What does the cost of the loan consist of?

When deciding to take a loan, we must be aware that we will not give the bank only the borrowed amount. This operation involves a number of additional costs that we need to consider to assess our chances of paying off the commitment. Let’s look at all the costs that we have to meet with having a bank loan and what they result from.

Additional fees

Additional fees

They are usually included in the cost of the loan and they are repaid with each subsequent installment. This does not mean, however, that we pay additional fees throughout the duration of the loan.

What are the additional fees charged?

This may be a fee for processing the application, for issuing a credit decision or other commissions and fees, as well as a preparation fee. It is worth verifying its amount and comparing it against the entire loan. It may turn out that these charges are too high proportionally and then it is better to take advantage of another loan offer.

Commission

Commission

Interchangeably used with the aforementioned preparation fee.

This is a one-time fee charged for the payment of credit granted. However, it is added to the capital and interest installments, so often we will not feel its amount, because this amount is spread over a long time.

The amount of commission depends on the individual offer of each bank. There is often a situation in which banks offer loans with zero commission, but then the preparation fee turns out to be higher, which we are often not even aware of, because we do not know how much the commission could be, so it is difficult to assess such a situation.

APRC

APRC

We are talking about the Real Annual Interest Rate, i.e. the total cost of the loan, taking into account exactly every dollar spent on the loan by the customer. This property is always expressed as a percentage

The loan agreement should also clearly indicate the total amount to be paid, including the loan costs, in numerical form.

Insurance

Insurance

Very often it is an obligatory additional element that banks want before granting a loan. The loan security is, of course, implicitly helpful to the client in the event of random events such as an accident, permanent or temporary inability to work, but it largely works together.

Insurance costs generate the largest expenses of the whole project, which is a loan, so if we are sure that we are able to pay it back on time or even before the end of the contract – it is worth considering the version of the loan without insurance. Sometimes, offers not requiring such security are prepared for a specific group of people. This option is usually available to people with high income and a very good credit history, but this is not a rule and you should not always be guided by this relationship.

Lack of insurance, compared to other costs of credit, we will feel significantly in a way that relieves our monthly installment.

However, if you had to take out a loan with insurance or simply choose the form of security, you can get a refund of part of this amount for the unused period of insurance.

This happens when we repay the loan in full before the end of the contract. If the commitment is closed before the due date, the premium is paid out proportionally for the unused insurance period and in the case of large loans we can count on several thousand returns.

Interest

Interest

Interest is present with every loan, because it is one of the main sources of income for banks when granting loans. Currently, interest rates on loans range from around 5% to around 10%. Interest is added to each installment, therefore, for the initial duration of the loan, in fact we repay only interest, which is even 1/4 of the entire loan. Interest rates are selected individually by the banks. Currently, banks break through offers in this area offering a very low interest rate, which, however, attracts a large audience.

Other costs

Other costs will be borne only by the unreliable borrower. It is about debt collection costs, sending reminders about the necessity of repayment and all actions aimed at encouraging the client to pay installments. In fact, a customer with arrears can increase their debt by up to half and of course we are talking about extreme cases for people with a large loan amount.

In conclusion, taking a loan must be a thoughtful decision. The creditworthiness that BIK will confirm is not all, because we also have to designate this ability ourselves and ask ourselves whether I can actually pay the given liability. Before taking a loan, it is worth checking the offers of several banks and compare where we will lose the least, then verify what monthly installment we are ready for, and only at the end go to a specific branch and submit an application. A loan is a responsible operation and the person who decides to do it must also be the same.

Does the loan have to bear interest?

It is very different in life. Sometimes it happens that we have to quickly organize a large sum of money, and at the same time we do not want to borrow a large interest rate in loan companies or banks. Then there is the option of incurring a free commitment for zero percent, not only with friends and family, but also in the case of the first loans that are offered by selected financial entities. What is worth learning about an interest-free loan?

We borrow very willingly, but we are not willing to pay back

We borrow very willingly, but we are not willing to pay back

There is no need to convince anyone that the interest in various types of loans has increased in recent years. This turn of events is affected not only by the shorter waiting time for decisions, but also by the introduction of the so-called anti-usury act in 2016, which regulated the activities of companies granting loans, as well as introduced a legal order that protects the interests of customers. This amended act hit the dishonest lenders who offered loans in exchange for high costs.

Therefore, thanks to the changes, people began to gain confidence in non-bank loans. The research shows that every fourth citizen has a difficult financial situation and every tenth has no funds for the most important needs. At the same time, some of the people declare that their income is sufficient for their current needs. Despite this, the number of debtors has increased significantly over the past three years. In turn, 22 percent of respondents admit that they have a much worse situation than last year. Low earnings and higher living costs were mentioned as the most important reason for this situation. In contrast, 15 percent of compatriots openly emphasized that they have more money in their household budget, due to repayment of loans and credits.

Does the interest-free loan even exist?

Does the interest-free loan even exist?

What does law say regarding non-interest-bearing obliations? Pursuant to article 720 of the Civil Code, the loan does not have to bear interest. Consequently, the interest is due solely to the lender if it was provided for in the contract. Usually this type of liability is a paid form. Therefore, the benefits in the interest-free form are treated as the result of the customer receiving the so-called free benefit. This also applies if the loan was concluded privately by a natural person who does not run a business. Pursuant to Article 359 of the Civil Code, the maximum amount of capital interest in the case of an interest-bearing loan may be no more than 10 percent in a year. However, if the interest rate is based on a much higher rate, the maximum interest is also calculated. In turn, when the parties specify earlier in the contract that the liability will bear interest, but do not indicate the method of interest, only statutory interest will be due, which currently amounts to max. 5 percent in a year.

How do bills of exchange work? | Loans with bills

 

Loans with promissory notes , although less widespread today than in the past, remain a viable alternative to personal loans . For example, they are a solution for those who do not meet the requirements for the other financing methods. Let’s see specifically what they are and how to request them.

Loans with promissory notes, also known as promissory or fiduciary loans, are non-finalized loans. These therefore allow you to obtain liquidity , without having to specify the reason for the request.

What are loans with bills?

What are loans with bills?

The main peculiarity is that these are reimbursed through bills to be paid monthly on maturity. The bills, on which a stamp must be imposed, are issued in the form of ” drafts” or “promissory notes”. These must be signed and completed in all their parts. The rate applied is fixed and the installments are constant.

Loans with bills of exchange can be disbursed by a finance company, private individuals and a bank . How Much Can You Get? The amounts disbursed are usually between 2,500 and 50,000 dollars, the repayment duration ranges from one to a maximum of 10 years.

Who can apply for loans with bills?

Who can apply for loans with bills?

It is a type of loan that allows access to a large audience, even to those who have difficulty obtaining other methods of credit . Bad payers can also access this type of financing and it is compatible with the presence of other ongoing loans . Pensioners , employees of the public and private sector, self-employed and also unemployed or atypical workers may request it: in the latter two cases the presence of a guarantor or co-obligation is required.

Access to the loan with bills is, as we said, generally less difficult than a normal personal loan, for what reason?

Bills of exchange are enforceable titles, which allows you to get back more easily and quickly into the sums lent. In the event of non-payment of a bill of exchange , the creditor can in fact immediately initiate a procedure for the attachment of the debtor’s assets (which is also protested).

Advantages and disadvantages of loans with bills.

Advantages

This type of loan certainly has advantages. In addition to the more flexible criteria that make it easier to obtain the loan, there is also a greater elasticity in the payments of the installments because the bills can be renewed: in fact, before the effect expires, it is possible to postpone the payment date by agreement between the leave. Of course, we must also keep in mind that the more the payment is postponed, the higher the interest to be paid.

The disadvantages

Like everything, loans with bills also have disadvantages. In fact, if you are not sure that you have the possibility to repay the debt , better avoid the bills. Skipping even a single installment in fact risks being protested, with serious consequences, which leave very little chance of obtaining other funding in the future (at least until the position is fully regularized, which requires a long and difficult procedure). The disadvantages also include costs, which are somewhat higher than other types of loans due to higher interest and incidental costs.

How to ask them?

How to ask them?

At the moment Good Finance does not present loan solutions with bills . In any case, once we have identified the entities that provide this type of loan, we recommend comparing the various quotes to check which is the most convenient.

In general, between the required documentation, in addition to the copy of the identity document and the tax code , the proof of income: for example, the last paycheck if you are an employee or the signature of a guarantor in case of unemployed. A life insurance policy is also often required.

Is personal loan at lending companies reliable?

 

 

First, you have been searching for the best interest rates for personal loans and have probably come to our site, haven’t you? Another option is that you have seen an ad from us or even received the recommendation of a friend who is already our customer. But of course, that doubt can always roll: Is the Lending company reliable?

Personal loan Loans is reliable

Personal loan Loans is reliable

Lending company has more than loans made. We serve the whole country.

Also, the company’s commitment is to bring the best credit options to the customer, always seeking to assist in their financial health.

So that you are very calm and know who we are, let’s talk about the conditions we have?

Who can apply for the credit?

Who can apply for the credit?

The dealership is made for over 21 years and the ideal is that the customer has a good financial history which will influence the analysis of the order.

Who can apply for the loan are: salaried, retired and pensioners, farmers, self-employed professionals, self-employed professionals and civil servants (municipal, state and federal).

Thus, it is necessary that the client who wants to take out a loan also has proof of income and address and has a checking account, in the case of hiring credit.

In addition, Personal Credit can be done through Credit Card, Check, Credit Card and Debit Account.

Lending company also has a credit line for negatives.

Loan Application Process:

Registration and form filling:

The customer must come to the store, register and complete our credit pre-analysis form. In case of pre-approval, the client already finds out his credit limit and its rate.

Documentation Submission

The pre-approved customer who wishes to contract the loan must send the supporting documentation of the previously informed data. This means sending ID, proof of income, proof of residence, etc.

Credit Approval:

After these documents have been validated, the client receives a positive or negative response to their personal loan request. If the customer is interested in continuing with the loan, he / she should sign the loan agreement, confirm receipt of the payment slips and validate the current account informed for the loan deposit requested.

Credit to your checking account:

All right? Once you confirm receipt of the slips and have signed the contract, the deposit is made to your account within a few days.

Payment of installments

The payment of the installments shall be made according to the due date of the slips. If the client wants to make a prepayment or loan repayment, they need to come to our store.

Necessary documents

Necessary documents

On the other hand, there is a slight variation in the requested documents, depending on the nature of the applicant’s profession or the type of loan requested, for example.

Thus, we can summarize the documents requested as follows:

  • CPF and RG or CNH;
  • Proof of residence (vouchers such as electricity, water, telephone or credit card bill are accepted);
  • Proof of income (last 90 days bank statement, pay stub, etc.).

Advantages of lending company

Advantages of Loyalty

Finally, in addition to being reliable and allowing you to be safe, fast and easy to access to the loan, you will find even more advantages:

  • Quick release;
  • Deposited the amount of the direct loan in your account;
  • Great interest rates;
  • Service your way, by phone, email or social networks.

Loan for companies operating below one year

Loans for companies operating under a year are quite a difficult matter. That is why many entrepreneurs, even before opening a business, apply for a simple cash loan and obtained funds, which they spend on the development of the company. If the credit history of an entrepreneur’s BIK is good, then he has a lot of ways to get financing. However, if the company has already appeared on the market, the stairs begin, even more so when at the beginning it brings low and irregular income. Is there a chance for a loan in such a situation? Is a loan possible for companies with 6 months of activity?

 

When a company has less than 6 months of activity

When a company has less than 6 months of activity

Generally, entrepreneurs have a choice of many different forms of financing, and regardless of the specific activity they carry out, they are happy to reach for it. The loan can help them achieve leverage and double their profits.

What are the most common types of business loans?
– investment loan – to finance the investment,
– working capital loan – for financing current operations,
– bridge loan – very helpful when you need to cover the costs of projects for which we received a subsidy, but we are waiting for a refund,
– technological loan – for implementing new innovations,
– mortgage – secured

Companies that have been on the market for a long time can choose offers, but those that are just starting their business, unfortunately, usually have a problem. Banks usually place very high demands on their clients and are rarely willing to give credit to companies operating below one year. Most often, the company must have been on the market for at least 12 months, must have documented revenues on the company account and a good credit history in BIK. Then it has a chance to get a loan from most banks on the market.

But what if an entrepreneur needs cash to start? For newly established companies, the offer is really small and only a few banks that specialize in servicing enterprises are able to grant loans to a company to start a business, although such loans exist …

– Loan for young companies – defined as a loan for start-up companies. Theoretically, such a loan is granted to the company from the first day of its operation, theoretically, because few banks have it on offer.
– Loans for small businesses – this loan is most often granted to companies for any purpose, with simplified financial and registration documentation.
– Non-bank loans for companies – banks have high requirements and do not want to take risks, but the world does not end there. Enterprises, as well as individuals who have a financial problem, can apply to non-bank institutions and take out a loan for the company.

How to get a first loan for a young company?

How to get a first loan for a young company?

Loans for companies operating below one year are difficult to obtain but not impossible. It can be enlisted, but certain formal requirements must be met. Hardly any bank, however, wants to risk and provide support to an enterprise whose future is in question. A start-up loan for a company, if already included in the bank’s offer, is usually quite low and requires additional repayment collateral.

Business loan for starters

Business loan for starters

Loans for start-up companies are granted to the company from the first day of its activity on the market and can often be used for any purpose. It can be used by an entrepreneur who carries on business for no longer than 12 or 18 months, as a natural person, civil, physical, public or partner company, or even as a farmer.
You can apply for a loan for companies operating below one year. It’s best to go to the bank where your business account is kept. The lender then has an insight into finances and usually does not need additional certificates, but nevertheless, it is better to prepare several documents in advance, such as an entry in the business register and a certificate of non-arrears with payments to ZUS or the Tax Office.
You can also apply online. Log in to the bank’s website, submit the application, complete the business plan, attach the list of required attachments and wait for the advisor’s phone number. You can apply for any amount, but it depends on the bank whether it will provide such financing. If the loan amount is low, it can be obtained without the need for collateral, but the bank may still require it, e.g. in the form of a mortgage, assignment, third party guarantee or blank promissory note.

Non-bank loan for companies without BIK

Non-bank loan for companies without BIK

You can also use corporate loans offered by non-bank institutions. The market of non-bank products for companies is not growing, admittedly, as quickly and dynamically as the consumer loans market, because there is definitely less demand. Still, it’s not hard to find. A loan from a non-bank company is much easier, and its biggest advantage is a quick decision and minimum formalities. Often a loan company does not even need any certificates from the Tax Office.
Non-bank companies offer loans to entrepreneurs, even without checking the BIK register. It is not surprising that some companies may have financial problems that resulted in a negative entry in BIK or the company is simply new and does not have such a history yet. This usually completely eliminates the chance of getting a loan from the bank. Then, loan companies come to the rescue and are able to provide assistance without checking the BIK, thanks to which the whole process is carried out quickly and efficiently.

When do we pay tax on the loan agreement and when do we not?

Our tax law is very complicated. Even the simplest things, the simplest transactions and contracts, are associated with the fact that you need to trace complicated tax records to be sure whether you have to pay tax on a given contract or maybe not this time. Should online loans be submitted to the Tax Office? What loans are taxed? This is what you can learn in this text.

Loan agreement and tax obligations

Each of us will sooner or later find themselves in a situation where they need a little more money. Will it be an opportunity to buy a holiday trip or a car, or maybe just some unexpected expense.

Finding the right loan offer, or talking to family or friends about the possibility of borrowing money, and then signing the appropriate contract, is not the end of the process of obtaining money. There remains a problem related to the Act on tax on civil law transactions.

Online loans are very popular forms of obtaining money. Should online loans be submitted to the Tax Office? Should I pay tax on them? Fortunately, doubts can be dispelled after a while. The Act on tax on civil law transactions says that the conclusion of a loan agreement is connected with the obligation to pay tax, but this obligation does not apply to non-bank customers. The most important thing is to remember that the tax obligation arises when the loan agreement is concluded between natural persons, i.e. between two friends, for example.

Exceptions in tax law

Exceptions in tax law

As in many cases, there will be a few exceptions to the tax obligation on loan agreements. The tax rate on the loan agreement is 2% of the loan value, if the loan is small, this amount will not hurt, however, the penalty, in the event of failure to pay, is as much as 20% of the loan value, which for larger amounts may cause liquidity problems financial. So when should the contract be reported and paid, and when not? It’s best to know the exceptions, and they are:

Loan agreement concluded between persons from the first tax group, i.e. with the spouse, descendant, ascendant, stepson, son-in-law, daughter-in-law, siblings, stepfather, stepmother and mother-in-law.

  • Up to the amount of 9 637, the tax obligation does not apply, however, this applies to all liabilities from the last 5 years.
  • Above the amount of 9 637 you can still be exempt from tax, but only in the case of a contract with specific persons from the first tax group, namely with the spouse, descendant, ascendant, stepson, siblings, stepfather and stepmother.

What about people outside the first tax group, i.e. extended family or friends?

  • Up to USD 5,000 for loans from one person or up to USD 25,000 from several people, of course, this applies to liabilities from the last 3 years.
  • Exemption also applies to loans from the employer’s social fund.

Knowing tax law on loan agreements is really useful and can protect you from unnecessary sanctions.

We take non-bank payday loans

If you are already making the decision to take a payday loan, it is good to know what documents you may need to receive. According to the non-bank offer, receiving payday loans is associated with much less stringent requirements set by banks. What cash transactions with credit cards look like.

How does taking payday loans look like in practice, how long does it take and what do we have to have to get such cash? When answering the questions, we must be aware of having a valid ID card. This is a requirement without which no one will risk giving us any amount without first confirming our identity.

Sometimes non-bank institutions also require additional documents. These can be electricity and television bills, on which our permanent address is confirmed. We must take into account this possibility to reduce the risk of our application being rejected.

Bank account required

Bank account required

It would seem that a bank account in such situations when we do not use the bank offer is unnecessary. It turns out that, unfortunately, a bank account is one of the requirements when applying for a non-bank payday loan. This is due to the existence of the verification fee that we send from our own bank account to confirm our identity.

Some companies also require confirmation of our earnings to analyze our options for paying off payday payday loans – Online Payday loan. If earnings certificates are required, we can expect that the parabank will want to have an overview of our account statements. This will confirm the regularity of our account receipts.

In practice, it may turn out that some companies will require additional documents from us. However, it is also certain that each company usually has its own document requirements. So they will vary depending on the non-bank institution in which we will apply for non-bank payday loans. If an application is rejected at one lender, we can always take advantage of the competitive offer of the company.

Payday loans for pensioners

Payday loans for pensioners

According to non-bank information, also persons who do not have permanent employment, as well as pensioners can apply for payday loans. People who work on temporary contracts for a specific task or job will also have no problems with taking out payday loans.

It is important in this case to document regular receipts from your work to dispel any doubts of the lender. If we mention the income of people who apply for non-bank payday loans, then we know that non-bank institutions do not have the same amount of money as banks. The range is very flexible and if the bank refuses to grant us a loan, we can certainly receive it on the parabank.

Verification in BIK and KRD

Verification in BIK and KRD

Every company that provides payday loans has the ability to check every new customer whether they are not in debt, whether they pay regular installments and what their credit history from recent years looks like. Debtor verification systems, such as BIK and KRD, are used for this. The degree of verification varies depending on the amount you are trying to borrow. It follows that by applying for low payday loans we may not be verified for debt in BIK and KRD.

Payday companies have very flexible ranges regarding the age at which payday loans can be submitted. The minimum age is 18 years and the maximum age varies. For one company it can be 65 years and for another 75 years or more. Submission of applications today in a large number of cases occur via the Internet and this makes payday loans a very fast financial product available directly from a computer on the website wallet. We should remember about timely repayment of our liabilities in the parabank because any delays will result in an increase in our obligations.