Archives April 2019

Differences between new mini-loans and traditional loans

Mini-credits are a form of financing that gains more followers every day. For this reason, it is very common to create new mini-credits to reach a larger market and help a larger variety of people. But all these minicréditos have, with respect to the traditional loans, several differences that it is important to know. Let’s see what they are.

Differences between new mini-loans and traditional loans

Differences between new mini-loans and traditional loans

Finding the right financing every day is easier. Microcredit lenders have greatly facilitated things for those people who need money urgently. But, in addition to the rapidity in the applications that is already known worldwide, what else do the mini-credits of traditional loans differ from?

Money entered faster

Money entered faster

From the moment you make the request for your microcredit until you have the money entered in your bank account can take less than 15 minutes. This has made many people prefer this system to that of traditional banks. In them, the wait from the moment you request the money, until you have it entered in your account can be days or even weeks.

No paperwork

No paperwork

The normal thing when you go to a bank office to apply for a loan is to request a large number of papers. Many documents are necessary for the entity to know that you are eligible for the loan application.

This does not work anymore in the case of new mini-credits, in which you can request your loan without more documents than the DNI or NIE and, perhaps, a proof of your bank account. It is not even 100% sure that you will request documents during the application, since not all companies do so.

Transparency without small letters

Transparency without small letters

How important it is not to have small letters when applying for a loan! When we talk about money transparency is vital. For this reason, the fast credit agents have decided to give all the information from the beginning. In this way, you, as a user, can choose if it is convenient for you to send this request or if, on the contrary, it is better for you to look for another lender.

Without links

Without links

If you have ever taken out a secure bank loan, you remember the bank’s call telling you that it is necessary to take out insurance or any other type of product so that the loan actually complies with the information you received. Other times, simply, they do not allow you to apply for the loan without hiring those services in advance. In most cases, the products that force you to hire do not serve you at all and only represent an expense. That is why fast lenders have eliminated them from their options.

Simpler requirements

Simpler requirements

In most of the banking entities it is necessary that you comply with a long list of requirements to qualify for the loan. In addition, on many occasions it is essential that you have a payroll, an endorsement and that you do not have any type of debt. People in FCI are usually rejected simply for that fact.

Mini-credit lenders are very clear about their priorities: offer you money easily and quickly. For that reason, they do not require so many requirements, neither is a guarantee nor fundamental that you have a payroll. Even people who are in FCI have a perfect microcredit for them.

Of course, almost all are advantages if we compare online mini-credits with traditional bank loans. Now that you know all the differences between microcredit, especially new mini-credits and bank loans, you already have everything you need to decide which of the two forms of financing is best for you.


Better mortgage loan insurance when borrowing from Metz

 

 

Insurance and Real Estate Loan – Find the best solution

Insurance and Real Estate Loan - Find the best solution

To become the owner of a residence in the city, it may be useful to take out a mortgage loan in order to have the necessary financing for this type of acquisition. A real estate loan committing you to the long term, your banker will ask you to take out loan insurance in order to secure the loan and will then propose his own group insurance contract, this being group insurance protecting the borrowers at medium risk.

You are free to refuse this proposal and can decide which insurer will guarantee your loan (delegation of insurance), thus giving you the possibility to opt for a guaranteed offer cheaper and more suitable than the standard formula proposed by the lender. By taking the time to choose your loan insurance, you will be able to make a substantial saving on the total cost of your home loan.

Call a broker 

phone loan

Using a broker will allow you to choose your offer of mortgage and/or loan insurance among the best offers on the market that it has previously negotiated.

Choose an insurance broker and loan

Choose an insurance broker and loan

You are certain to get the best credit insurance rates with a really low cost for your loan guarantee.

We advise you on choosing the best deal among all the loan guarantee offers of insurance companies.

Our credit insurance experts advise you on the steps up to the signing of the subscription with your bank.

The innovative service of “cheap loan insurance” offers simulations guaranteed home loan at the best rate.


Personal loan: how long for what amount?

Before subscribing to a personal loan, it is essential to calculate the monthly payments that will have to be made. This is the condition sine qua non for budgeting the repayment of the personal loan. Applying the appropriate calculation method makes it possible to know which amount to borrow according to the desired duration. The repayment of a personal loan involves taking into account one’s own credit possibilities.

How to calculate the monthly payments of a personal loan?

personal loan

To calculate the monthly payments (m) of a personal loan , several data are to be taken into account. The following simplified mathematical formula should be applied:
M (monthly payments) = c * t / (1 – 1 / (1 + t) ^ n)
* symbolizes multiplication and ^ power

Take the following example:

Borrowed capital (C): € 4,000
Annual rate (T): 3% (or 0.03), which is a monthly rate (t) that is equal to T / 12 (0.0025);
Duration of credit (power n or ^ n): 48 months
In this case, each monthly payment will be 89 €.

The repayment of a personal loan takes into account, for the calculation of the interest on the loan, the capital remaining due. This decreases over the months since each monthly payment consists of a portion of the interest and a fraction of the capital borrowed.

Use a credit calculator

 Use a credit calculator

The refractory to mental arithmetic or mathematical formulas have a reliable and quick solution to calculate the monthly payments depending on the duration of the desired personal loan and the amount borrowed. The borrower must be able to support until the last deadline the financial burden that the credit represents.

The online personal loan calculator takes into account the borrowed capital, the interest rate and the duration of the loan. It also takes into account the capital left over in order to provide the user with a result that is as accurate as possible.

Thus, it is possible to know what credit duration to choose according to the desired capital, and this in a few seconds. It is therefore fast to build different scenarios before finding the best ratio amount / duration that is.

Online banks generally have their own calculator available, which allows the consumer to compare what the banks are offering in terms of the amount to borrow against a term. Just specify:

  • The desired amount of credit;
  • The interest rate ;
  • The duration of the credit, generally between 12 and 60 months.

After validating his choice, the user can have a comparative of the cheapest personal loans of the market. It is then sufficient for him to opt for the solution that suits him best, that is to say for the one that is most suited to his ability to repay.


What is an Online Money Loan Application?

Today’s technological sophistication makes many human activities easier to do. Starting from booking vehicles, paying for various needs, until shopping can be done anywhere and anytime.

As long as there are smartphones or gadgets and connected to the internet, everything can be done easily. Talking about technological sophistication, this also has an effect on economic developments that are mostly carried out in the community, namely online loans.

Everyone must have been faced with a situation where they needed funds quickly or an emergency fund. Some people need it for urgent needs such as health costs, or paying off education funding. Honestly, if you are in this situation, there is nothing you can do except cash credit card withdrawals. Sometimes credit cards have problems such as small limits and can only be paid for certain needs. Another solution is to make an online loan that can provide cash loans.

What is an online loan?

What is an online loan?

You who do not know online loans, is an application made by a company or institution.

The purpose of making this application is to provide the need for borrowing funds in cash and can be disbursed or made at that time.

Nowadays there are many online loan providers that come with fairly easy terms. Generally you only need a photocopy of ID card and also proof of salary as one of the requirements for submitting online funds.

Even so the funds provided are also not playing games. Starting from hundreds of thousands to tens of millions of rupiah.

In addition, this online loan does not require collateral as you would borrow from a bank.

The growth of online fintech or loan services, has caused many mobile application providers to lend money online increasingly mushrooming.

This is also accompanied by the easier process of borrowing money, because it can be done through a smartphone application anytime and anywhere.

Online loan application registered with OJK

Online loan application registered with OJK

There are many online loan applications, but each of these applications has different regulations.

This of course affects the borrowing process where some applications do take up to 1 to 3 days to verify the file you provided.

After that your loan can be disbursed, but some of you will borrow money online because it requires a faster disbursement process.

What needs to be remembered, if you really want to make a loan in money online, you should first make sure that the company is registered with the FSA.


The home loan

With the first home loan, it is possible to obtain liquidity for the purchase of the first home. This is an alternative to the payable mortgage when the amount requested is low.

THE FIRST HOUSE LOAN

HOUSE LOAN

When the amount necessary to purchase a property is low – usually less than about 50,000 euros – the first home loan turns out to be a valid alternative to the mortgage loan which, for these amounts, is not paid by the banks (like the expenses investigation procedure would be too burdensome for the buyer with respect to the amount granted).
This type of loan is indicated for those looking for a property that is not of value or low cost, or for those who already have the majority of the amount necessary to purchase the property.
The preliminary investigation of a loan practice is definitely slim and fast, so this type of loan is particularly suitable for those who have a certain urgency to receive the money.

ANY WARRANTIES

No mortgage on the building is required as a guarantee. If on the one hand, this aspect makes it possible to streamline the preliminary investigation process, on the other the absence of the guarantee leads the lending financial institution to request a higher APR than the mortgage.

THE ELEMENTS OF THE CONTRACT

THE ELEMENTS OF THE CONTRACT

The law states that a first home loan contract must contain the following elements:

  • the interest rate charged;
  • any other price and condition applied, including the higher charges in the event of default;
  • the amount and methods of financing;
  • the number, amounts and expiry of the individual installments;
  • the annual percentage rate of charge (APR);
  • the detail of the analytical conditions according to which the APR can possibly be modified;
  • the amount and purpose of the charges that are excluded from the APR calculation;
  • any guarantees required;
  • any insurance coverage required and not included in the APR calculation.

EARLY EXTINCTION

EARLY EXTINCTION

The law guarantees the consumer the possibility of early repayment of the loan. If the consumer decides to choose this option, in addition to the repayment of the residual capital, he could pay a penalty that must not exceed, by law, 1% of the financed capital; the exact terms of the penalty are reported in the signed contractual conditions.

EVALUATION CRITERIA

EVALUATION CRITERIA

Below we illustrate in a schematic way some specific evaluation criteria of the first home loan.

  • Risk policies: each Institute applies its own risk policy in the assessment of requests, based on the statistical data it has (credit scoring). This data is the tool that allows the Institute to keep insolvencies below a certain level.
  • Income level: the acceptance of the requests is normally also subordinated to the evaluation of the income level of the applicant and to the relationship between the latter and the possible repayment installment.
  • Creditworthiness: the creditworthiness of the applicant is of great importance. It is important to emphasize that this evaluation has no “moral” meaning. The Institutes are limited to estimating the level of risk connected to each request, also on the basis of the indications transmitted by the Central Risks. If the credit history of the applicant has some “flaws” (delays in repayments of previous loans, unpaid debts, etc.) the probability of the request being accepted is obviously lower. In some of these cases a valid alternative is constituted by the Assignment of the fifth: this solution, offering the appropriate guarantees to the financing Institute, allows the adoption of more flexible evaluation criteria.

THE CONDITIONS

Home loans can be requested for both the main residence (first home) and the second home, and also for the purchase of a box. They are provided by financial institutions and banks. They do not require specific requirements, except for a certain income and a credit position of the applicant for the loan which confirms adequate financial reliability of the same.


Single parent loan

As a single parent, you face new challenges every day. You do not just have to look after the children, you also have to make sure that there is always enough money to be able to cope well with everyday life. But sometimes the money earned in the job is not enough to make a big investment. Additional money is needed, which usually comes from a loan.

Banks and single parents do not match

Banks and single parents do not match

Banks are not happy when a single parent wants to take out a loan. Mostly, the borrower’s financial position is cited as a reason that makes lending a single parent difficult to put into action. Because the income is usually just enough to provide the family reasonably. There is no help and no child support. This must not be included in the calculation for the loan, since it is, strictly speaking, social benefits that are not attachable. In addition, many single parents have only one part-time job or are completely dependent on payments from the state, which does not really make borrowing easier. So what to do if a loan is sought for single parents, but the own conditions are not sufficient?

Is the additional load necessary?

Is the additional load necessary?

Before you even plan to take out a loan, you should ask yourself if this is really necessary. A loan – even a loan for single parents – always represents an additional financial burden. For this reason, it should be carefully considered whether and to what extent a loan is necessary. In addition, the type of loan should be considered.

Consumer goods can be easily and conveniently financed through a consumer loan. Here it does not matter how high the income is or whether one is a single parent or not. Since a consumer loan is earmarked and the purchased goods count as collateral, this is the best alternative for a single parent loan.

However, if the money from the loan is freely available, it gets a bit more complicated. Because then a installment loan must be taken. And this will only be possible if you can meet all the requirements that banks have for lending.

The installment loan as a loan for single parents

The installment loan as a loan for single parents

In order to be able to take out a loan for a single parent as a installment loan, an income must be available which is above the attachment exemption amount. If the single parent does not have this, he must look for a co-applicant. At best, this is found within the family.

In addition, a very good private credit must exist, so that the creditworthiness can not be diminished by negative entries in the private credit. Here, too, the co-applicant can help in the event of an emergency if the actual borrower experiences problems in this regard.

Finally, the loan amount must fit the personal requirements. As a rule, banks recommend small and manageable loan amounts. This is the only way to avoid over-indebtedness and problems with repayment of a single parent loan are rare.

Where to record?

Where to record?

With good conditions, the loan for single parents can be taken anywhere. It is therefore important to check the many offers for their suitability. This works best with a comparison that can be made conveniently on the Internet. Usually it is the house banks or direct banks that offer the best deals. But even a short-term action at a bank can lead to a good loan offer. If you put a little time into the comparison, you may end up saving a lot of money. Because he will certainly find the offer that best suits the wishes and personal requirements.


Request for a Fast Personal Payday Loan

A personal payday loan is a loan whose use of funds is only for the borrower. This means that the money lent to the beneficiary can be used as it sees fit. It is a loan without justification, as opposed to the credit allocated. Applying for a traditional personal payday loan may take time. This is a rather procedural step and it can be disabling when you need to have funds quickly, to cover an unforeseen event for example.

Today, online credit is becoming increasingly attractive, precisely to overcome this problem of loan implementation time. When applying for credit online, it is not necessary to make a physical appointment with a banker. Indeed, a request for personal payday loan online is faster and simpler than a traditional loan application. This is one of the major strengths of online stores.

 

How to apply for a fast personal payday loan online?

How to apply for a fast personal loan online?

This type of request is very simple: Just complete an online form, on the site offering the personal payday loan you want to subscribe (we can never recommend enough to inform you well and choose this loan carefully before doing a request). On this form, you will be asked to indicate your family situation, your professional situation, and of course your financial situation. You will then need to indicate the criteria for the personal payday loan you are applying for: This mainly involves the amount you want to borrow and the length of time you will repay your loan.

Once these steps are completed, the credit institution with which you made your request will study your file. An answer of principle can be given to you in the day but this does not consist in any case a definitive answer and a formal agreement of your loan request. However, some requests for fast personal payday loans may be accepted 48 hours after the request.

It is the same for the payment of funds: Sometimes, on easy and quickly accepted files, the money can be made available within 48 hours.
As previously mentioned, requests for fast personal payday loans are ideal for dealing with potential emergencies or any constraint related to the duration of a loan.

However, these fast personal payday loans are absolutely not guaranteed. Yes, a refusal is just as possible for a quick loan as for a conventional loan. In fact, fast loans, because they are required to respond to a request in a tighter timeframe, will generally be a little more demanding.

Similarly, you will be advised to be particularly vigilant about your repayment capacity because the financial risks in case of inability to repay can be very high. Be sure you can assume your monthly payments without exception if you do not want to be forced to pay additional interest as a penalty.

 

Loans between individuals: A quick solution still little known

Loans between individuals: A quick solution still little known

Today, it is also possible to apply for a loan between individuals. This solution allows any borrower not to go through a bank. This is a solution considered mainly by people whose files are refused by credit institutions because of banking history. However, it is a loan solution accessible to all and particularly fast, precisely because there is no credit organization or bank in the loop.

A request for a fast personal payday loan between individuals is usually done online, via simple linking platforms or via more secure sites. The latter are more reassuring for lenders, they will be a little more demanding on the profiles of borrowers.

In any case, some of the quick personal payday loans that you apply for, you will be required to ensure your creditworthiness. While credit bureaus are required to carefully study borrowers’ profiles to ensure that borrowers will be able to repay their loans in full and on time, keep in mind that it is up to you to ensure your own ability to repay. This is all the more valid when it comes to a fast loan.

To help you, many tools are available online: Credit simulations / personal payday loan calculator, simulation of borrowing capacity, brokerage agency and brokers of all kinds, etc.

Note: It is not because you are in a hurry and you make a request for quick personal payday loan that you can not choose the most interesting credit: Feel free to go through a credit comparison to find the best offer fast personal payday loan before making your request. top


Short-term loan

Short-term loans are financing options that will generally be repaid in less than six months. Through the lender, you will get a number of funds that must be repaid (along with the applicable fees and interest) in several installments.

With regard to traditional loans, short-term loans are offered in smaller amounts, higher interest rates and shorter payment periods, and sometimes also require weekly payments.

How can a short-term loan help my business?

How can a short-term loan help my business?

As the name suggests, short-term loans are for businesses that need temporary capital. This can be caused by various things such as sudden unexpected costs or when cash flow gaps occur due to fluctuations in seasonal consumer demand. With higher interest costs, shorter payment periods and lower loan amounts, short-term loans are not a suitable choice for financing large-scale investments such as total renovation projects or long-term expansion activities.

Is a short-term loan right for my business?

Is a short-term loan right for my business?

The following are general criteria that can help assess whether a short-term loan is suitable for your business:

  • You need quick access to funding: Through alternative lenders, the loan application process is faster and more efficient — where the application process is done online, requires fewer documents, and you will find out the loan agreement within 24 hours and gain access to funding as soon as Approved. This makes it a good choice for MSMEs that need funding in a short time.

  • You need to handle unexpected expenses: Short-term loans can be used to deal with a variety of needs — unlike some other types of loans that regulate how loans can be used. This flexibility, coupled with quick access to funding, makes short-term loans the ideal financing option for handling unexpected business expenses.

  • You don’t qualify for traditional loans: Alternative lenders often have less complicated borrower requirements; Unlike traditional banks and lenders, this model loan platform does not require a minimum operational history of two to three years, or an extraordinary business credit record. Thus, this can be a viable choice for small businesses or those just starting out – who fail to qualify for traditional financing.

  • You have a stable cash flow: Instead of monthly repayments, short-term loans are usually paid every week or every day. This is an important factor that you must consider if you are dealing with inconsistent cash flow, because it can be a difficult task in completing your loan payments later.

Tips to help you prepare a short-term loan application

Tips to help you prepare a short-term loan application

Increase your personal credit score

“Why can a personal credit score affect my small business loan application?” Is a question that many entrepreneurs often ask.

Because your personal credit score is an indicator of how well you are able to manage your personal finances — and the implication, this score is a reference for creditors to assess how reliable you can be to regulate business payments later. Having a strong personal credit score is very important if your company is a newly established company without financial records.

If your personal credit score is not what you want, here are some steps you can take to improve it:

  • Look closely at your credit report: At a minimum, you review the credit report once a year. Be sure to report the errors you have encountered, because small errors such as miscalculating calculations can affect the credit score.

  • Always pay on time: A simple step, but it is very important in increasing your credit score. To prevent possible errors, it’s a good idea to set up payment reminder notifications, or pay monthly repayments automatically.

  • Avoid making too many credit requests: When you apply for a loan, there are two types of checks that are carried out: soft pull inquiries and hard pull inquiries. The first occurs when your credit is reviewed as part of a background check, while the latter when a prospective lender checks your credit as part of a loan decision. Hard pull inquiries will be recorded in credit reports that are integrated with the central bank for two years, and can have a negative impact on your credit score, while soft pull inquiries will be documented as notes in the database. You have to be careful when making multiple loan applications in a short time, because it can give prospective lenders the impression that you only want to find funds without thinking about how to return them.

Having a trusted online reputation is the key

More and more lenders check your profile across online platforms to find out how your business is running, rather than just assessing your application based on factors such as an established credit history or certain minimum annual income. Here are some tips to help you manage your online reputation effectively:

  • Be responsive: The way you communicate with consumers on social media shows how you do business. If you are responsive and timely in answering messages and comments online, you give the prospective lender that you are able to build positive relationships with customers, provide exceptional and serious service to your business – all of which are a sign that they will invest in the business right.

  • Request a review: A review or online review of you can show what your business is like — it shows that if your business has a good reputation, your product or service request is good and you engage the customer effectively as a source of input advice and business improvement. Providing reminders via email or notifications and offering incentives is a strategy that you can implement to encourage your customers to give positive reviews.

  • Building thoughtful leadership: Connecting with influencers in the industry you are in, participating in community events, and investing funds to mix powerful content-based marketing strategies are steps you can take to build your self-image as a leader who has lots of ideas — and your business as a leading company that makes valuable investments.

Where can I get a short-term loan for my business?

Where can I get a short-term loan for my business?

Traditional banks and lenders usually have strict loan terms — such as having an outstanding credit record, a minimum of two to three years operational history or an annual income of at least IDR 2,000,000,000.

These provisions often make it difficult for small businesses to qualify for traditional loans. Although there are several MSME funding options for business owners, the emergence of alternative lenders has opened up new possibilities. Offering greater flexibility, an efficient application process and quick access to funding, this creditor can be a viable choice for small business owners in seeking external financing.