What are consumer loans?

Surely consumer loans are not unknown to you and you have heard of them once. For example, when you go to large stores and need some capital to make a purchase. This is the case of the loans that IKEA or Carrefour offers to its clients. The consumer loan must always be linked to the purchase or contracting of a service.

Characteristics of consumer loans

Characteristics of consumer loans

Consumer loans serve to finance purchases. These loans allow financing in 3, 6 or even 12 months. As it is a type of credit associated with consumption, it is necessary to know the solvency of the future client in order to grant it. As a general rule, a series of conditions are required for customers to apply for a consumer loan. The most common are usually the following:

  • Demonstrate your financial solvency. In other words, having sufficient capacity to return the borrowed capital in the time established.
  • Be a member of your club. For example, if you want to finance the purchase of a kitchen, you will need to be a member of the stores.
  • Hire a credit card.

Although consumer loans are offered through stores, the truth is that it is an agreement between the client and a specific bank. These loans work as follows: you go to a store to buy a product and they offer you an alternative way of financing through which to make the purchase.

This purchase is made through a loan from a bank. That is, the bank advances the money to the store and you will have to return it within the established deadlines.

What are the main characteristics of consumer loans?

What are the main characteristics of consumer loans?

As a general rule, the main characteristics of these loans are as follows:

  • Capital is to be used to make the purchase of goods. Be it furniture, a computer, a car, a television, etc.
  • They are not usually of a very high amount, unlike what happens with mortgages.
  • The financial institution through which the loan is made must check the financial solvency of the client. To do this, a payroll, an affidavit of your assets or an inventory of assets is usually used.
  • The interests are somewhat high but their concession is immediate.
  • The consumer is protected by the Law regarding the behavior of the lender and the information he provides about the loan.

How are consumer loans regulated?

How are consumer loans regulated?

Consumer loans are regulated by Law 16/2011, of June 24, on consumer credit contracts. You can review it through the following link.

The Infra Bank understands these loans as one more category of personal loans. That is, those bank products through which the client receives an amount (the loan capital) that he will have to return together with the corresponding interest in the quotas established by contract.

The return of this capital is guaranteed with the debtor’s present and future assets and not with the home, as is the case with mortgages.

The Law also protects the client to exercise his right of ineffectiveness of the credit agreement at the moment in which the supplier breaches it.

Credit repurchase: learn not to fall into the traps!

Carrying out a credit buy-back can involve several risks which it is better to be aware of before getting started. So that you are well informed, we present to you the major pitfalls that you may encounter when you perform a credit consolidation.

 

Choose the financial organization to buy back your credits

credit loans

First, learn about banks and credit organizations to choose the financial institution that will buy your credits. If you only want to redeem your home loan, contact several banks, in addition to your own, and use recognized credit buy comparators.

If you wish to reschedule several credits, contact several financial institutions to find out if they are able to carry out a reorganization of your credits. If they refuse, use a credit restructuring broker, but don’t settle anything until you get your loan. Also be aware that brokerage fees or renegotiation fees can be negotiated. And to negotiate, you need to present several proposals and thus compete.

 

Take the time to study, without rushing

credit loans

Regarding the various offers that are made to you, take the time to study them well, without haste. In order for it to be successful, the repurchase of credit must be optimized. It is important not only to look at the monthly payment and the loan rate: take note of the total cost of the loan consolidation. You must carefully balance your transaction between the cost of your new loan and the lower monthly payments you want.

The profession of intermediary in banking operations (BIO) is subject to regulations. A good professional should be able to advise you well and create a file for you that best meets your needs and expectations when it comes to buying credits.

You must be careful about the amount of costs involved in the loan repurchase: they should not be higher than the savings you want to make thanks to a lower rate.

Also pay attention to the counter-proposal from your bank holding your credit. She will no doubt be tempted to offer you an offer to buy a variable rate loan so as not to lose too much compared to your current loan. And be aware that competing banking establishments will be willing to do more if you transfer your bank account to them.

By going through an intermediary in banking operations, you will be offered more flexible offers, without having to make a change of direct debit.

As you have no doubt understood, a loan repurchase must go through the competition of financial organizations. It is essential for you that you compare the different credit buyout offers on the market.

Short-term loans and the problem of differentiation.

At the moment, it seems to be fashionable for some bloggers and online journalists to report on short-term loans in general. Why this is up to date can only be guessed! The fact is, however, that pretty much every current article on the subject has more or less neglected the subject of correctness and objectivity. Which is a shame, because what is common with other loans and their providers does not seem to apply, especially when it comes to short-term loans.

The differences in the mini-loan offers!

The differences in the mini-loan offers!

But that’s exactly what you should focus on. Especially when it comes to making it clear to potential prospective customers of a short-term loan that there are differences. Instead, everything is sheared together! 

If you want to give potential prospects for a mini loan or short-term loan a real orientation with a variety of loan offers, you have to sit on the bottom of your pants. Say: do your journalistic homework! Do thorough research, analyze the market, make an objective comparison! It is simply not enough to simply complain about too high interest rates, generally too high costs and lack of transparency.

So you should already get a dedicated picture of the providers Cream bank, Fine bank, Infra bank and the Best bank. And before you get all of the above mentioned together! As a credit comparison portal, we are critical of such a pattern of “article design”. Borrowing money in the form of a loan is a matter of trust. This trust is made up of precise and objective information. Time to explain the topic of short-term loans in a little more detail.

Different loan levels for short-term loans

Different loan levels for short-term loans

The first point of criticism on our part regarding the generalized articles on the subject of short-term loans concerns the statement that should be interpreted as generally valid, that the maximum loan amount is EUR 500. Wrong, because the loan amount varies from mini loan provider to mini loan provider. While it correctly ends at 500 euros for one, it is 600 euros for the other and for another provider it only ends at 3000 euros. So how can you simply say that 500 euros is the end? Anyone who, based on such an unfounded statement, has the self-understanding of providing help for loan seekers with his article should question himself. If there is already talk about money and credit, then please with a certain self-claim – right?

Non-transparent additional options?

Non-transparent additional options?

Another topic that gives rise to criticism is the constant “complaining” about the additional options and their costs. It should also be noted here that those who can read have an advantage! But the advantage increases if you understand what you read. Every provider, be it Cream bank, Infra bank, Fine bank or Best bank, has different options in the program. However, these do not differ in the option itself. The difference is in the cost itself. Because these vary considerably from provider to provider. In addition, the options are not voluntary for all providers. Because what costs money for one provider, for example express transfer, is free for the other. No ifs and buts!

For one mini loan provider, the costs are based on the amount of the loan taken out. The other, however, estimates a fixed price. Here, too, it is important to take a detailed look at the service options offered for each individual small loan offer. In particular, what effects they have on the processing time or payment period. In addition, please do not forget the estimated costs.

Our conclusion on short-term loans in reporting

Our conclusion on short-term loans in reporting

The two examples mentioned in this article alone are clear evidence of how different the individual mini loan offers are in the market. And not just in terms of interest and term! Ignoring these differences more or less knowingly in short-term credit reporting is simply unacceptable. Because “avoiding” such information usually costs the money of the consumer! Especially when exactly the same online magazines and the journalists who work behind them when reporting on other types of credit, a lack of objectivity or inadequate research can mostly not be assumed.

So why then such negligence on the subject of mini loans / short-term loans? Why not do a really objective comparison of the providers? Is it perhaps just a general adaptation of the bad image of Payday Loans from England? We don’t know either, but we’d be interested in the answer. And an answer from the so-called credit – or rather: money experts – will certainly not be given to such a question! As an “expert” you would indirectly admit a weakness of your own performance or “knowledge”. Whereby: Would this be so bad?

What laws govern loan repurchase?

With the prospect of limiting the abuse of credit institutions and protecting applicants, the legislation has taken the lead and established various laws governing relations between the two parties. However, when it comes to the repurchase of a loan depending on the Consumer Code, there are specific laws allowing each party to be aware of its rights and obligations.

The law governing the various costs and commissions at the expense of the consumer

The law governing the various costs and commissions at the expense of the consumer

Having come into being in 2009, the Murcef law takes measures with the aim of bringing more transparency and clarity into the relationship between the applicant and the lender. In this case, by this law, the financial institution must highlight the various fees that the applicant must pay throughout the contract.

Apart from that, Murcef law also protects the borrower from any abuse undertaken by brokers or intermediaries with regard to the collection of a sum of money before the official signing of their financing offer. However, it does not affect the rate of credit repurchase practiced.

The right of borrowers to information

The right of borrowers to information

Making a decision on a credit buy-back is not done in a rush, you must be in possession of important information to make the right choice. In this perspective, the Scrivner law protects the applicant by obliging the lender to provide his customer with the necessary information directly related to the repurchase of credit so that the latter can make informed decisions. All the data allowing to clarify the advertising on the credit, the regulation on the offer and the period of reflection must be delivered to the applicant.

The law in case of over-indebtedness

The law in case of over-indebtedness

In the event of over-indebtedness in repurchase of credit, the Neiertz law treats the various prevention and its management. By the existence of the debt commission, borrowers will be able to benefit from assistance when he is in a difficult situation in financial matters.

However, this law requires lenders to carry out their investigations to find out the creditworthiness of their client before granting them a loan repurchase. Aside from that, this law offers an advantage to applicants in modulating the loan repayment duration.

Christine Lagarde law

Christine Lagarde law

For better supervision of banking establishments and consumer protection, the Lagarde law was created in 2010. First of all, the new subscribed offer must include all the different costs in the event of early repayment.

Then, the law obliges the lender to specify to applicants the total cost of the consolidation. To allow the consumer to be aware of his obligation, each offer must contain the statement “a credit commits you and must be repaid”. Finally, in terms of advertising, all types of costs must also be very specific.

Online urgent loans

Urgent online loans are one of the many advantages that are possible today thanks to new technologies. And it is so because until a few years ago, the procedures for any type of money loan had to be face-to-face, enduring long waits and sometimes having to resort several times to get it.

Benefits of urgent online loans

Benefits of urgent online loans

“One of the main requirements of urgent online loans is that to obtain a certain amount of money the only excluding condition is the possession of the deed of a property that serves as a guarantee at the time of carrying out the operation . ” But, unlike traditional banks, in institutions such as ours, the property may be in the name of the applicant or that of a family member, friend or acquaintance. This means that, guided by this exclusive condition, anyone can get the money they need quickly with great comfort.

On the other hand, private financial institutions that provide this type of urgent online loans give rise to the benefit of granting cash to people without payroll or to those who are listed in Financial Credit Institution or who are unemployed. Here they do not oblige the person to justify or explain their financial situation, nor do they carry out any type of investigation into their background.

Characteristics of urgent online credits

Characteristics of urgent online credits

In addition, among the outstanding characteristics of this online urgent credit service is the possibility of obtaining, at the time of returning the borrowed amount, small installments that will be adjusted to the solvency of the person who was benefited. Also, these private institutions do not require a penalty fee if the customer at some point in the return period chooses and can cancel multiple installments at the same time. What they apply in this case is an aliquot of 0.25 percent as amortization for the advance in the installments.

Conditions of urgent online loans

Conditions of urgent online loans

The condition of being able to carry out the management in a short time has to do, not only with the few requirements that are needed to access this service and the shortage of documents and procedures, but with the ways in which the service can be processed.

In other words, the product known as urgent loans online can be purchased through the Internet modality. In this way, the interested party can enter the company’s website to request the service as well as know all the particular conditions of it.

In addition, this modality of consultation and access to the online urgent credit service allows the future client to request a free proposal from the company to be able to see graphically what the operation contract would be like and what the conditions would be in the period of the return. Regarding this last feature, it will be useful to know specifically how the rate will vary according to the time you choose to return the money.

For whom are the redemption of credits intended?

 

The repurchase of credit also called credit grouping is a financial operation accessible to any natural person having contracted one or more loans. Civil servant, liberal employee, tenant, or owner can claim a repurchase of credit.

Private or public employees

Private or public employees

In principle, the repurchase of credit is open to any natural person who has one or more credits, having a stable financial income. Employees working in the private sector, as well as workers in a public administration can apply for credit repurchase.

As the repurchase of credit is essentially based on the amount to be repaid, the debtor’s repayment capacity will be one of the conditions required to access the repurchase of credit. Insofar as the applicant has the resources necessary to constantly settle the maturities, the debtor will be eligible for the repurchase of credit.

Seniors and retirees

Seniors and retirees

Retirees and seniors can also recover from credit consolidation. Retirement can be synonymous with loss of resources, however, a specific credit buyout allows people who are retiring or preparing to retire to benefit from a credit buyout at advantageous rates.

For this elderly population, credit pooling is granted to people 60 and over. However, the age of the borrower should not exceed 80 years when the credit ends. This debt restructuring will allow seniors and retirees to review their purchasing power increase despite their decline in resources.

Other specific cases

Other specific cases

Certain specific situations may also be the subject of a loan buy-back. The owner of a property, a lessor or an occupying tenant can also resort to the repurchase of credit. Among the specific cases of loan repurchase, civil servants are among the beneficiaries of the credit consolidation.

It is the same for people working in the liberal field who also have access to the repurchase of liberal professions credit which will allow them to cover their professional and personal debts at the same time. General practitioner, lawyer or service providers can take advantage of the credit consolidation system.

Loans without confirmation and proof of income

Loans without proof of income are an ideal option for clients who do not have a permanent income or do not want to prove their salary to the bank. The most frequent clients are women on maternity leave or unemployed applicants. This is a very popular product, but its advantages in the form of non-proof of income will be outweighed by their price or interest, because there is a significant risk of applicants.

You do not have to document income

You do not have to document income

Loans without proof of income are very attractive. You can get these loans without paperwork, without documenting the previous few months about your salary. You do not have to provide the institutions with any documents other than your name and usually two identity cards. Administratively, this loan is very simple and can be arranged within 24 hours . Everything takes place almost immediately and the money is credited to your account immediately. However, this speed and simplicity pays slightly higher interest rates than comparable bank loans with full proof of creditworthiness and income. Use caution when processing loans without proof of income, as the risk of encountering a dishonest provider increases.

Loan clients without proof of income

Loan clients without proof of income

An unsupported loan is used by people in a difficult life situation or in a situation where they get a new job, but they cannot prove their salary for the last three months because they have spent this time at the employment office. Furthermore, these loans are also suitable for pensioners or women on maternity leave.

Interest rate on loans without proof of income

Interest rate on loans without proof of income

It is important that you understand the interest rate correctly. For example, companies often attract only a few percent to the interest rate. However, if you study the contract and the label carefully at this rate, you may find that it is, for example, monthly interest, so that the loan comes in tens of percent of interest annually. Plus, you should keep an eye on the annual percentage rate of charge (RPMN) , because it is this number that shows how much you will actually pay for a given loan per year.

Liability for loans without proof of income

Liability for loans without proof of income

At low amounts, you need virtually no security. Everything is covered by high interest rates and a contractual relationship that is enforceable almost immediately. For higher amounts, where there is a greater risk and even execution will not help, a third party or some movable or immovable property is usually guaranteed. The most common form of liability for large amounts is a car or a house. However, with such a higher guarantee, it pays to try another credit product that is suitable for financing such a large burden.

Risks of loans without proof of income

Risks of loans without proof of income

Loans without proof of income or also loans without proof of income are usually provided by non-banking institutions. That is, institutions without a guarantee from the National Bank. Of course, there are quality, stable and trustworthy providers and many others on the market.

However, there are also unscrupulous providers on the market, who often plan to entice the client to potentially advantageous conditions. These conditions will subsequently turn into a unilaterally unfavorable contract to the detriment of the debtor, who no longer has the possibility of appeal after signing the contract. In short, it must meet the conditions arising from the contract, otherwise it is exposed to the risk of execution.

Loan for high school and university students: who to contact?

 

We all know the reasons why most young people attend university. It is not just a matter of several years of youth, from a practical point of view it is a title, knowledge and a better perspective for the future in terms of work and personality. universities cannot complain about their lack of interest in studying, because the lecture rooms are filled with new faces every year. On the contrary, dissatisfaction with a costly university life could legitimately be declared mainly by students whose increase in spending is not circumvented.

As a full-time college student, it doesn’t have to be easy with finances. It is truly an exceptional phenomenon when students work or even do business and can handle the high costs of the whole study on their own without the help of parents, friends or state forms of scholarships. It is no wonder that we find a minimum of such people, because studying at a university places high demands on the time that needs to be devoted exclusively to learning. Dealing with making money in this surge of money would already be a maximum overload.

So how to handle the ever- increasing economic demands of years of study?

Loan as a solution

Loan as a solution

At present, lending among many consumers plays an important role, as it is able to solve the various unexpected obstacles that have befallen them and caused a number of problems. These adverse situations are dealt with more peacefully if you know the available and at the same time simple ways to deal with them. Students can tell from their own experience how many similar situations you can experience during your few years of study and how to apply for a loan is a last resort.

What about student loans?

What about student loans?

In the case of student loans, customers often ask about its availability, as the name student reveals the purposefulness and reserved range of applicants for whom it is precisely intended. In banks, we encounter a specific type of product that can only be used by studying citizens who are able to prove attending university. After agreement with the bank and submission of all necessary formalities to the staff, the loan is approved and the client is obliged to draw funds for the mentioned purposes, if such a clause is entered into the contractual conditions.

Being a student at the moment, you have significantly advantageous conditions, so it is definitely not worth looking for other loans, as you are voluntarily depriving yourself of benefits.

The whole process is much easier for non-bank providers, whose portfolio does not specialize in specific groups of the population, but the offered loans are intended for everyone who can meet the simple conditions of approval. Simply put, if your application is considered positive, you will receive money regardless of social status. Non-bank products are not shared, you can apply in case of unemployment, university attendance, retirement or business.

The approach of non-banknotes is clearly more welcoming and open to more customers, and when we add a simple and immediate way of requesting and subsequent approval, you will probably opt for an alternative to bank loans.

Facts about student loans:

  • loans for student citizens are clearly more advantageous than traditional products
  • interest rates from 4.90% are among the lowest among all types of loans
  • if you meet all the approval criteria, you will receive funding at every bank
  • according to statistical surveys, the most common purpose is to buy a new laptop
  • The most approved loans are annually at the beginning of the academic year in the fall

Where to apply for financial aid as a student?

Where to apply for financial aid as a student?Where to apply for financial aid as a student?

There are not many ways to get a bargain student loan to choose from. On the other hand, you will not be extremely stressed, because the Internet, print or television ads bring information about several quality financial products. The most well-known companies with the best reputation occupy leading positions on the financial market, on the basis of which they present themselves to customers.

Money at bank branches

Every well-known branch operating in the banking sector can provide a loan to its customers. Of course, university students are no exception, it is essential to meet the required criteria, without which the application will not be approved. The advantage of many bank loans is an individual approach, thanks to which the conditions of approval can be slightly adjusted according to the needs of the applicant. The strategy chosen in this way may give the impression of friendliness, but in comparison with various non-banking institutions, this is sometimes absolutely not enough, as the competitive environment is leveling off and customers prefer an easier way to raise money.

Mini loan offers: A small loan with maximum effect!

Mini loan offers and profit? Does that go together? Usually the idea of ​​profit is that with a small stake you get the greatest possible profit. This is the common definition of the term “profit”. This term is undoubtedly the most common in the financial world. You invest cheaply in stocks, mutual funds and bet that you will make profits. If you have these profits paid out, you have made a profit. But professional gamers also like to use the term.

The system to achieve profit is the same: invest little, get a lot. Only the medium is different. Professional gamblers “gamble” with their stakes in games such as poker, blackjack, roulette etc. But in whatever way, the intention always remains the same: benefit from a small stake on a large scale. But not only professional gamers or investment specialists can do that. Basically everyone can do that first. How? With the use of mini loan offers in the market. Sounds absurd?

How to benefit from a mini loan

How to benefit from a mini loan

Admittedly, it sounds contradictory: benefit from a loan as a borrower? After all, you are in debt and not profit! Right, but it depends on the point of view. It is therefore possible to “benefit” indirectly from a mini loan. The profit results from the savings achieved compared to another type of loan. In plain language: Any profit is due to the comfortable framework conditions of a mini loan.

This is how mini loan offers work

Anyone who has ever used a loan in their life is familiar with the current loan model. Basically, it can also be transferred one to one to the mini loan. Only that everything takes place on a smaller scale, which results in possible, more appropriate credit terms:

  • The loan amount is lower and therefore closer to actual needs
  • The loan term is shorter, which means shorter debt times
  • Thanks to the short loan term, lower interest charges
  • Fixed credit rules compared to an overdraft facility

Customers who apply for a mini loan can also benefit from some advantages that higher-sum loans or other loan models do not offer or only offer to a limited extent:

  • The application is made online. This means that appointments with the bank advisor at unfavorable times of the day are eliminated.
  • Mini loan offers can be tailored to the acute need for money. This means that the loan amount is not inflated, which protects against unnecessary additional burdens. And before spending too much borrowed money.
  • The overview of the debts from the loan is guaranteed thanks to a fixed repayment date. This means that there is no risk of over-indebtedness or unorganized & uncontrolled deleveraging, such as with an overdraft facility.
  • Loan approval is also possible with low incomes. This means that even those who are financially a little weaker have the chance to treat themselves to a smaller purchase, to save Christmas or to pay the plumber for their work on the holiday.

Why do you hear so much negative about mini loan offers?

Why do you hear so much negative about mini loan offers?

Again and again there are of course black sheep mingling with all the reputable providers who want to get their piece of the cake from the mini loan offers. Unfortunately, all too often they find willing, good-faith victims on the Internet. Of course, the cheated customers take their breath away. The media are only too happy to take up this mood and make “blanket judgments” about an industry in which there are also good mini credit providers.

It is therefore all the more important to find those mini loan providers and thus select a reputable loan service. Reliable and honest mini credit providers usually recognize those interested quickly based on their transparency and external presentation. For this, the Internet is at least as good a tool as for trickery and attempted fraud.

If all information about the company and the loan offer can be found on the homepage in a clearly understandable manner with just a few clicks, this indicates a transparent business conduct. If this is underlined by testable seals, awards etc., most of the doubts should actually be pushed aside.

So if you inform yourself well about your loan service for a mini loan, you will be spared unsightly surprises and need not be bothered by negative (often subjective!) Reporting on mini loans.