Author Archives: Melodie Barratt

Existing loans

All types of loans existing today.

All types of loans existing today.

Finalized or not, the loans differ by various factors such as the sum disbursed, guarantees requested by the lender, credit history of the applicant, destination of the credit, personalization of the repayment and possibility of obtaining concurrent loans.
There are several categories of loans dedicated to individual consumers; to be able to use it, you must be employed (private, public, state) with a fixed-term contract, or self-employed and have a life insurance policy. Retired people and companies can also make use of these services which, in particular, are:

Personal loans (not finalized): loans not subordinated to the purchase of a specific good or service; the sum is paid directly to the contractor.

Revolving credit : financing for the purchase of goods and / or services, which belongs to the type of consumer credit . It usually provides for the use of a credit card at shops affiliated with the issuing company. Alternatively, you can request a sum of money directly from the relevant financial institution.

Installment financing : generally required by a reseller of goods or services and repayable through installments over time (the seller, in addition to the purchase price, receives a commission for the loans granted).

Assignment of the fifth : guaranteed loan method that provides for reimbursement through monthly fixed installments held directly on the paycheck or pension of the applicant, this amount can not be higher than the fifth part of the salary or the pension itself valued net of withholdings.

Loans to employees : required by all those who have a subordinate employment contract, they are one of the most requested types of financing in our country. Employee loan conditions are particularly advantageous due to the instant guarantees an employee can provide to the financial institution (the salary and the amount of severance pay). They are granted without particular problems even to bad payers and protestors.

Extra transfer and voluntary assignment (without payroll deductions): allow permanent employees of medium-sized private companies to obtain higher amounts than the aforementioned methods.

Delegation of payment (Double fifth) : reserved for public employees, can be combined with the assignment of the fifth and allows to obtain an amount equal to 40% of the salary.

Debt consolidation : through this type of credit, currently in great demand, it is possible to obtain a loan or a mortgage in order to settle other loans in progress; it is useful, if more concurrent loans are active, to combine all the installments into a single solution, lowering the total interest rate.

Small loan : granted to INPDAP public employees up to a maximum of 10,329.14 euros; workers who receive a fixed and continuous monthly salary, enrolled in the “Autonomous Unit Management of credit and social services” are entitled to this loan.

Guaranteed multi-year loans : this is a INPDAP guarantee for loans against certain risks: reduction of the transferor’s salary, termination of service without pension entitlement, death of the member before the assignment is extinguished.

Inpdap loans : solutions granted to employees and retired former INPDAP (now INPS), are characterized by very advantageous and engaging financing conditions. Granted by the method of assignment of the fifth, they are repaid by deduction of the installment from the net salary or the net pension. Since the INPDAP institution took care of the pension management of state employees, when it comes to ex-INPDAP loans it usually refers to solutions designed for employees and retirees in the public sector.

Loan : the payment of installments through bills of exchange allows all employees of private companies to obtain financing without deductions even in the presence of previous credit problems.
Loan on policy : allows the customer to benefit from a loan by providing the guarantee value of the redemption of their life insurance policy.

Financing purchase of cars, motorcycles and mechanical vehicles : offered by many dealers to facilitate the purchase of cars, motorcycles, agricultural and mechanical vehicles in general (new or used).
Mortgage loan: with long-term interest, for the purchase, construction or renovation of one’s own home or another real estate unit.

Advances on invoices and contracts : a system to release receivables and put money back more quickly in the economic flow, profitable for activities involving very short-term collections.

Periodic receivables : credit method requested by a customer in favor of third parties in case of temporary transfer of a person to another place, also useful for companies with the need to finance employees abroad for work reasons without materially moving the money.

Evergreen : with this type of credit, a company can have pre-established capital up to the revocation of the parts (company-customer and provider).

Factoring : contract through which a company transfers, in whole or in part, its receivables to a company that anticipates and sometimes ensures payment on commission.
Hot money financing : type of loan suitable for medium-sized companies with an immediate credit need.

Stand by : a financial allows the repeated use over time of a soft loan agreement by a medium-sized company with a constant need for credit over time.

How long it takes to get a quick loan

Quick loans , as their own name indicates, are characterized by the immediacy with which it is possible to get the money that is needed to get out of a certain hurry.

 Quick loans, money in a matter of minutes

But … what is really the period in which you can have the cash after starting to apply for an urgent loan? Are certain ads that ensure that the loan can be obtained in a matter of minutes? The answer to this last question is brief and concise: yes.

Quick loans, money in a matter of minutes

But analyzing in depth the term of time that a quick loans supposes, the approximate breakdown of the process of requesting an express loan would be the following one:

  • First phase: enter the data of the application. During the first phase of the request for a quick loans you must specify the amount of money that is needed, the time period in which you want to return the money and you have to fill in the personal data. This process does not usually take more than 10-15 minutes.
  • Second phase: receive the approval or denial of the loan. The second phase is the most important of all, since it is the one that decides whether the user is valid or not to receive the borrowed money he has requested. The period of time of this phase depends on the lender agent that is resorted to, although the most usual thing is to obtain an almost automatic response in a matter of minutes.
  • Third phase: receive the money in the account. In the event that the loan application has been approved, the next phase consists in waiting to receive the cash in the bank account. This phase depends a lot on the bank to which the user’s account corresponds. Even so, in general, the income is made in less than 24 hours after the approval of the urgent loans.

As you can see, requesting an urgent loan is something that requires a few minutes. And if that were not enough, the money is paid almost immediately once the loans approval is obtained.

Micro Credit and Quick Loans

Have you heard about quick loans ? Do you know what they are? And the microcredit ? They are the same?

interrogacion

 

Although they seem the same, they do not have the same meaning and are very different concepts from each other, here in this section we explain the difference.

To understand better, let’s start by understanding what the difference between credit and loan is.

Credit : in a certain amount of economic resources that is available to a person or company, to be used at the time they require it.

Loan : is the amount of money that a person or company owes to someone else.

The main difference between both concepts is that the credit is an amount that the person or company that has the right to use it, can exercise it or request it at the time it so requires; while the loan is already a certain and fixed amount that a person or company must pay someone else under certain previously agreed conditions.

While the credit is not used, it does not generate any debt between the parties.

Both the credit and the loan are in a multitude of modalities in the market from: fast loans, micro loans, pledge loans, mortgage loans, personal loans, etc., and each of these serves a particular situation and need.

The particularity of the micro credits is that they are loans that are granted for small amounts, usually up to $ 10,000 pesos, and that serve to satisfy short-term needs.

The quick loans can be from small amounts like $ 500 pesos, to larger amounts for thousands of pesos, here the main characteristic is that the process of authorization and approval of the loan to the person or company that requested it, depending on the institution that it is granted, it can take up to no more than 24 hours. With this, what is being supported is to obtain resources almost immediately to solve other types of situations.

We support you to solve your short-term needs with micro loans that are approved and authorized almost immediately, based on a highly agile and efficient process, contact us through www.Smike.mx , text message or phone and We will gladly assist you to support you at any time.

How much interest do you pay on the personal loan?

Are you going to borrow money, then it is good to know how it is with interest and the personal loan .

A personal loan is a solution if you are short on cash but have to make a big expense. It can then be about a new car because the old one has gone, but it can also be a renovation that you want to finance with a loan. Anyway, you enter into an agreement with a lender that lends you a certain amount and that you pay it back over a fixed period. We looked for you how it is with the interest you pay on such a loan and how that amount is built up.

A variable amount of interest and repayment

If you take out a personal loan, you will be credited the amount of the loan to your bank account in one go. So that is your fault that you have at that moment. An appointment is made about the amount of the repayment, and that is a fixed monthly amount. Then a calculation is made. You pay a monthly amount and that is composed of interest and repayment.

You have agreed in advance with the money lender what interest is included with your loan. The payment of a personal loan consists of an amount of interest plus repayment. How much you pay in interest, the lender calculates for you. The interest is always calculated on the outstanding amount of debt. If you have the maximum debt, then you also have the highest amount of interest. Gradually the ratio becomes less. A calculation is made; total monthly amount minus interest is redemption. This means that you pay a very low repayment in the beginning and that you pay less and less interest over the years.

What about the term of a loan

You will always be inclined to want to take out a loan for as long a period as possible. After all, you pay a lower amount of repayment, which makes the monthly expenses more attractive. However, you have to take into account that you take out a personal loan with a specific purpose. If that goal is a renovation, then it is a good idea. After all, you still live in your house for a considerable number of years and you can therefore get these costs. In that case you do not pay any repayment on your personal loan while you have already lived elsewhere.

Another story becomes when you take out a personal loan for a car. You usually drive about 5 years before you buy a new one. If you have taken out a loan that runs for 10 years, it is not wise to take out a personal loan. You then pay 5 more years while the car is no longer in your possession. You will therefore always have to let the term of the personal loan depend on the purpose of the money.

Will student loan become more expensive?

Studying is likely to become more expensive in the coming years.

Student in Class 3618969705 300x196

For example, we read in the coalition agreement that the parties have decided to align the student loan with the 10-year interest rate.

That is not a good message for those who borrow money for their studies . They will pay extra interest for this in the future. Below you can read more about this coalition agreement.

Studying more expensive? That’s how it is:

Studying is expensive. But the government also incurs costs for providing student loans. After all, they borrow money for that. They get the money from government bonds. And just as you have to pay interest on the student loan, the government also has to pay interest on the amount they borrow. And they pass on this interest to all students. With long-term loans (so the longer the interest rate is fixed) the interest rate is higher.

5 and 10-year interest

The Dutch government now uses the 5-year interest rate. This interest is therefore fixed for 5 years at a negative interest rate of -0.23%. Students who borrow money from the government and want to do 10 years to redeem it, who borrow at an interest rate of (at this time) 0.58%. Because after all, the longer the interest rate is fixed, the higher the interest rate. In practice, it means that a student loan with a term of 10 years, costs about 85 euros extra per year.

The new loan standard does not apply to the students of today

There is also good news for students. Because the new interest rate for loans of 10 years, which only applies to people who will study in the future. If you are currently studying, you do not have to worry.

Ps: Before the new interest rate applies to new students, there is still a need to change the law. Definitively it is therefore not in the least … Read also how it is with student loan and buying a house .

Employer loans: Useful for employees?

An employer loan can be an alternative to traditional loan, but not only brings benefits but also some legal pitfalls. 

 

Instead of going to the bank, the path to financing can also lead to the boss or the personnel office. Whether an employer loan is better or worse than a financing at a bank, can not say flat-rate. What is certain, however, is that if you borrow from the boss, you have to pay much more attention to avoid getting into legal trouble.

What is an employer loan?

The employer loan is basically a normal loan according to § 488 ff. Civil Code (BGB). The fact that the lender is also your employer is legally irrelevant in most cases. If interest rates are not lower than those currently prevalent on the financial market, the employer’s loan is even classified as consumer loan under §§ 491 ff. BGB. Special rules apply in part to companies that are themselves part of the financial industry.

Employer loans are usually earmarked. By the way, your employer may not grant you a loan if you want to buy company-owned products – this is prohibited by § 107 of the Gewerbeordnung (GewO). The only exception: If you want to buy company shares before a pending IPO.

Tax specifics of the employer loan

If the conditions on which your employer lends you money are better than usual in the market, this is considered a pecuniary advantage. This must be taxed accordingly. So it may well be that the employer loan in the end, despite low interest rates is not cheaper than a bank loan with good terms .

The current exemption levels for benefits in kind by the employer are relatively complicated, so that legal advice from a tax expert is recommended. However, there are also costs that you should keep in mind when weighing bank and employer loan. An alternative to employee loans can be an interest subsidy: you take out a loan from a bank and your boss pays the interest. However, this is also a pecuniary advantage.

Loan from the boss: what belongs in the contract?

With an employer loan, you are to a certain extent tied to your company – that makes such financing attractive for companies. Think well, if you want that. Sometimes the boss should not even know that you need a cash injection. If you opt for the company loan, the following is in the contract:

  • loan amount
  • running time
  • effective interest
  • repayment agreements
  • collateral
  • Termination of the loan
  • Regulations, what happens when the employment is terminated

If you cancel or give notice yourself, the repayment of the remaining debt can be demanded within three months – unless you have agreed otherwise. Loans with a value of less than 200 euros can even be due immediately.

Does every employee get a loan?

There is no legal claim that your boss must grant you an employer loan. Even a wage advance, in which you do not get more money, but the payment is only a little earlier, is purely voluntary.

However, if your company grants loans to employees, the principle of equal treatment applies: the conditions must be the same for all employees. For example, part-time workers must not be placed in a worse position than people with a full-time job. However, the principle of equal treatment does not mean that all employees get a loan. For example, if there is already a wage seizure, the company may legitimately decline your request for an employer loan.

Incidentally, should you have difficulty repaying, your employer can not just withhold the wages. Because even for him the seizure exemptions under § 850 Civil Procedure Code (ZPO) apply.