and a declaration of submission to enforcement and a power of attorney to use a bank account, with a higher amount additional security is necessary.

The internship does not count, the plan counts

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Some banks have prepared a special loan offer for start-ups, often available only thanks to governmental or EU support. What about the standard credit offer for companies? When can a young company count on a positive consideration of its application?

Some banks set the limit on the minimum company seniority (usually 12 months, sometimes 18 or even 24 months) from which credit products are available. For some institutions, however, the business plan, collateral and also credit history of the business owner are more important than the internship.

In a situation where the company has neither documented income for a fairly long period nor credit history, the bank may scan the owner. If he took loans from banks in the past and repaid them on time, the chances of getting a loan for a company increase.

What is bridging insurance? – Repayment of Loans

A special type of financial liability is a mortgage, in this case, additional fees may arise even more. They include, among others bridging insurance. This is often overlooked credit thread, which is of great importance. What is bridging insurance and who should it protect?

There is no need to buy insurance for a cash loan. However, this issue looks completely different when we reach for a mortgage.

What is bridge insurance for mortgage loans?

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Few people have come across the concept of bridging insurance. It is borrowers who decide to take out a loan to buy real estate. Then, they often reach for a mortgage calculator. It is also worth knowing that bridging insurance has a real impact on the amount of credit that a borrower can apply for.

What exactly is it and what exactly is bridging insurance? Each bank that grants mortgage customers must be properly insured against insolvency. Such security is an entry in the land and mortgage register.

Before it is concluded, however, usually a few weeks pass, and the bank is obliged to withdraw cash immediately after signing the loan agreement. To avoid a situation in which it may turn out to be lossy, bridging loan insurance was introduced until an entry into the mortgage was obtained.

This is a kind of guarantee of compensation for any loss of rights to the mortgage that may occur if the consumer fails to repay the loan. Therefore, bridging mortgage insurance is to protect the bank’s interests.

Is bridging insurance compulsory?

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A loan with insurance is almost a river topic. However, while loan insurance is in most cases non-compulsory, bridging insurance is governed by slightly different laws.

Bridging insurance is obligatory in the vast majority of cases, so it cannot be avoided. Securing against the borrower’s insolvency is a priority for the bank.

However, you do not have to worry about it because it is temporary insurance. What does this mean in practice? It applies until the entry in the land and mortgage register has been established.

When does the customer sign the bridging insurance?

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The customer signs bridging insurance with the loan agreement. The bank secures the mortgage by increasing the interest rate. It is this additional cost that is added to the contract as bridge insurance.

When the entry to the mortgage appears, the interest rate is reduced by the rate of this insurance. If it happens that, despite making an entry to the mortgage, an additional fee will still be charged, the borrower may apply for a refund of overpaid bridge insurance.

How much is bridging insurance?

Bridging insurance takes the form of an increased margin. However, it is difficult to talk about its fixed amount, because each bank sets it individually. In most cases, it ranges from 1% to a maximum of 2%.

In some cases, banks replace the margin with a one-off payment, the amount of which is a designated percentage of the loan amount. Then it is this amount that is the collateral for the bank until it is registered in the mortgage.

How to calculate bridging insurance?

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To calculate the amount of bridge insurance, it is worth using a special loan calculator. You can also do it yourself.

Let’s assume that the loan amount requested by the borrower is 250,000 USD. Its interest rate corresponds to the market average for loans in USD, i.e. 5.82%. Therefore, the installment of the loan taken for a period of 25 years amounts to USD 1,583.36. If the bank raises the margin by 1% for bridging insurance, then the installment increases to USD 1,738.35.

If the margin increased by 2%, the installment equals USD 1,899.83. The installment increased by bridge insurance is, therefore, higher by USD 155 and USD 316 respectively.

Assuming that the establishment of collateral will take three months, the cost of the loan would be higher by USD 465 for bridging insurance in the amount of 1% and by USD 948 if the insurance increases the interest rate by 2%.

When is the bridging insurance paid?

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In the secondary market, the borrower pays the cost of bridging insurance from the moment the loan is disbursed. The situation is slightly different when the consumer decides to buy real estate from the primary market.

Then the insurance should be paid from the moment of paying out the first tranche of the loan.

When should I pay for bridging insurance?

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The bank has the right to collect bridging insurance only until an entry in the land and mortgage register has been established . Until when is the bridging insurance paid? Up to the same time.

Collecting fees for bridging insurance after this day is against the law. Therefore, bridging insurance lasts from the payment of the loan until the date of entry of the property in the land and mortgage register.

Are there banks where bridging insurance is not required?

It may happen that the bank will not require bridge borrower insurance. In this situation, it is replaced by a one-time fee, which we have already mentioned above. However, this happens relatively rarely.

Does the bank return bridge insurance?

If the bank charged a fee related to bridging insurance after entering the property in the land and mortgage register, it is obliged to return it.

It should be borne in mind, however, that customer claims against banks for the return of bridge insurance expire after 10 years from the date of payment.

How to regain bridge insurance? The consumer must apply to the bank for a refund of the amounts due. If the bridging insurance is not returned, the case should be referred to court.

Loan types: what types of consumer credit are there?

What forms of consumer credit are there?

What forms of consumer credit are there?

If you want to borrow money, you can choose from a very large number of loan types. Think of a mortgage if you want to buy a house or a car loan if you want to buy a car. This site specifically concerns consumer loans that you as a consumer can take out from a lender. 

What is a consumer loan?

What is a consumer loan?

Loans come in many variants, but in the end it all comes down to: you borrow money, you pay interest on it and you have to repay (periodically) immediately or at a later time. A consumer loan is a loan in which the money is used for consumer spending. Think of a loan for buying a car or giving a wedding or a loan that you take out to get some more spending space. Consumer loans come in two basic forms: the personal loan and the revolving credit.

Differences between revolving credit and personal loan

Differences between revolving credit and personal loan

The main differences between a revolving credit and a personal loan are the flexibility and type of interest. With a revolving credit you can withdraw repaid amounts up to the original loan amount. That is not possible with a personal loan. If you want to borrow again with a personal loan, you must apply for a new loan. This makes the revolving credit more flexible than the personal loan.

Another important difference is the interest. The interest is variable with a revolving credit. In theory, this can change daily. With a personal loan you have a fixed interest for the agreed term. So with a personal loan you know exactly where you stand.

Types of revolving credit

Types of revolving credit

The most well-known revolving credit option has already been described above, but also a credit card and buying on credit from a store is usually a form of revolving credit. In these forms, too, there is often a credit limit where you can withdraw already repaid amounts.

Types of personal loan

Types of personal loan

Personal loans include loans that you pay off monthly and where you know exactly when the loan has ended. This form is often used for the purchase of products whose value decreases quite quickly. Think of a car. A personal loan is therefore also referred to as a car loan. But a personal loan can also be useful for the purchase of goods such as a kitchen or washing machine or for financing a holiday. As soon as the car, kitchen or washing machine is due for replacement, you are off the loan. A pleasant thought.

You can also use a personal loan to finance renovations to your own home. The characteristics of the PL meet the requirements for the mortgage interest deduction, making the interest you pay deductible for income tax just as much as that of a mortgage.

What does a loan cost? Calculate monthly amount for your loan.

Indication of your monthly amount

Indication of your monthly amount

The monthly amount that we can calculate for you in the above calculation is an approximation of the actual monthly burden. Due to rounding differences, this amount may differ slightly from the monthly charge that a lender calculates. Of course, in the end, the calculation of the bank is leading in what you will actually pay per month.

Monthly charge revolving credit

Monthly charge revolving credit

You cannot choose a loan form for the calculation: the monthly charge for a personal loan is calculated here. The amount you pay per month with a revolving credit does not depend on interest and term – it is simply a percentage (1%, 1.5% or 2%) of the agreed credit limit. If you have a limit of $ 10,000 and a monthly charge of 2%, you pay $ 200 per month.

Monthly charge = interest + repayment

The monthly charge of a loan consists of interest and repayment, both with a personal loan and with a revolving credit. The distribution of the monthly charge over interest and repayment works differently for these two loan types.

Interest and repayment on a personal loan

A personal loan is a fixed agreement: all data is recorded when it is taken out. The interest rate is fixed, the monthly amount and therefore also the term. Part of the interest is always taken from the fixed monthly amount (calculated on the outstanding debt) and the rest is repaid on the loan. The monthly amount is calculated exactly so that you have repaid the entire loan at the end of the term.

Interest and repayment with revolving credit

Revolving credit is much more flexible: the credit limit is fixed there and the monthly amount is no more. The monthly amount is a percentage of the agreed limit. After collecting the monthly amount, it is first calculated how much interest (the percentage is variable) you owe on the outstanding debt (which can vary because you can repay and withdraw amounts at your own discretion).

What remains of the monthly amount is used for repayment. Because you do not know in advance how the interest rate will develop and you do not know how it will go with withdrawals and repayments, you cannot know in advance how long you will take to repay the revolving credit.

Higher monthly amount = ready faster and lower costs

Higher monthly amount = ready faster and lower costs

Can you miss more than the monthly amount we calculated for you above? Then look at what comes out if you choose a shorter term. Then the monthly amount increases, but you get rid of your loan faster. This ensures that you ultimately pay less in total: the total costs are lower. The faster you pay off on your loan, the less interest you have to pay.

Merging loans: borrowing cheaper by combining.

Borrow cheaper: combine small expensive loans

Do you already have one or more (small) loans? Then there is a great chance that you can save on your monthly payments. Even if you want to take out an extra loan, this is a good time to combine all your loans into 1 larger loan and thus save on your monthly burden.

The amount of the interest is partly determined by the amount of the loan. Borrowing a low amount almost always entails a higher interest rate than if you borrow a higher amount. If you have several small loans, you can almost always save a lot by combining them into 1 higher loan. Through our comparison you can find the cheapest loans. First add up all the small loans and find the best loan for that amount (plus any extra money needed).

Small, expensive loans

Small, expensive loans

A washing machine on commutation, an outstanding amount with the credit card company, an overdraft on the account and yet another loan. It often occurs in practice. For all these small loans you often pay the main price in interest. The interest that a mail order company charges for paying a washing machine in monthly installments is often around 15%. Credit card companies also charge such interest rates. Overdraft costs on average around 11% interest.

An example.

Loan Amount Interest Per year
Washing machine and tumble dryer on installment $ 1000 15% $ 150
Average outstanding credit card balance $ 2500 15% $ 375
Overdraft payment account $ 1500 11% $ 165
Revolving credit* $ 5000 9.9% $ 495
    Total: $ 1185
New revolving credit ** $ 10,000 5.6% $ 560
    Savings: $ 625

 

A higher, but cheaper loan

A higher, but cheaper loan

Most banks charge a lower interest rate for higher loans. They do this, among other things, because, for example, the administration and personnel costs that are included in the interest are just as high for a small loan as for a high loan. The example above shows that the combination of loans can yield hundreds of euros per year. You can use this advantage to repay the loan (extra), so that you can get rid of the loan faster.

Can you always merge loans?

Can you always merge loans?

You can almost always pay off all aforementioned loans, a repayment arrangement, credit card or overdraft. This also applies to a revolving credit. In some cases you pay a small fine for early repayment of a personal loan. However, calculations show that it is usually still worthwhile to aggregate or transfer the loans.

What age limit to take out a loan?

Legally, there is no age limit for taking out a bank loan. However, the theory is far from reality since once the borrower has reached a certain age, the banks become reluctant to grant him credits. They do so only under certain conditions which do not always benefit policyholders.

Chilly banks face senior borrowers

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Unfortunately, not all customers in banking establishments are treated equally. In fact, they are much more flexible towards those in their thirties or forties who are still professionally active rather than with retirees in their sixties whose incomes have fallen. Income precisely constitutes an elementary detail in access to credit.

But not only since health also plays a big role. By engaging with a senior, the chances of non-reimbursement are high, especially if there is a lot of medical history.

However, not all is lost. The favorable figures on the extension of life expectancy are making a difference. Banks must readjust their policy on finance for seniors and be more conciliatory towards them.

Expensive insurance

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So, today, customers under the age of 65 can aspire to get credit. Still it must not be long lasting. Difficult indeed for a person of such an age to repay monthly payments spanning very many years, how much even he has very solid health, without heavy medical history.

Health has a huge impact on the cost of credit. It may be that the borrower is penalized by insurers through an insurance contract which is very expensive. This is even more true for people who are no longer in shape. Just for comparison, if insurance is 0.20 to 0.30% of the total cost of credit for young workers, it is almost double for older borrowers (see here). People over 70 even have to pay up to 1.75%. Financial institutions apply this additional cost because the risk of death before final repayment is high.

How to get a loan when you are a senior?

 How to get a loan when you are a senior?

Seniors can use some of their strengths to attract banks and access a loan. Personal contribution for example. The latter is required from financial organizations. But young people are sometimes unable to provide this financial contribution. Seniors, on the other hand, have had plenty of time to save and can thus pay for their personal contribution.

Personal collateral is another option to consider. Already owner, you want to acquire a second home? Use your first asset as collateral. This will reassure the borrower at the time of subscription. However, if you fail to repay your loan, you risk losing your home. Weigh the pros and cons before you start.

And if despite all these tips and tricks, the bank has closed its doors for you. Try to ask for the senior contracts that have been specially set up for people 80 and over.