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.

Loan and Credit Vehicle Financing

The option is interesting for a number of factors such as your interest rate. Operations carried out in October 2018, for example, had a rate of only 2.07% per month.

There are several advantages to joining a car finance. Like interest costs, usually lower than on a personal loan.

Loan and Credit, what are the advantages?

Loan and Credit, what are the advantages?

 

At the same time, it is possible to make the installment of a high value. So instead of saving for a long time, the consumer can buy their good and then pay them off gradually.

The costs and terms of tuition vary, including considering the cost of the car. Factors such as the amount of income and monthly income of the individual are also often considered.

Disadvantages?

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In any case, this type of financing is limited. This is because it is only available to Gazin employees.

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In addition to the installment of a vehicle, the financial offers services such as:

  • Receivables prepayments,
  • Working capital
  • Loan for INSS retirees and pensioners.

As well as payroll-deductible loans and personnel, and post-fixed Bill of Exchange issues. All of these can also be used by Gazin partners and customers.

Vehicle Financing Rules at Loan and Credit

Vehicle Financing Rules at Loan and Credit

 

As mentioned, vehicle financing at Loan and Credit is only available to Gazin employees. Individuals must also be residents of the states of Paraná, Mato Grosso do Sul, Mato Grosso, Acre, Rondonia, Pará and Rio Grande do Sul.

Vehicle financing at Loan and Credit can be done by Gazin employees, furniture store and electros.

Loan and Credit financing has a repayment term of up to 48 months . The company installments up to 70% of the market value of the vehicle, and cars 0 km or up to 7 years of use.

In any case, the car is used as a guarantee of operation. This means that keeping payments on time is even more important.

Otherwise, the asset may be “taken over” by the finance company as a form of debt settlement. In any case, this is considered an extreme measure, and only occurs after the attempt to negotiate the debt with the consumer.

Five concepts you should know before hiring a loan – Savings Bank and Business Loan

Key concepts to know and understand before signing a loan contract

There are many reasons to contract a personal loan and to be able to get the liquidity that is needed in order to face an expense. Whatever the reason, the important thing is to know well what a loan is, its operation and the keys to get the best loan in terms of cost and other conditions.

For this, there are at least five concepts on loans that should be known:

 

APR

money loan

This is the Annual Equivalent Rate and reflects the real cost of the loan. The APR is expressed as a percentage and is decisive when comparing loans based on cost. The APR includes not only the price at which the bank lends the money, but also includes the expenses and commissions that the loan has. In this sense, whenever you want to compare loans, it is better to look at the APR and not only the TIN (Nominal Interest Rate) that only includes the loan price and not the other expenses.

 

Repayment term

Repayment term

It is the time that the holder of the loan has for the repayment of the loan. In general, personal loans do not usually have a repayment term of more than 8 or 10 years, although it is true that the loan amount influences here.

It is important to know that the longer the term, the more comfortable the monthly installments will be, but the more expensive the loan will be since more interest will be paid for having more money without being repaid.

It is advisable to establish a repayment term taking into account the fee that can be assumed each month based on income, being the best to return the loan in the shortest possible time.

 

Indebtedness rate

Indebtedness rate

It will be one of the aspects in which the entities fix their attention when evaluating the applicant. This is the percentage of income that will be used to pay the loan. The rest of the loans or credit operations that are already taken play here. In any case, it is recommended that the indebtedness rate or effort rate does not exceed 30% of income and in no case should it ever exceed 40%.

 

Commissions

bank loan

Not only do you have to pay attention to the interest rate that is applied to the loan, but to the rest of the expenses that can be incurred and that can make the loan more expensive. We talk about commissions, which we remember are agreed between the parties. The most common commissions are the opening ones, the one that is charged for formalizing the loan; that of partial or total early repayment, very important if you want to cancel the loan before maturity; and the delay commission, which may not exceed 2.5 times the legal interest of the money.

 

Personal guarantee

Personal loan

In personal loans the guarantee that the amount will be returned is as your name indicates personal. This means that, in the event of a default by the holder of the loan, both present and future assets will be used to pay the debt. While, in mortgage loans, the guarantee is the property in addition to the personal, in the personal are your present and future assets.

If there are guarantors and non-payment occurs, it will be the guarantors who respond to the payment of the debt also with their present and future assets until the amount due is paid.

Can the loan be considered an investment?

More and more Brazilians are realizing the importance of investing. Investing can be a great way, either to secure retirement and live a smoother life in the future, or to raise money and achieve a goal more easily. But, did you know that a loan can be considered an investment?

The loan as investment

The loan as investment

What is an investment? In the simplest way possible, it is any action in which you apply an amount of resource to receive a financial return in the future.

There are several types of investment. Not only are savings, which are the best known and probably the least efficient, but they go to the most complex stocks. However, the loan can be a very positive investment. In it, you borrow an amount of money to receive the return plus interest in the future.

It’s such a good option, which is why banks do it. Banks lend money to receive the return after their inception hundreds of years ago. In this sense, until recently, loans were exclusive to financial institutions. This is simply because of their ability to provide the capital companies needed.

However, there are currently systems and solutions that solve this problem for you, the individual, to be able to lend money and become an investor.

A good deal for both

A good deal for both

A good example is a P2P lending system , ie peer-to-peer lending or end to end. In this model, there is a platform where companies “advertise” that they need a loan for a certain reason. These reasons could be: running a project or needing resources to handle a very large order, for example.

On the platform, investors decide when they want to lend and to which company. As are many investors, capital is easily reached and the return is made through interest. That is, this set of investors played the role of the bank. Best of all, this process is beneficial for both.

For businesses, the loan is terminated faster. That is, there is a huge decrease in bureaucracy, which with banks is huge. This slows the process down and is very laborious.

In addition, borrowing from individuals through this system results in much lower interest rates than banks .

Stopping well to think, the loan is an investment for the company itself. No one borrows for no reason, so the company is investing in its future, either short or long term.

What is a secured home loan? Can I lose my house?

A number of financial institutions are currently focusing on collateralised lending as their primary credit product, particularly home equity or home equity.

But do you know how this type of loan works? Do you understand such property sale? Secured credit is a financing option where the customer gets better terms such as lower rates, lower installments and longer terms by placing a collateral as well.

It sounds complicated, but in this text we will explain everything you need to know about it so that you are not unsure when deciding.

What is property alienation?

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Disposal of property or chattel mortgage is a legal remedy used to transfer ownership of an asset, in this case a property, to a financial institution during a credit transaction. The collateralised operation allows the institution to provide loans with much lower interest rates and longer terms.

While the contract is active and there are installments of the loan to be paid, the financial institution has indirect ownership of the property and the customer has direct ownership and usufruct, ie can continue to live or rent the property. With the repayment of the installments and the consequent end of the contract the property returns to the owner.

The customer may also sell this property for the duration of the contract, provided that, with the sale amount, the debt is settled with the institution that provided the loan.

The chattel mortgage was instituted in 1997 with Law No. 9,514, which simplified the process and reduced bureaucracy, which encouraged banks to continue to carry out this type of transaction.

How it works?

How it works?

Although simpler and less bureaucratic, the process for lending is similar to other forms of lending. In this case, a credit analysis is also done to prove income and to make sure that the customer can afford the installments.

Presenting a security as well does not guarantee that the loan will be released. The guarantee is for banks and financial institutions to offer lower interest rates and longer terms on credit operations, which reduces the possibility of default.

It is usually recommended that loan installments do not commit more than 30% of the client’s monthly income and, by law, institutions may lend up to 60% of the property’s value.

But after all, can I lose my home?

But after all, can I lose my home?

Repossession is an extreme measure in cases of persistent delinquency, but this is a very expensive process for the bank or finance company, which still runs the risk of not recovering the full amount borrowed.

The property taken over by the bank in cases of non-payment goes to auction and the sale value is used to repay the debt. The excess amount is returned to the customer. In these cases, the institution only recovers the amount it gave as credit, has no profit from the operation.

What are the advantages of this type of loan?

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The biggest advantage is the much lower interest rates compared to the rates offered on other loan arrangements.

Another big advantage is the much longer lead times. In this modality it is possible to install the financing up to 180 times, which allows a greater release of funds with lower monthly installments.

While studying credit alternatives, simulate and compare the amounts paid per month and the debt amounts in different categories such as Secured Credit, overdraft, personal loans and payroll loans.

What you need to know when making a loan at a pawnshop?

Quite often, the word “pawnshop” is associated with a very difficult financial situation. Because there is nothing more terrifying than having to hand over your laptop, antique furniture or family jewelry that has been passed down to descendants of your kind for decades.

However, if you follow all the rules set by the pawn shop, then you can establish a normal mutually beneficial relationship with him.

Minimum requirements!

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The main difference between a bank and a pawnshop is that the latter will never require you to have a registration, a payroll and a positive credit history. This is the main advantage of any pawn shop. The borrower only needs to provide some valuable collateral, which can be realized very quickly if the debt is not repaid in a timely manner. Documents required to obtain a loan – code and passport.

Another huge “plus” pawnshops – there very quickly draw up documents and hand out cash on credit. The decision to grant a loan is made directly on the spot. The pawnshop employee does not need to consult or seek permission from senior management and ask for information about the borrower’s identity with the credit bureau.

The decision and the amount of the loan are announced immediately. However, the pawnshop is taking a serious risk by issuing loans as a security, as a result, the loan rate is high there, and the pawnshop crediting period does not exceed 2 months.

What do they accept as collateral in Ukrainian pawnshops?

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The most popular and most often seen as a pledge are articles and bars of gold, silver jewelry and silverware.

Gold. Almost all pawnshops accept gold as collateral. Every piece of jewelry is a piece of metal, and it is more of a luxury than a thing that you cannot do without in everyday life. Moreover, it is the pledge in the form of gold that gives you the opportunity to get the maximum loan.

Electronics and Technology. This mortgage is in second place by popularity. Most online pawnshops in Ukraine are easy to accept as collateral, equipment and electronics, so it is very easy to secure money on their pledge.

A personal car. In recent years, car pawnshops have been increasingly opened in Ukraine where the borrower can obtain credit by leaving his car as collateral. Only the owner of the vehicle can get money at the pawn shop. Most often, the car is transferred to the pawnshop and is stored in the parking lot, for which the borrower must pay an additional 300 UAH / month.

In some pawn shops you can take out a loan secured by a car with the right to use it. Such a loan is issued within a maximum of 2 hours – if there are no questions about the technical condition of the vehicle and all necessary documents. The loan rate and its amount will depend directly on the class of the car, the year of its issue and the market value.

Pawnshop loan secured by real estate

Pawnshop loan secured by real estate

Today, it is still difficult to find a pawn shop in Ukraine that will be able to issue a loan secured by real estate. It is quite difficult to issue such a loan, as this will require a certain amount of additional action. The pawnshop and the borrower must conclude a special agreement.

Then the data must be entered in the state register of mortgaged real estate. If the real estate loan is not fully repaid, it cannot act as collateral. Another nuance of such a loan – the property owner must insure it and provide the pawnshop documents that can confirm it.

What is the best loan?

There are those who run out of loans, paying everything in cash. Others, on the other hand, live on credit and accumulate debts in various options.

Neither extreme nor the other: for sound financial management, you need to rely on loans at the right time, choosing the option that offers the best repayment terms to help fulfill dreams like buying a house, starting a business or a new vocational training.

How to know which loan is the best?

How to know which loan is the best?

When you need credit, you should look at some points to understand if that option is right for you. These include the amount of the installments, the payment term, the maximum amount to be released and, especially, the interest rates charged.

It is the interest that defines whether a debt is expensive or cheap, that is, its potential to multiply over time. Lower interest rate credit options are ideal so as not to hurt your financial organization.

The Loan Villains

The Loan Villains

Among the credit options available in the market, there are some of which you should flee as they only hurt your finances. Know what are the villains of credit!

Credit Card Revolving

He is undoubtedly the biggest villain for Brazilian finances! If you use your credit card revolving every time you opt for the minimum bill payment, you need to be careful not to become a snowball. The problem is that interest rates are the highest among the types of credit available on the market, exceeding 400% per year.

Overdraft

Another big villain among credit options is the overdraft, pre-approved amount used every time your account goes negative. Interest rates are around 13% per month. That is, even if you use credit for a few days, it will have a significant impact on your finances.

Personal loan

Your bank has certainly offered you a pre-approved personal loan, right? So don’t be tempted to accept it without first analyzing the conditions very well!

This type of credit is often among the worst you can count on when you need money. In any case, it is always possible to negotiate the reduction of values ​​with the financial institution.

Credit for negative

This has been a popular credit option for the unemployed or retired, as there is no restriction on those who have a dirty name or have difficulty proving income.

Interest rates, however, are quite high due to the high default rate. And the possibility of your debt multiplying is very big in this case!

What are the best options for those who need credit?

What are the best options for those who need credit?

Don’t worry, if you need a loan to make a dream come true or even to get rid of the most expensive debts, there are good options you can count on.

Guaranteed Credit

Without doubt, this is the best credit option available on the market today. If you own a car or property in your name, you can contract this mode in which your property serves as collateral for the loan.

Due to this collateral the monthly interest rates for Home Secured Credit are around 1.14% per month plus IGPM, and auto refinancing at 1.95% per month.

Real estate or car financing

For those who buy a good, different financing is usually the best option. The higher the value of the entry, the better the payment terms. Also remember to consult different banks and modalities as there are important differences between them.

Small Loan – how it works?

What can be done with a small Caloper loan

What can be done with a small Caloper loan

Thanks to this financial product, it is possible to liquidate all or part of the amount made available to the credit line on one’s account, then spending the cash to make a wish rather than a project that is particularly important. Starting from a trip, passing through the satisfaction of family needs such as expenses for the home or perhaps the purchase or advance of a car, up to the sustaining of an expense that regards the working environment.

The credit line is linked to the account of the holder and its repayment takes place gradually with monthly installments as it is usual with a revolving card, therefore it allows the immediate support of an expense and the possibility of repayment staggered over time, knowing already in advance when you go shopping and therefore without unwanted surprises.

How the Small Caloper Loan Works

How the Small Caloper Loan Works

This credit line makes available to the customer an amount equal to 1,500 USD, which can be spent at any time for the needs deemed most appropriate. Once affected, this reserve must then be replenished by reimbursing the portion of capital used, i.e. by paying a fixed installment to be paid each month and the amount of which changes in relation to the debit balance, being 50 or 100 USD in any case. The first amount is applied when there is a debit balance between 0 and 1,600 USD, the second for amounts greater than 1,600.01 USD.

The installments are always under control, because they are the same over time and therefore allow the customer to better plan what they will spend, without finding any nasty surprises. Minicredit can be requested, following a traditional investigation, by going to any branch of the Caloper group.

Example of use and refund

Example of use and refund

The credit conditions of 1,500 USD provide an annual fee available from the first year of 20 USD, a maximum APR can reach 23.30% (including 16 USD of stamp duty due and 1 euro for sending paper mailing costs. periodic communication) and a TAN amounting to 16%. Having said this, let’s see a concrete example of the use and reimbursement of the credit line to fully understand its operation.

By using 500 USD to pay for a purchase, the customer will have a repayment plan with 12 monthly installments, in this case the sum of each remuneration to be paid amounts to 50 USD in the first 11 months, while it is 27.14 USD for as regards the twelfth installment, for a total refund of $ 577.14. This sum arises from the use of the credit line and the structured costs as explained above.

Conclusions

In support of the analysis of this financial product, we can say that it is particularly interesting, but before proceeding to its use, an adequate understanding of the operating mechanisms is necessary. In addition, the costs involved are quite high, as always happens with revolving cards, because in essence this is what it is.

In conclusion, when it is necessary to make the purchase of a consumer good, it is preferable to resort to a personal loan or as an alternative to a finalized one, this by virtue of the fact that the interests are generally much lower and therefore the costs to be incurred are more downs.