Tips To Get Away From Online Loan Scams

The most basic lesson in protecting against online loan fraud is to find out who you are dealing with. And that goes for either individuals or institutions.

In addition to researching if the company is reputable and authorized by the Central Bank to operate in the country, make sure that the professional who makes the contact really works for those who say they work. Check also the existing complaints against the company in consumer advocacy bodies.

Advance payment, never!

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If someone requests advance payment to release loan, run because it is scam for sure. Any charge for intermediation, commission, or the like by the person offering the service is illegal. The only fees that may be charged are those provided in the table of the contracting financial institution. Sounds like bullshit, but there are not a few cases of people who “fall for it” and of course never get the money back from the advance.

The least an online lending institution can offer is security. Also because there you provide sensitive information that may fall into the hands of malicious people. And how do you know a website is secure? Simple: Just look in the upper left corner of the screen, where is the address of the page. If there is a picture of a small lock, in addition to the inscription https (remember: “s” insurance), it means that the site offers safe navigation.

Is Good Finance reliable? The answer is yes!

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These are just some basic precautions to take when making your personal loan online . There are several companies in the market that are responsible, work within the law and seek consumer satisfaction. Research first of all, after all money is serious business.

In order not to risk falling for scam and losing money, you can apply for the Good Finance personal loan. 100% secure and online, Good Finance is owned by Enova, a multinational company that enables anyone * to apply for a personal loan to repay their debts. Even those who are negative! Simulate your loan for free!

What are the types of loans?

Market lending options are broad, do you agree? There are several financial institutions that cater to different profiles, with attractive repayment terms and small fee promises.

However, the choice of your choice should be guided by careful consideration. So to help you out, we have listed the main types of loans and the advantages and disadvantages they can offer.

Loans for individuals

Loans for individuals

1. Personal loan :

This is one of the most popular and recommended loan types for people who need fast cash. Once passed the credit analysis, the individual can receive credit within 24 hours.

However, its biggest disadvantage is the high interest rates. Personal loan charges can reach 26.64% per month, in contrast to the 4.86% per month (October / 2019 figures) of the private payroll loan.

2. Payroll Loan :

The payroll loan is also suitable for people with employment or retirees and pensioners of the INSS. Its main advantage is the low interest rates as exemplified above.

This type of loan has little flexibility as installments are automatically deducted from payroll. In an emergency situation, for example, you cannot afford to pay one of the installments.

3. Overdraft :

Considered as an “extra money”, the overdraft is available in the checking account, pre-approved, and can be used at any time, without having to look for an agency in person.

When using this limit, whenever a value is credited to the account, the bank considers it as payment of the overdraft balance. In addition, the Financial Transactions Tax (IOF) and interest that can reach 512% pa (October / 2019 values) are paid.

Corporate Loans

Corporate Loans

1. Overdraft :

This type of loan can be used by individuals or companies. The amount of overdraft varies according to the registration information and the client’s financial history.

2. Working Capital :

Working capital can be defined as current assets that are used to settle the company’s basic accounts. Some financial institutions lend this feature to help companies that are in crisis and / or want to reorganize their cash flow.

Disadvantages of this type of credit include the need for collateral from some banks. In addition, payment terms are often short and interest rates high.

3. Microcredit :

This modality is driven by the Federal Government, through the National Program of Oriented Productive Microcredit (PNMPO), and intended for companies that cannot offer real guarantees and / or annual revenues of up to R $ 120 thousand.

Although it seems quite advantageous compared to other types of loans, microcredit is offered by few banks and the amount provided is generally very low.

Where to borrow at the lowest rates

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Most business loans are made with large banks. However, these institutions fall short of desire due to excessive bureaucracy, careful credit analysis and high interest rates.

Proposing a true revolution in the financial market, fintechs offer new credit opportunities and reduced rates. Through peer-to-peer group loans, these companies unite borrowers and investors.

Good Finance is an innovative digital platform that offers loans at rates up to 60% lower than conventional banks. Operations can be carried out with or without guarantees and the installments fit the budget.

Second home loan: financeable amount and taxes

The second home loan is a form of financing that is granted by the bank when you want to buy a property that does not represent the main home or residence.

Usually, this form of financing is required for the purchase of a house by the sea or in the mountains or when choosing to make a real estate investment. This type of mortgage is also necessary whenever the house you intend to buy – although first home – is a luxury property.

Buying another home with a mortgage is very expensive, moreover the bureaucratic obligations are more complex and the taxes are more expensive. When you buy a second property, you cannot access the facilities reserved for the purchase of the first home and indeed you must also pay a higher substitute tax. In addition, the bank in these cases finances only 60% or at most 70% of the purchase price of the property.

In any case, if you want to have another home and the taxes imposed do not scare you, then this guide on how this form of financing works, can give you some information that will surely come in handy.

How does the second home mortgage work?

How does the second home mortgage work?

The first thing you need to know when applying for a second home loan is the way banks go. In general, these are much more attentive to the applicant’s income and internal procedures provide for more restrictive access to financing requirements. First of all, as I have already mentioned, the maximum amount obtainable through this is 60% calculated on the purchase price of the property. Furthermore, the repayment times are also somewhat lower, some banks provide for the repayment of the mortgage within a maximum of 15 years, few lenders reaching 20 years of age.

As regards the income requirements, the bank usually prefers that there are no other mortgages or loans in progress, or in any case that the impact of the installment on the monthly income is less than 25%. As for the financial availability, the bank grants the loan only to those who have an above average salary (above 1200 USD) or only if other guarantees are given, such as the mortgage on the first property owned.

Finally, as with all loans and loans, of course it is not possible to access the second home loan in the event of protests, foreclosures in progress, or if you have reported to the CRIF.

The second home mortgage, like other forms of financing, still provides the possibility to choose between the fixed and the variable rate. The fixed rate provides for higher interest rates, on average these are around 2% for the Tan and around 2.50% for the APR. The variable rate mortgage, on the other hand, has more advantageous interests, in this case on average the banks offer a 1.50% Tan pai while the APR is approximately 2.10%.

Purpose: What is the APR

First and second home mortgage: what are the differences?

First and second home mortgage: what are the differences?

The first home and second home mortgage, as we mentioned initially are different from each other. The main difference concerns the costs, as a loan for the secondary home has more expensive costs and also the taxes that will have to be paid on the property will be higher.

Why does the first home loan have greater benefits? According to the Italian State, having a main home is a right for all citizens. So to facilitate families to grow and create a stable environment, banks obtain subsidies, which they then use to facilitate the purchase of the first home for young people, or even for those over 35. Those who buy their first home (not luxury), it is not subject to the substitute tax, the notarial deed has reduced and facilitated costs and also the annual taxes are lower, as IMU is not paid and TARI provides for a reduced amount.

Those who buy a second home, on the other hand, will first have to pay the Registration Tax at 9%, instead of 2% as for the first, the purchase transactions subject to VAT the rate to be paid will be equal to 10% instead of 4%.

Interest rates are usually higher than those imposed for the first home loan and the duration of the loan is also reduced, so you have to repay the debt in a shorter time. The investigation costs are also higher, in fact, when you buy a second home, the cost of the technical appraisal increases, as well as the bank charges that usually in the case of second-rate mortgages at variable rates, are calculated as a percentage based on the amount financed.

How to choose the best mortgage

How to choose the best mortgage

The second home loan can be requested from all banking institutions operating in Italy. But how to choose the best one? As planned for the first home, some sites and platforms related to the banking institution offer a mortgage simulation program.

The simulation lets you know what the monthly installment to pay and what the interest rates will be applied. To get a more truthful estimate, however, it is advisable to contact the banks directly, in this way you can get a truer overview of the costs to be incurred and the monthly installment to be paid to repay the mortgage.