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Loan for free. Free loan in a few moment

Are you looking for a way to restore the liquidity you just lost? Maybe you want to finance your purchase quickly and you don’t have sufficient funds at the moment?

A free loan can help you solve temporary financial problems.

Free loan – what is the difference between a free loan and a regular loan?

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When borrowing money from loan companies or even banks, you usually have to reckon with the fact that the institution’s goal is to earn. Therefore, you usually give more than you borrow (unless you have the “free loan” or “free loan for 60 days” offer, but more on that in a moment). To the borrowed amount (i.e. the so-called capital part of the installment), usually fees such as:

  • The interest rate on the loan , i.e. the nominal interest rate – is a percentage that illustrates the interest rate charged on borrowed funds. The interest rate may not be higher than four times the current Lombard loan rate of the National Bank of Poland. Such a restriction was introduced so that financial institutions do not impose too much interest on the capital they borrow.
  • Lender’s margin – this is an amount determined individually by financial institutions that borrow money. It is to be a guarantee of income.
  • Costs of additional services – it happens that you can or need to use other, additionally paid products of a given company, e.g. insurance, to get a loan.

Other fees may also be added to the loan, depending on the institution’s internal arrangements. All the above elements, which are added to the capital part of the installment, are expressed by the APRC indicator. What does he mean

APRC is the actual annual interest rate. This is the percentage of the “price” you have to pay for taking out the loan. It is calculated on the basis of a special formula and takes into account all costs associated with granting the loan and its financial support. Free loans have an APRC of 0% . This means that the total cost of the loan is PLN 0 and you pay back exactly what you borrowed.

Remember that if you meet the offers “free loan 60 days” or “loan for 30 days for free”, you will not be exempted from exceeding the payment deadline. You must return the money you borrow within the time limit to avoid additional costs.

Free loan – what are microloans, i.e. Good Finance?

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Loans with zero APRC are usually granted as free loans for 30 days or free loans for 60 days, or so-called payday loans. Of course, the loan period depends on the company’s offer, but usually, it does not exceed 30 or 60 days.

Free loans are also called microloans because you can borrow a relatively small amount – e.g. 1000-3000 PLN. It is a sum that can help you meet your immediate needs, such as buying new equipment, car repairs or medical expenses.

Advantages of free loans:

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  • You do not pay any fees, commissions or interest.
  • You can get a loan in a short time – the processing of the virtual application takes up to several minutes.
  • You do not need to complete many formalities – usually, a loan is required for an ID card, 18 or 21 years old and a bank account (if you apply for an online loan).
  • You do not have to worry about your bad credit history – loan companies or parabanks often do not attach importance to your other obligations, do not check the history of BIK or assess creditworthiness.
  • Payday loans are easily available – on the Internet you will find many micro-loan offers. Remember, however, to be vigilant and carefully check the company and offers free loans.

Loans and credit are not synonymous – they are terms that mean two different financial products. The loan may be granted only by the bank. It is necessary to sign a contract, and the rules for its allocation are governed by banking law. A loan is a much broader concept.

It can be provided by banks as well as non-bank institutions and private individuals. The cost of the loan is determined individually by the institution, you can get, for example, a loan for 60 days for free.

Free loan – 60 days, 30 days? How it’s possible?

Free loan - 60 days, 30 days? How it

Free loans are not granted to everyone. In addition to the fact that you can usually borrow a relatively small amount for a short period of time, you must meet one more requirement:

Why do companies borrow money for free? Because financial institutions that offer quick loans, there are a lot on the market. To attract new customers, loan companies are preparing special offers, such as loans for free.

If you do not want to drown in a sea of ​​offers, use the payday compare engine, available online on the Good Finance portal. This tool compares various parameters in a legible way, which makes choosing the right to offer much easier.

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The total term as a benchmark for real estate loans.

Total term – the most important facts

Total term - the most important facts

The term total term refers to the length of a loan agreement that is determined prior to the conclusion of the loan agreement

The shorter it is, the cheaper the loan.

A longer term increases the total cost of the loan.

The term therefore influences the interest rate and the total cost of a loan.

Total term – definition

The term refers to the agreed contract term for a construction loan or mortgage loan. So that’s the total term for a loan.

The borrower (debtor) must have repaid the entire loan amount including interest and all associated costs to the lender (creditor) by the end of this time.

The term for a home loan or loan is agreed between the lender and the borrower. It is binding on both sides.

What is the total term of real estate loans?

What is the total term of real estate loans?

The total term of loans can vary and the choice of total term should be made dependent on various factors. Many banks offer a total term of a few years for a classic loan. These loan terms start at one year and can be extended to a total of ten years.

In contrast to a classic loan, the real estate loan (construction loan, mortgage loan) usually has longer terms. Since such a loan is usually about much higher loan amounts, it can have a total term of up to 30 years.

In principle, banks do not offer an infinite number of terms for all loan amounts. Especially when it comes to a loan of a small amount, the banks are often unwilling to grant a long term.

  • The choice of a lender also depends on the combination of the desired loan amount and the requested total term. The larger the loan amount, the greater the range of terms.

Long or short total term for real estate loans?

Long or short total term for real estate loans?

The term of a loan is largely responsible for the amount of the interest rate proposed by the bank. The longer the term of a loan, the more interest the lender charges. The cause is increased risks for the bank, which may arise due to the following circumstances:

  • Borrower becomes insolvent
  • Unemployment loss
  • Financial worries from prolonged or serious illness
  • The bank’s capital is tied up in the long run
  • No possibility of reinvesting the loan amount

The bank always compensates for these risks by raising the interest rate slightly. This means that a shorter term can have a positive impact on the borrower’s charges.

The interest rate does not depend solely on the term. It also affects the total cost of a loan. The reason for this is, of course, the period over which interest has to be paid. The borrower repays part of the loan amount and the interest on a monthly basis. However, the longer it takes for the repayment, the more interest accrues, even with the same interest rate.

What the borrower should consider when choosing the term is his own financial situation. On the basis of payments already to be made for rent, energy, fees (e.g. cell phone), food, clothing or existing loans, the highest possible credit rate should be determined and the term determined on the basis of this.

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The loan agreement – what can change in the loan agreement?

The Bank, within the scope of its rights resulting from the signed loan agreements, may change its terms. This is most often the case with mortgages. Basically, it is these contracts that are most often modified by banks, mainly because their loan period is usually very long.

In 25-30 years, there may be radical changes in the economy, which may in a way force changes to the mortgage contract. Banks do not want to incur losses, so they construct such long-term contracts with the proviso that some of their provisions may change in the future.

It should start with the fact that the bank has the right to change the terms of the contract it has entered into with the client. Most often this situation applies to mortgages, where the conditions are modified. In this case, it is worth finding out what the loan agreement requires us to do.

When can you make changes to your loan agreement?

The loan agreement signed with the bank usually contains provisions regarding in which cases changes may be made to its content. Banks usually leave a gate in the form of the possibility of making changes to the contract when the market situation deteriorates or improves.

For example, the bank’s margin may change as a result of changes in the main interest rates set by the Monetary Policy Council operating at the National Bank of Poland.

The change can also be made at the customer’s request, e.g. if he would like to make some modifications to the repayment schedule or in his own data included in the loan agreement.

What provisions in the loan agreement can be changed?

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Before signing the loan agreement, the customer must know, among other things, what mortgage terms the bank can change after signing the contract. Most often they concern:

The margin has a direct impact on the amount of principal and interest installments repaid by the customer. For this reason, borrowers are quite rightly afraid of any changes in the terms of the contract in this regard, as they can generate an additional burden on their home budget.

If, for example, a change in the bank’s margin or insurance is made by the bank in accordance with the conditions indicated in the signed credit agreement, then the customer has nothing left to do but sign the annex to the credit agreement and thus agree to the proposed terms.

With foreign currency loans, an annex to the loan agreement may relate to the conversion of the amount of the liability. Customers may also change the provisions of the loan agreements. The customer should report to the bank a change in such data as:

  • borrower’s personal data,
  • place of residence and registered address,
  • workplace.

Failure to notify the bank of such changes may cause the bank to draw legal and sometimes financial consequences for the client. Ultimately, the loan agreement may be terminated, which will result in the refund of the sum of the loan granted and outstanding.

In addition, in agreement with the bank, the loan agreement may change as regards the payment schedule. In this case, we can deal with:

  • a grace period, i.e. deferment of installment payment ;
  • suspension of the repayment period, i.e. popular credit holidays;
  • prolongation, i.e. extension of the loan period.

Much less frequent appearing modifications to credit agreements may be:

  • a change related to the withdrawal from the insurance contract or the cessation of the use of certain banking products – on which, for example, preferential price conditions were dependent;
  • change in legal collateral for a loan or credit facility, e.g. mortgage on an additional property.

In each of these cases, an annex to the loan agreement is signed.

Banks are obliged by the new mortgage act to restructure their debt if the borrower is unable to pay his loan installments. Restructuring involves changing debt repayment terms and adapting them to the client’s capabilities. It may include:

  • temporary suspension of loan repayment,
  • deferral of loan and debt service costs,
  • change in capital installments,
  • changing the period and method of repayment of the debt,
  • consolidating two loans into one.

Therefore, when you run out of funds to pay the installment, you can always count on changing the loan agreement and restructuring the debt at the initiative of the lending bank.

The new Mortgage Act imposed on credit institutions an obligation to enable debt restructuring if justified by an assessment of the borrower’s financial standing.

Changing the terms of the loan agreement on the bank’s side

Changing the terms of the loan agreement on the bank

Most banks reserve the right to change the terms of the contract while constructing loan agreements. The loan terms may change if the realities of the financial market in the country change, e.g. very high-interest rates prevail, resulting in a change in the cost of money.

The bank has the right to change the terms of the loan agreement signed with the client, especially the mortgage contract. The customer may agree to the proposed changes and sign the presented annex to the loan agreement.

However, if the changes are unfavorable and negatively affect the terms of the loan, then the borrower may think about negotiating them with the bank or eventually refinancing the loan. It involves the transfer of a loan from one bank to another.