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What is a loan body?

 

The financial literacy of the population is not very high, unfortunately. And, if the potential borrower is not a specially trained financier, understanding banking terms at first can be difficult. For example, if you want to take a loan from a bank or an instant loan from a microfinance organization, for example, a credit company, open a loan agreement, and there you will come across such concepts as a loan body, interest, commission, penalty, penalties, document costs, insurance payments.

A knowledgeable person understands what’s what, but to a simple layman who needs additional financing, it may not be clear what the loan body is, where it comes from and what other obligatory payments are made for a loan being issued.

What does a loan body mean?

What does a loan body mean?

So, what is included in the body of the loan in the loan program that you draw up at the bank or credit union? In fact, the body of the loan is that clear amount for which the loan agreement is drawn up, that is, if you take a microloan in the amount of 15 thousand dollars, then the body of such a quick loan is these 15 thousand dollars. This amount does not include interest on the loan, commissions, penalties and fines due to delay, expenses for paperwork on the loan, insurance. The body of the loan is a key parameter, according to which, in fact, all interest, commission, fines, penalty, insurance will be charged. Thus, we figured out how to calculate the body of the loan, and it turned out to be impossibly simple.

How does the size of the loan body change during the term of the loan agreement?

How does the size of the loan body change during the term of the loan agreement?

During the course of the credit program, the trustworthy borrower pays the loan body in installments and interest on it. How the size of the loan body changes over time depends, first of all, on the chosen form of payment. All over the world financial institutions offer two types of loan repayment schedule:

  • Differentiated: the loan body becomes smaller with each next payment exactly as much as is paid by the borrower.
  • Annuity, that is, equal parts. With this form of debt repayment, interest on the loan is initially paid, and already in the second half of the repayment period, the loan body begins to decrease.

When can I pay only the loan body without interest?

When can I pay only the loan body without interest?

The borrower can pay only by loan if:

  • There is an agreement on early repayment of the loan, which does not contradict the clauses of the loan agreement.
  • Payment only of the loan body without interest can be made in the grace period allotted to the lender.
  • The borrower who first applied to the MFI has the right to an interest-free loan, that is, in fact, it pays only the loan body. Turning to the credit company, you can take advantage of a special offer for those who first applied for a microloan, having received a loan without interest. And in the future, you will be able to take advantage of microcredits, according to which most of the payments will concern the body of the loan, and interest, commissions, document costs and insurance payments will be minimal.
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Consumer credit rates revised downwards

Over the past few years, the consumer credit market has undergone a huge transformation. At the root of this change is the new limitation of the ceiling of the interest rate which entered into force in 2016. With this law, the upper limit of the interest rate has gone from 15 to 10%. This is to prevent over-indebtedness. Since then, banks have all been entitled to ever lower credit. Discover the evolution of the market since 2015.

 

Lower and lower

credit loans

While only three banks had to cut their interest rate cap, they all opted for the lowest possible rate strategy. Prior to the entry into force of the limit, the minimum rates did not fall below 5.9%. Today, there is a real downward trend. In 2017, most banks granting consumer credit offered minimum rates of around 4.5%. The record low rate touched 3.9%. However, while the minimum rates are lower, the average rate sold touches higher points. Only 15% of loan applicants get rates between 4.5% and 6.9%. Today, there is a new decline. The average is currently between 6.9% and 8.9%.And more than half of consumers obtained a rate between 9% and 9.95% between July 2016 and the end of 2017, down by 3 points compared to the average before the new restriction but very close to the maximum limit imposed.

 

Where to compensate?

credit loans

The drastic drop in rates implies a rebalancing in other fields. The durations in months have been expanded in recent years. Previously, obtaining a loan spread over 120 months, for example, was complicated. Today, this type of duration is increasingly allowed in practice, generating more interests. 

The same goes for the amounts. The limits of 100,000 or 250,000 USD are becoming less and less rare, following the example of Cembra, which went from a range of amounts between 500 and 80,000 USD in 2015 to a fork from 1,000 to 250,000 USD.

 

Less over-indebtedness

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For the consumer, these market transformations do not translate into lower costs, but rather into lower risks, since if the rates are lower, the repayment periods will tend to be longer, which implies a greater number of months. However, with lower monthly payments, the debt risk is less. The determination of customers’ risks and earnings is also facilitated by the wider range of amounts. Other laws established in 2016 help prevent over-indebtedness. Aggressive advertisements are no longer authorized and the term for a right of withdrawal has doubled from 7 to 14 days. Thanks to responsible credit, brokers and bankers are now also required to take risks into account in the event of financial contingencies.

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Loans for Negatives Online

Are you thinking of applying for personal loan for negative, but you don’t know what to do? Do you think that nobody will trust you? Did you try to apply for the financial amount you needed from a bank and he closed the door without thinking twice? Do not you worry anymore! You’re in the right place.

However, if you want to know more about restricted loans, stay tuned! We will provide the best guide with maximum details, so that you have no doubts.

How to use microcredit for negative?

How to use microcredit for negative?

Quick micro loans for negatives can be used in whatever you need most. For example, if you have a breakdown at home, in the car or in the garage; if you need to pay for private lessons or summer camp for children; whether you should pay overdue bills or even if you want to leave the list of defaulters.

Applying for a loan for negative online will be gone with your worries in a snap!

Requirements for applying for fast to negative loan

Requirements for applying for fast to negative loan

The truth is that the requirements for applying for loans regardless of being in defaulters list are very few and do not vary in any way if you do not have a payroll or guarantor. In our company, we try to provide the best facilities for our customers, so our conditions are three, unique and basic, so that most people can apply for a loan with a name restriction. These are:

  • You are of legal age, that is, you are 18 years or older.
  • Have a bank account, preferably in the country.
  • He has a recurring income, which can process a grant, a scholarship, a contract.

With these three conditions, only with them, you can have the money you need as quickly as possible. Don’t think about it anymore and consult our advisors now! We will respond as soon as possible.

Loans for negative with the best conditions

Loans for negative with the best conditions

By applying for credit, you have at your disposal the best credit and credit company on the market, as we said before. In addition, we provide all payment facilities and have a very intuitive platform so that no one has difficulties in executing the procedures.

We go step by step so that you know how to apply for credits without worrying about name in the list. Thus, in detail, you will discover what you must do at each moment. Of course, if you have any questions please contact our technical service, you will be happy to respond at any time, 365 days a year.

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How and where do you make a free credit buy-back simulation?

 

If you are viewing this article, it is probably because you have difficulty making ends meet and you have several credits outstanding.

In this situation, buying back credit or loan consolidation is often the right solution. However, you should know that this operation generates additional costs.

What are the disadvantages of buying credit?

What are the disadvantages of buying credit?

  • The principle of this operation is to extend the repayment period to reduce the amount of the monthly payments. And the fact of extending the term inevitably leads to an overall increase in the amount of interest due.
  • In addition, certain organizations will charge you administrative fees, which can further increase the cost.

It is possible to reduce the cost of a loan repurchase:

It is possible to reduce the cost of a loan repurchase:

It must be understood that the repurchase of credit is a juicy operation for the banks and credit companies, the proof: They all started. Loan consolidation offers are therefore very numerous.

Therefore: This is the top you need to play to get the best possible credit buyout. Make the competition work! By carrying out online loan buyback simulations.

How to do simulations?

How to do simulations?

  1. Beforehand: Consolidate all your credit documents, in particular the maturities of the various loans that you wish to integrate into the consolidation operation. Because at each simulation, you will be asked the amount of the sums remaining to be paid (capital remaining due).
  2. Connect successively on several sites of credit companies, on each of them, access the simulator. And fill out the questionnaire.
  3. Unlike a consumer loan, a loan repurchase is a fairly complex operation, this is why the responses to your simulations will not be immediate, they will generally be sent to you by email a few days later.
  4. When you have all the quotes in hand, compare the proposals. And select the best one.

Select the best proposition: Instructions for use

Select the best proposition: Instructions for use

  • To find the best buyout among the different responses, do not just look at the interest rate, it is certainly an important element but it is not the only one. Also keep an eye on the amount of the administrative fees which can considerably increase the amount of the operation.
  • In order not to be mistaken, compare the APR of each simulation, in fact the APR includes in its calculation various costs, including the administrative costs.
  • We provide you with a comparator above, allowing you to obtain several responses in a single request.