Year: 2018

Bridge loan: what is it and what is it for?

A bridge loan is a type of special loan granted by some financial institutions when their clients have an immediate need for financing. Its main characteristic is that it has a temporary character, until a second definitive credit is formalized.

The main requirement to qualify for a loan of this type is that future income can be secured. In other words, the interested party must guarantee the repayment of the loan. Without this guarantee, no entity will grant you the financing.

What is a bridge loan for?

Bridge loans are also known as “bridge mortgages”, since their main purpose is to provide liquidity to someone who wants to acquire a home without the need to quickly sell their home in order to pay for some kind of advance payment (for example, in the case of houses that are not yet built).

Thanks to bridge loans the borrower can sell his house in a more relaxed and unhurried way. Most financial institutions grant a period of between two and five years to make the sale effective, more than enough time to get a good offer and not to sell the house at any price.

How is a bridge loan different from a normal loan?

Bridging loans usually end up integrated into the mortgage of the new home that is purchased. This makes things much easier, since the debtor, if he does not want to, does not have to pay a normal fee (in which interest plus capital is amortized) as he would with a personal loan.

On the contrary, a bridge loan can be paid with a lack of capital ( capital is not amortized and only interest is paid); or with a reduced special quota, that is, the fee payable is lower than the one that will be paid by subscribing the mortgage (and most of it corresponds to interest).

Almost everyone who hires a loan of this type choose to pay only interest. The capital is returned when they sell the house and formalize the mortgage.

Disadvantages of the bridge loan

As expected, everything that glitters is not gold. We start from the basis that the financial institution assumes two important risks when it grants a loan of this type: first, that the debtor is not able to sell the home ; and second, that he can not repay the loan. Therefore, it is usually a type of financing only available to the VIP clients of each entity.

But the main disadvantage of a bridge loan lies with the debtor. In the event that he is not able to sell the home in the period agreed with the bank, he will have a problem in his hands, since he will have to repay the entire loan, that is, the principal plus interest.

The advice we give you in Vivus is that you only resort to this financing when you do not have other alternatives, such as a family member lending you the money you need. And if you have no choice but to ask, be sure before doing a good market study to see if there are real possibilities to sell your house at a good price.

 

Requirements for a loan – important conditions that decide

 

Have you ever taken out a loan? In that case, you will probably know that you had to meet some requirements to get the loan amount. Nearly every bank, be it domestic or foreign, requires credit seekers and applicants to meet conditions so that the individual lender can approve the loan.

We would like to inform you in the following guidebook, who can take out a loan at all, which conditions have to be met and which role Private credit entries and income play.
Who can borrow in Germany?

Who is allowed to take a loan as a German citizen, is regulated by law. First of all, there must be a basic requirement, namely that the borrower is of legal age, ie has reached the age of 18. In addition, there must be no permanent mental restriction, otherwise the consumer would not be fully capable of acting and therefore not creditworthy.

If the loan seeker is under guardianship or care, he can not borrow on his own. In individual cases, however, it is also possible for minors to take out a loan.

However, the Bank may only authorize and pay minors a loan that has been previously approved by both the legal guardians (usually the parents) and the guardianship court. Here, there are relatively strict conditions, so that the loan to minors actually represents an exception compared to the loans to adults.

Incidentally, the fact that the volume of loans raised has risen sharply over the past 12 months is shown by the following statistics:

 

Statistics: Consumer loans of banks in Germany to households from November 2015 to November 2016 (in billions of euros) | Statista

Good to know: Credit must exist for borrowing It is essential that only creditworthy persons are allowed to receive credit. Put simply, all natural persons who are fully capable of business and thus have reached the age of 18 are creditworthy. By contrast, creditworthiness has nothing to do with creditworthiness.

What is the creditworthiness?

What is the creditworthiness?

While existing credit is also the most important requirement for banks to lend at all, there is another important aspect. This not infrequently leads to disputes, because unlike the creditworthiness there are in the so-called creditworthiness quite different views, as regards a possible loan.

Another name for creditworthiness is the creditworthiness that banks will soon have to determine for each loan seeker. The purpose of the credit check is to give the banks a picture of how likely a proper repayment of the loan will be.

How do banks determine their creditworthiness?

How do banks determine their creditworthiness?

In order to be able to assess the credit rating, the lenders look primarily at the Private credit information of the person concerned and his income. For this purpose, both persons and companies, which of course can also borrow in principle, often have to file inter alia the following documents:

• Private credit information (usually obtained from the lender)
• Payrolls
• Proof of income
• Bank statements showing salary credit
• Balance sheets and profit and loss accounts (for companies)
• Portfolio
• Income and expenditure account

Which Private credit entries affect the credit rating?

Which Private credit entries affect the credit rating?

As mentioned earlier, most lenders assess the creditworthiness of an applicant based primarily on the income and data stored in the Private credit. Therefore, of course, the question arises, which Private credit entries affect the credit rating at all. First of all, there are some personal data of almost every German citizen that are stored in the Private credit, but that does not yet affect the creditworthiness of the customer. These are, for example, data such as:

  • First and Last Name
  • Current adress
  • Previous addresses
  • Date of birth
  • place of birth
  • Different birth name

These data are merely intended to uniquely identify the individual. In addition, however, there are some other facts and data that are also stored about the respective consumer in the Private credit. It is precisely these features that ultimately lead to the rating of the credit rating and the so-called Private credit score.

It is a score that summarizes the creditworthiness of the client. Basically there are both positive and negative Private credit features, but of course, especially for lenders, the negative features are of importance. They show that the creditworthiness of the customer is not very good and therefore there is an increased likelihood of default in the event of lending.

The negative Private credit characteristics can be divided into so-called hard and soft features, whereby the Private credit itself denies in part, that there are some soft features or they would even be included in the evaluation and thus in the Private credit score. This applies, for example, to a more frequent change of employer or simply the fact of living in a certain area.

In the following table we have compiled for you what are the positive and negative Private credit features, while we also want to deal with the somewhat controversial soft negative features.

In particular, the hard negative Private credit characteristics listed in the table are, of course, relatively unambiguous and usually ensure that the bank will reject the loan application without further consideration. This applies, for example, if in the Private credit an affidavit, a reminder or even a warrant is stored. Under these circumstances, the person seeking credit can almost certainly assume that he will not receive credit from a normal domestic bank. In such a case, only so-called loans without Private credit can be an option, since the Private credit information in these cases plays no role for the lender.

What income should be available?

The banks are not only determining the creditworthiness of the customer based on the Private credit information, but income also plays an important role. First of all, it is important to most banks that the loan seeker earn an income that results from dependent employment. In addition, it is usually the case that the loan is only approved on condition that the probationary period has already been successfully completed.

For this reason, many credit seekers must also submit to the lender an indefinite employment contract which, among other things, indicates that the probationary period has been successfully completed. It is true that there is also the possibility for a self-employed person or a loan seeker with an irregular income to receive a loan. However, the chances of success are much lower here, simply because many banks have decided to grant a loan only to persons with an indefinite employment contract and income from dependent employment.

The following statistics show how well citizens in Germany and the EU can cope with bills and credit installments, which is basically their income.

 
Above all, the following customer groups have, at least more often, difficulty obtaining a loan for the reasons mentioned above:

  • marginally employed
  • trainee
  • students
  • self-employed
  • freelancer
  • housewives
  • pensioner

What role do the issues play?

On the one hand, income is important to many banks when it comes to assessing the creditworthiness of an applicant. On the other hand, however, the monthly expenses incurred by the customer also play an important role. Only on condition that one puts the income (income) in relation to the regular expenditures, the bank can actually infer whether lending is possible and meaningful.

Using the so-called income and expenditure account, every consumer can at least make a rough list of how high his disposable income is. This monthly disposable income is simply deducted by deducting all regular and monthly expenses from income (net salary) and any other income such as child benefit. Only when the balance is positive, is lending at all to think.

In the following table, we would like to list the most common income and expenses, which will probably also play a role in your personal income and expenditure account.

 

revenue expenditure
Wage / salary / officials pay / pension rental fee
child benefit Livelihood (food, clothing, hygiene)
care benefit Car (petrol, insurance, repair)
parental benefits Telecommunications (Internet, mobile, landline)
Overtime pay insurance Contributions
Income from renting Savings rates / reserves
Income from assets Additional costs (electricity, heating, water)
  membership fees
  Leisure expenses (including holidays)
  Alimony
  current loan installments

Based on such a statement of income and expenditure, the disposable income can be calculated very well. For example, if you earn a monthly net income of $ 2,500, and your total monthly spend is $ 2,100, you would have a disposable income of $ 400 per month. This is also the maximum loan installment you can afford. However, experts recommend that you do not use all of the disposable income as a basis for calculating the loan installment, but leave a certain amount of risk for unforeseen expenses. With a disposable income of, for example, 400 euros a month, it is recommended to set a maximum of 250 to 300 euros as a possible loan installment.

Tip: Calculate your free disposable income! Before you apply for a loan, you can already do something yourself to gain more clarity about your financial viability. For this purpose, it is advisable to draw up a revenue and expenditure account to determine your freely disposable monthly income.

What is the monthly loan installment?

How high the monthly credit can be, we have already mentioned in the previous section. First of all, it should be noted that the monthly disposable income is at the same time the maximum amount the monthly loan installment can make. If the credit rate were higher than the monthly disposable income, this would be a first step in a later over-indebtedness.

Furthermore, it makes sense not to choose all the disposable income as a loan installment, but it can happen again and again unforeseen expenses, such as minor repairs, which of course also have to be paid from current income, if you do not spared her want to go.

While there are no fixed values ​​in this regard, most experts suggest that the maximum loan rate should be between 50 and 70 percent of disposable income. Of course, if your disposable income is relatively high and is, for example, € 1,000 a month, you can of course also choose a much lower loan rate on the basis of the desired loan amount. It also depends on the desired maturity, which, in combination with the loan amount and the interest rate charged by the bank, ultimately determines the amount of the monthly loan installment. Over the term, you have the opportunity to reduce the monthly burden at a relatively high credit rate, which can often be extremely useful.

In the following example, we would like to clarify how the monthly loan rate changes when you adjust the term:

Credit A

Loan amount: 15,000 euros
Interest rate: 3.9 percent
Duration: 36 months
Credit: 465.42 euros

Credit B

Loan amount: 15,000 euros
Interest rate: 3.9 percent
Duration: 60 months
Credit: 298.75 euros

In this comparison, you can see that you could significantly lower your monthly loan installment on the second loan with a much longer term.

Tip! Therefore, if you feel that a loan can make it relatively tight with the calculated loan installment, simply talk to your bank about extending the calculated term to reduce the loan installment.

Do current loans have to be taken into account?

Do current loans have to be taken into account?

In the previous two sections, we informed you that not only does monthly revenue play a role, but that spending is also an important criterion by which the bank ultimately determines your credit rating. Among the numerous issues we have already listed are current loans. Of course, you also need to include current loan installments when you compile your monthly total spend. Only on the assumption that a current loan may run for only two or three months, you can neglect the expenditure in the form of the payable loan.

Otherwise, it is definitely important to consider the rates for current loans. Incidentally, current loans are also of interest to every lender, as open loan receivables do not actually increase creditworthiness. Instead, by far the greater part of banks even consider some existing loans to be more critical, even though it would not be a problem to take out a new loan because of the client’s creditworthiness. However, whether or not the lender considers credit in its rating of credit is ultimately up to itself.

Conclusion: Private credit information and income as important credit requirements

In addition to the creditworthiness that every loan seeker must have to obtain a loan, the income and the Private credit information play an important role. These two factors make banks the creditworthiness of their customers. Within certain limits, credit seekers have the opportunity to increase their own creditworthiness.

This is possible, for example, by reducing monthly expenses or by deleting a negative Private credit entry that is no longer eligible. It is important to know the typical credit requirements so that you can respond to difficulties in a timely manner and receive the desired financing.

Short-term loans

How do you get a short-term loan?

One moment did not pay attention and one has built a car accident: total loss. Now you urgently need a new car, but where do you get the money from? There are many situations in life where you need money fast. Whether the washing machine broke down, a reminder flapped into the house or an important school trip is pending. A suitable loan can thus be a great help, so you get the small change needed.

What is a short-term loan?

  • For whom is short-term credit the right choice?
  • How do you get a short-term loan?
  • The special forms of a short loan
  • The pitfalls of a short loan
  • What do you do with a bad Private credit?
  • The current figures for short-term loans

 In such cases it is important that you do not have to wait forever for a loan application, because you need the money quickly. That’s why short-term loans are the right choice, because not only can you apply for them quickly, but you also get the money faster than with the usual types.

What is a short-term loan?

The process of applying for a loan can be quite nerve-wracking and time-consuming. First of all, you have to compare different providers, move from one bank to the next, or ask in private that you can borrow a small amount. If you have found the right provider now, you do not simply say how much you want and then receive it.

You first have to fill in lengthy forms, submit income statements and much more. After that, the bank collects the Private credit information, which must also be positive. The entire process until the loan is confirmed can easily take two weeks.

Only then you get your money. If you have a lot of bad luck, the loan application is rejected and you have to start over. Since the whole process is more than time-consuming, there are more and more short-term loans on the market.

These have the advantage that you receive a confirmation or rejection of the application within a few hours. Even the money is not long in coming, because often this is already after a few days in the account.

For whom is short-term credit the right choice?

For whom is short-term credit the right choice?

It should be kept in mind that applying for a short-term loan also entails some risks. After all, the bank wants to hedge, which is why the interest rates are usually higher. The terms can vary greatly, with a matching income must show. In this respect, a short-term loan should only be used if no other way remains.

Only if one can not do without the money, such a loan is the right solution. The best way to try in advance, whether you can bypass by a installment payment or delay the payment. Likewise, relatives or friends can help if you only need a small amount. But if there is no other way, you should apply for the right short-term loan.

How do you get a short-term loan?

Today there are several ways to get a quick loan. The local banks are usually a bad address. These are still heavily stiffened by the large and long loans that people need, for example, to buy a home. Small or fast loans are rarely part of the portfolio.

    • Online credit comparisons

That’s why you should start directly on the Internet. Here you can enjoy a large selection, as more and more online banks offer various ways to quickly get a loan. The only important thing is that you do not resort to a dubious provider. Also, if you need the money fast, you should not act hastily. A good solution is a prior comparison, after which you choose the optimal offer, which corresponds to your own ideas.

    • Pay attention to independence

Especially an independent comparison can save time. Furthermore, it is important that you bring some conditions, so you can get an instant loan. First and foremost, you have to be of age. Likewise, it is important that you complete the applications of the bank completely and truthfully. As a precaution, you should have salary or asset records available for a higher loan amount. Otherwise, only a permanent residence is needed.

The special forms of a short loan

There are not just short-term loans that are similar to traditional models. This means that a short credit does not necessarily have to consist of a term, a freely selectable purpose and the desired sum. Some providers have limited to fixed forms of the Blitzkredits. So you only get the loan if you use it for a car repair.

Note:
This is not valid for any other purpose. Especially popular are fixed sums, because thus the bank knows exactly, which risk enters. The fixed sums are only a good choice if you need so much money. Otherwise, the models offered differ by their terms. Sometimes you have to use other products of the provider to get the loan with the good conditions. Here you should be careful.

The pitfalls of a short loan

The pitfalls of a short loan

    • House bank is not necessarily good

Also, if you are under pressure, you should not just choose the next best bank just because it offers a quick loan. Especially on the Internet you have to be careful, because there are many different providers who want to take advantage of the emergency situation. For example, they advertise with a particularly good offer. Favorable conditions, low interest rates and a pleasant duration. But you should not get involved too fast, because these are usually only promotional measures to attract customers.

    • Pay attention to the fine print

You should always read the fine print, so that you can avoid later increases in the conditions. Not to forget that many banks reject you if you have a negative or bad Private credit. The Private credit is an information which describes the creditworthiness. In other words, how high the solvency is.

    • Difficulties with bad Private credit

A bad Private credit can easily lead to the entire application being rejected. It is just as difficult for the unemployed or Harzt 4 recipients. These are usually rejected immediately, because the required credit rating is too low.

What do you do with a bad Private credit?

What do you do with a bad Private credit?

An entry in the Private credit can arise faster than you might think. Already a reminder, a late payment or the overdraft of the credit card will be recorded on the Private credit account. In this respect, here are all the data that are interesting for a bank. Especially branch banks require a Private credit statement before issuing a lightning loan.

This one does not submit personally, but the bank gets these directly from the Private credit. If there are negative entries, the bank can reject the loan. But often it is the case that you can not do without the money, even if the Private credit does not look too flowery.

Even in such a case, the Internet is the right address. There are many providers that allow lending without reviewing the credit rating. The disadvantage of this is that you usually get worse conditions. After all, the bank must balance the risk that you may not be able to pay. Therefore, the interest rates on credit-free loans are often higher.

Another solution is to use a guarantor. A relative or friend with a positive Private credit and appropriate credit standing may advocate for the person as a guarantor. Thus, the bank would get the money from this, if you can not pay.

The current figures for short-term loans

Over the last few years, a lot has happened with short-term loans. This is also due to the fact that more and more online banks have come up, who want to snatch each other’s customers. This competition is fortunate for the customer, because that is how the prices and interest rates fall.

A few years ago, you had to set well over 15 percent interest on a lightning loan on the table, but that has changed today. Many providers work with an interest rate of around 3 percent. Only in rare exceptional cases, the interest rate can rise to over 10 percent.

But not only the interest rates have changed a lot, but also the usable sums. In the earlier times, an instant loan seldom exceeded 10,000 euros. Depending on the provider, you can even claim up to 70,000 euros today. But you should not only pay attention to these conditions, but also to the duration.

Here, the current instant loans have copied much of the long loans. Thus one can freely choose between a term of 1 and 120 months. However, it must always be remembered that a longer term also increases the costs that have to be repaid.

Student loans can help finance that degree

Apply for student loan

Installment loans in the test – installment credit test winner 

Studying can be expensive. Both tuition and teaching materials, and the apartment must be paid. Despite Federal financial aid, some students can not cover their living expenses or receive too little other financial support. Since the Federal Constitutional Court has allowed tuition fees in Germany there is a higher demand for complementary funding options. For this reason, there are many offers for student loans from banks.

Apply for student loan

Apply for student loan

  • Interest and repayment are decisive criteria
  • Alternatives can be scholarships
  • Smaller banks usually offer more individualized solutions

1. Find out about the conditions: The most important thing in brief

Before you apply for your student loan, you should be familiar with the modalities of this particular form of credit. The student loan application, the interest rate, the repayment are weighted differently by the student loan providers. In particular, you should inform yourself whether the respective student loan requires a credit check or guarantee, how much money you receive monthly and how high the interest rate is. Often credit for student loans must be provided. We have compiled a guideline for you in which you can check the criteria for student loans.

  • Age Limit: 
 Student loans are primarily for high school graduates and graduates of vocational training, who then want to complete a full-time study. Thus, this target group is approximately between 18 and 26 years old. However, the age restrictions can vary significantly, which is why you should keep a close eye on the terms of your loan.
  • Federal financial aid: For many students the Federal financial aid is not sufficient, which is calculated depending on the parents’ income. For this reason, a student loan can be useful. In any case, make sure that half of the surviving Federal financial aid as well as the complete student loan usually have to be repaid in parallel. This can result in a heavy financial burden after graduation.
  • Internship abroad: If you are enrolled at a state-recognized university in Germany or abroad, you can finance an internship abroad with many lenders. It is best to contact providers of educational funds.
  • Berufsakademie: Studying at a Berufsakademie is in most cases co-financed by the employer. Student loans tend not to be suitable for this purpose.
  • Part-time study : Student loans are aimed at full- time study. Nevertheless, you can check whether your university offers cooperations with a specific bank.
  • Distance learning: Distance learning courses are usually part-time part-time. However, student loans can only be used for full-time study at a state-recognized university.
  • Standard period of study: For most student loans, the standard period of study may be exceeded by one to two semesters. In individual cases, you can apply for an educational loan or a graduation loan.
  • Promotion: Most student loan offers cover only the first degree. Doctoral projects are only occasionally supported. For this you can inform yourself about supraregional offers such as the DB Student Loan or about the providers of educational funds. However, the doctoral project must already be described as concrete as possible, and a schedule is created.
  • Repayment: The conditions for the repayment vary greatly between the providers. In most cases, a certain number of months (between 6 and 24 months) are determined, which after graduation serves as a waiting period. If you finance your studies through an education fund, the repayment only begins after graduation and entry into professional life. So you do not have to make the repayment until you make money.
  • Final examinations: You may be able to apply for an educational loan or a graduation loan. It is also possible to contact the Student Loan Fund (Daka) in Berlin.
  • Second degree: student loans are primarily intended to finance the first degree.

Study without worries

Study without worries

If interested, please read on here: The credit negotiation: How to prepare yourself. In many cases, flexible solutions are possible, such as interest rate cuts through voluntary parental guarantees. Especially smaller banks often offer individual solutions. Be careful not to accept additional insurance that you do not need. Since student loans must be selected individually and tailored to different target groups, it makes sense to compare the offers themselves. An overview provides the CHE study credit test every year. You can reach this test here. 

Offers of study funding

Civil service loan comparison

  • Borrow money for home purchase

  • Credit for low-income earners

  • Credit offers in comparison

  • loan comparison

I need a loan of 200 euros today

We will show you a recurring query on our website, to get a loan or a credit of 200 euros. In this case, one of our users of Mini Credits Instant, who writes us in search of information to get a mini loan of two hundred euros today. Without extending any more, we leave you directly with the email address of your query, and we will quickly go to see what are the options we find to get a loan of 200 euros (or other amounts nearby).

Where can I get a 200 euro loan online?

Hi guys!, my name is Ramón J. and I need information on how to get a 200 euro loan online. My mobile phone has broken and I need to buy another urgently, so I am looking for a financial company that offers me a mini loan of € 200 today and that allows me to have the money as quickly as possible.

Thanks in advance! 

Quick 200 euro loan, money on the spot

After reading the electronic mail sent to us by our user R, we see that you need € 200 today, where what you are most concerned about is getting an online loan on the spot, but with security.

Let’s see what are the best options to get a credit of two hundred euros fast, in order to see in depth what are the alternatives that are available, as well as which are the financial to which we can choose according to our profile.

How to get 200 euros instantly?

Whether we already have previous experience with the quick loans or if it is the first time that we are going to make a loan application in a financial sector to get a loan of 200 euros today, in our web platform Instant Mini Credits we can find a great amount of information about this financial product, which will help us to make an adequate decision according to the type of loan that we need at the moment.

Let’s focus now on everything we need to know and take into account to get two hundred euros instantly, a credit for a small amount of urgent money that we are practically going to be able to find in all financial entities of cash instantly.

Request a loan of 200 euros without a payroll

Our user Ramón does not specify in the email that he sends us exactly what his financial situation is, so we do not know if he needs to request a loan of 200 euros without payroll, without endorsement, or with Financial Credit Institutions.

As there are many possibilities and combinations that we can find, we will see each of the different options to make sure that both Ramón and all the users of our platform who are looking for information about 200 euros credits, can find the necessary information to be able to choose with criteria and with the security that we have chosen the financial one that best fits our characteristics.

At present, we could say that practically all the offer of entities that are specialized in the fast money sector can offer us € 200 loans without payroll without any type of problem, since it is a financial product that seeks to adjust to the needs and demands that arise in the society of today, looking to convert a credit product into a simplified financial service to go to when we need a small liquidity bonus, which we could not get in a conventional bank.

So, to get a quick loan of 200 euros without payroll we can choose any of the financial entities that we can find in active, since it is a small amount of money that can be requested in all entities of the sector, given that does not exceed the limitation of 300 euros for first clients that we find in many of the financial ones.
Advertising

Then, we leave you with a link to our credit comparison where we can find specific information on each and every one of the entities where to apply for a loan of 200 euros.

Where to get a loan of 200 euros with Financial Credit Institutions?

Of course, there is also the possibility that we need to have access to a loan of 200 euros with Financial Credit Institutions. So, as we have already mentioned, there are many options that we have at the time of choosing, so that both Ramón and our readers who are in this situation can find useful information, we leave you with a link to our quick loan comparison with Financial Credit Institutions, to see in depth what is offered by each one of them, as well as their conditions and requirements.

What comes perfect to remind you that you can visit our thematic post and learn how to pay an Financial Credit Institutions debt, know if you are included or simply cancel it.

Loans of two hundred euros without interest: compare before choosing

It is always convenient to start comparing loans without interest (for obvious reasons, do not charge commission on the first loan that we request), before launching to make our loan application, it is necessary that we assess our situation, that we know perfectly what exactly do we need, in order to be able to find the loan that today best fits our characteristics and needs.

Since, as Ramón tells us in his email, in this type of situations that require immediate liquidity, we attach great importance to the speed with which we will be able to dispose of the money from our credit entered in our account, so that avoid wasting time sending mini-credit requests to entities that do not manage quick loans with Financial Credit Institutions or RAI, it becomes essential to compare financial and know what they are going to offer, in order to simplify the whole process and have the assurance that when we send our loan request, we will soon have the loan money at our disposal.

“I need 200 euros”, responsible councils to request them

As we have just told you, for us your security and compliance with the request and acquisition of your 200 euro credit, in this case, is the most important. Therefore, in addition to the great advice to buy all the loans you have in your hands, we are going to offer a series of steps for you to carry out before hiring anything, and do not rush misleadingly with the request. Do not get carried away by thoughts like “I need a loan now” or “I want the loan today”, and take the first thing they offer, do not rush, compare is an instant. Keep a cool head and follow the next steps, which will save you dislikes in the long run:

  • Investigate: find out in all possible financial entities about the type of mini credit you want to hire. The conditions that they ask for and the demands to be met. Always read the fine print and remember that compliance is mandatory.
  • Compare: once you have on the table the credit institutions that grant you the credits of 200 euros, in this case, compare them. Which one will charge more? What maximum return term do they have? Do they accept the conditions in which I am? -in case you can be in Financial Credit Institutions, without endorsement, without payroll, etc.-.
  • Select: with the selection and comparison made, now you only have to decide which of all the minicréditos is the one that best suits your pocket and yourself. You just have to think that you can really meet all those demands that are asked of you at the credit institution, and do it.

As you see,   Getting a loan in a responsible and headed way is not difficult or cumbersome. It will only take you a few minutes to thank you for having invested to save you from possible big problems in the future. It is always advisable to find out what would happen if we can not return the loan on time, since buying something, whatever it may be, requires being informed about the product, and this of course also applies to quick loans.

Personal loans of 200 euros and much more. Send us your questions!

We hope that both the user who sent us a query on personal loans of 200 euros and readers who have come here looking for information about this financial service have been able to find an answer to all your questions, and can find the 200 credit € they need.

If not, do not hesitate to send us your inquiries via email, we will be happy to answer them!

Loan from the employer

An employer loan is granted by the employer to his employee. The payments are outside the agreed monthly salary. They are not part of the wage. The employer loan already has a long history. Because it has always been normal for his “masters”, for example because of illness or famine, to ask for a loan.

Introductory overview of the topic Credit by the employer

  • In-depth information on the subject of credit from the employer
    • The employer loan agreement
  • Special forms for loans from employers
  • How are possible pitfalls in the issue of loans from the employer
  • What to do if bad Private credit / credit rating?
  • Current figures and interest rate developments

 

Introductory overview of the topic Credit by the employer

Introductory overview of the topic Credit by the employer

In the present time, the motives for a request for an employer loan have changed. Now, most of the necessary purchases for a car or for housing items are reasons for the demand for an employer loan. The size of the company in granting loans to employees is crucial. After all, not every company can afford to pay employer loans to its employees.

For example, small craft companies in particular see themselves as being exposed to a constant financial struggle for survival, and in most cases simply can not afford to lend loans to employees. Medium-sized family businesses with a very close bond with their employees are much more likely to make such a loan available.

By contrast, large companies with a largely anonymous, interpersonal corporate structure are more likely to shy away from distributing employer loans. The employee is considered as a factor of work and profitable economic entity. Private needs are usually not of entrepreneurial importance. Furthermore, the inhibition threshold of the employees alone to lead a demand for such a loan experience is also rather high, due to the lack of personal ties between the employee and employer.

Employees in the civil service even have decisive advantages in the area of ​​employer credit, as there are portals for financing both for civil servants and employees in the public sector. With these portals, the employees in the public service can find out on their own whether they are already eligible for such a loan.

In-depth information on the subject of credit from the employer

In-depth information on the subject of credit from the employer

The employer loan agreement

In recent years, the Federal Ministry of Finance has adopted the issue of employer loans and defined clear guidelines and contractual components in order to find a clear distinction between when it comes to an employer loan and when it comes to a wage advance.

An employer loan is always available if there is an unscheduled payment. A credit agreement must be concluded in which all relevant parties are named. Relevant parties are the employee and the employer. The deciding factor is the loan amount. However, with regard to the amount, it should be noted that the legislature expects the payout sum and not the repayment amount. In the further course, the interest rate for the employer loan must be determined. It should be noted that the employer does not have to charge interest. However, if the employer does so, it is important to note that the monthly interest savings of more than € 44.00 per month must be taxed as a salary increase.

If an interest rate is charged, it should be noted that the interest savings of the interest rate charged, if it is less than 4% of the customary effective interest rate, must also be normally taxed as a salary component. Likewise, the term of the lending business should be determined. The last very important component concerns regulations regulating the repayment modalities in the event of a separation of the employment relationship. In practice, in particular if the duration is longer than the employment relationship, a market interest rate has been established.

Special forms for loans from employers

Special forms for loans from employers

The most important characteristic of an employer loan is that it is the employer’s sole employer. In practice, a pure employer loan in which the employer pays the entire loan amount to the employee and then reclaimed by installments and fixed term and the form of the so-called interest subsidies for bank loans distinguished. In principle, tax law aspects must be taken into account.

How are possible pitfalls in the issue of loans from the employer

How are possible pitfalls in the issue of loans from the employer

The loan from the employer certainly has advantages and disadvantages. It is important to think about three factors in this regard in advance. What about the emotional, tax and rational factors?

    • The emotional area

An employer loan apparently gives the employer relatively much power over the employee, it seems at first. Because employers often think that they can increase the employee’s loyalty to the company and at the same time be sure of the employee’s loyalty. In such situations, however, the employee initially has attachment anxiety, as in any good relationship.

He is usually confused at this point, because the bond puts him under pressure. What happens if the employee chooses an alternative job offer during the term of the loan, then they diverge well. Will financial concerns be too demanding? In parallel with the employee’s thoughts on whether to make that commitment, in the event of bad economic situations in the future, the employer will also think twice about whether to terminate his debtor, or at least to his colleagues.

Note:
He will simply want to counteract a debtor’s insolvency here. The tighter emotional level that undoubtedly arises here is also called the Benjamin-Franklin Effect. Because it inevitably creates a positive mood and emotional closeness.

    • The tax area

When assessing the tax environment, it is usually easy to see that it makes sense to take out an employer loan rather than opting for the bank’s classic financing option. Employees can participate monthly in an allowance of € 44.00 per month. In addition, employees benefit from a generally more favorable effective interest rate.

    • The rational area

The employer can use his credit decision rationally to decide whether he really wants to make money available to his employees. He usually knows the employee well and can weigh quite rationally whether an insolvency could threaten. Both the employee and the employer take a risk on an employer loan.

In the case of a culpable dismissal of the employee, the employee may well expect that the remainder of the loan amount, which is still open, is due immediately. A wage deduction is feasible here. However, it is questionable that the open wage is sufficient. Here comes the question of the balance. An ex-employee looking for a job usually has no exorbitant financial resources in the short term, so the actual repayment is questionable.

Note:
In addition, the employee can also decide on a job change within the credit period and then move on. Again, the former employer then has to wait for his money within the agreed repayment period. The risks of the employees are described as similarly complicated.

What to do if bad Private credit / credit rating?

What to do if bad Private credit / credit rating?

The Private credit has only a minor role in a real employer loan, without the interposition of another bank for the loan payment. Rather, the decent impression and the personal commitment to the topic play a role here. An employer loan is a successful alternative, especially if someone does not want to further burden their Private credit or credit rating.

Current figures and interest rate developments

Current figures and interest rate developments

Interest rate developments on the market are very positive for borrowers. The prime rate is stable low and the banks pass the low interest rates on the market so that reasonably priced loans can be spent. In general, taking out a loan becomes problematic only when there are problems with the Private credit and the credit rating. Then consumers have to turn to alternative investors. There are alternatives on the Internet. There are a number of online portals that provide private investors and prospective creditors. But here, too, the interest rates are quite high.

Swiss loans are another option for borrowing. Private credit entries are not of interest here. It concerns the pure creditworthiness and income situation of the applicant. However, Swiss banks can pay these loans in the form of high effective interest rates.

The way to the employer, the demand for a loan amount X can be quite advisable here. In addition to all the emotional or even rational disadvantages that are first of all focused, the employer is in a position to invest in the employee at very favorable conditions in the form of a staff credit. However, the balance is up to each one.

Loans and Transfer for Pensioners

Loans and Assignment for Pensioners

Do you need new liquidity and are you a pensioner? Not a problem, We can help you! Make your dreams come true without braking from the age of the registry. Discover the loans suitable for you, from small to higher figures. Discover us, which has been operating in this sector for over ten years, helping its customers in difficulty, in an indifferent way throughout Italy. Ask for a free consultation and / or a free estimate by filling out this form : Click here and fill out the contact form now, entrust it to our experts! You will receive a call from an expert advisor within 24 hours of the application.

Loans and Assignment of the Fifth for pensioners: What are we talking about?

The pensioners can choose between two modes of loan according to their age. The personal loans are in fact granted on condition that the duration does not exceed the age of 75 years of age of the applicant when the contract expires. For all pensioners, however, who have already reached 75 years of age, you can request, instead of personal loans, the assignment of the fifth pensioners for pensioners. In addition to the possibility of deferred payment up to 120 months , then ten years, the assignment of the fifth pensioner pension proposed by Isocredit allows the application of a term of up to 85 years of age when the fifth retirement contract for pensioners expires. . You can request in this way up to 30000 euros and as a guarantee there will be your income that must be at least equal to 600 euros per month.

Loans and Transfer for pensioners: Who can apply for funding?

In addition, the assignment of the fifth to retirees allows to obtain credit, even if reported in crif, experian or ctc as bad payers, protested or distrained. Isocredit’s transfer of the fifth pension to offers the possibility of obtaining credit, even if there are several personal loans in progress that preclude the possibility of requesting other personal loans, or because they are too recent, or because they commit a large part of the monthly pension. Even in the case of recent waste caused by the signature of guarantor made to a friend or relative, Isocredit can help you with liquidity. The assignment of the fifth pensioners allows you to obtain good liquidity up to € 30000 with an installment of up to one fifth of the monthly pension, less yes, but higher no and the assignment of the fifth does not require any guarantee signature.

Loans and Transfer of the Fifth for pensioners: How can I request it?

Requesting loans for retirees or transfer of the fifth with Isocredit is very simple and fast! You can do everything comfortably online from your home pc or your smartphone. How? Just enter some personal data within our form and within 24 hours our expert advisor will be at your disposal for advice , feasibility of the loan and / or assignment of the fifth and a free and without obligation. Here is the link that will take you to the page for the loan request that you require: Click here and fill out the contact form now, entrusted to our experts! Then to continue with the practice, for a detailed estimate the necessary documents will be: cud, identity card and social security number.

What happens if I can not pay a mini loan?

Non-payment of a mini loan. What happens, what are the consecutences?

First of all, is to comment something important and that summarizes the whole post:

Not paying a quick credit, it has consequences.

Something that had helped us at first, for needing urgent money, can become a problem of arrears and interest commissions, which add up and continue. Basically it is the same as if we do not pay any other loan or credit, the amount will increase, as the days, weeks… months go by, without paying it. 

Hence, in minicreditosalinstante.com we insist so much on our post, on the need to be clear that we can return the capital on time, and not try to fix a problem by creating a bigger one.

Otherwise, we can see ourselves included in delinquency files, which is what usually happens when we talk about the default of a mini loan. It is not the same, obviously, duty 30,000 euros that 300, the consecutences are not equal, because it will depend on the financial institution decides whether it is worthwhile to claim judicially or not.

Even so, the mere inclusion in a delinquency file is, at least, a real task, when looking for financing. And not only financing, also things as simple as hiring a telephone line, renting a home (and contracting services in it, such as electricity) or any other service / product, where the company consults and decides on these lists of Defaulters, if they want us from clients or reject our request.

If you want to know if you are included in Financial Credit Institutions, we have prepared the articles for you, to know if I am in Financial Credit Institutions and to leave Financial Credit Institutions

Non-payment of a credit in stages

As we have already mentioned throughout this entry devoted to the non-payment of a loan, when we stop paying a loan – like any other type of financial service – we will have to assume a series of consequences, among which more usually we have the progressive increase in debt as the weeks go by.

It is for this reason that before applying for a loan we must take into account that once the term of this has expired, we will have to return it, both the total amount borrowed and the interest.

When we apply for a loan, we must do it with a good organization of our monthly budget, with the assurance that in the future we will be able to face its repayment, thus avoiding incurring in a possible default of a mini credit.

However, it may happen that throughout the return period that we had agreed with the financial, for example Vivus (or any similar entity) weeks ago, there are more unexpected expenses that alter our budget, and prevent us from having enough money to cover all of our pending payments; Situations that can lead us to the non-payment of our microcredit, generating still greater debts.

If we reach this situation of default we will find the following stages:

Stage 1 – Increase of outstanding debt due to late payment

  • The first thing that we will find at the moment we stop paying our credit for the first time is a significant increase in debt, which will be added a series of interests for delay that will vary according to the amount of time that we are delayed in the payment.
  • In most financial institutions we will find fixed fees for non-payment plus a variable percentage that will be added to the total to be returned month by month, thus generating that the amount that we have to pay to pay off our debt becomes bigger and bigger with the passage of days or weeks.

Stage 2 – Claim for payment by judicial means

  • Although each financial institution works differently and manages the non-payment of a mini-loan according to its particular terms and conditions, the most usual thing that we will find once several months have passed since the default (this period can be from third or fourth month) is that we are required to pay our debt through the courts.
  • If after the legal claim of the debt we still can not cope with the payment and respond to what the entity in which we contract our mini credit requires us, it can go as far as the seizure of goods, although this is likely to vary according to the type and amount of loan contracted, as well as our possessions.

Stage – 3 Financial Credit Institutions and other delinquency files

Finally, we find a consequence generated by any type of non-payment: our personal data will become part of lists associated with late payment, such as Financial Credit Institutions.

At the moment in which we stop paying our credit, we will become part of delinquency files. A consequence that will negatively affect our credit history, and that will complicate our future access to other financial products, such as new loans or financing.

These three phases summarize the consequences that we are going to find when we stop paying our loan, since we can not ignore the fact that each financial institution has a different way of managing defaults, so that there is the possibility that there are stages that we have not described here.

Stop paying a loan generates the increase in our debt, as well as our entry into delinquency files as Financial Credit Institutions, so that when we see that we will not be able to meet the payment of our credit within the term we have established with the financial, the best we can do is contact the entity, and communicate our situation so we can request a deferment of payment, reaching an agreement that is beneficial to both parties.

We must also bear in mind that it may happen that, simply, we can not pay for it, it is not that we do not want to.

There the first thing will be to get in touch with the financier and negotiate a form of payment, which comes as close as possible to our possibilities. Because one thing is clear: if you can not, you can not, period.

When we ask for a mini-loan, we often ask ourselves what can happen if we do not manage to pay it off

Something that we never expect to happen and in fact it is usual that it does not, but that is, nevertheless, a possibility that we must take into account. In fact, these types of loans have high interest and costs for delays to protect against high delinquency rates. That is why in this article we will try to explain to you in the clearest and most precise way what can happen in general terms if we stop paying a mini-loan.

First of all, some recommendations to not reach the point of not being able to pay the mini-loan.

First of all we must be clear   that a mini-loan advances money to us, but it’s not like a credit that we can ask for in a bank, which gives us a large amount of money that we could never have available if we did not save for a long time (like, for example, when we bought a home); an amount of money that we can return in many months for months or perhaps years.

It is an amount that is lent to us, but that we will have to repay in about 6 or at most 12 months, so we have to be clear that it is a money that we should be able to gather easily and in a short time.

We must also take into account that in microcredits the percentages of interest are usually high, and even more, that these interests increase a lot if we delay, so it will be very difficult for us to return the amount that they have lent us if we do not comply, that is to say that in cases of default you fall into a vicious circle in which it is better not to enter.

So, as you can see we have to think a lot about the amount to ask and how our monthly payments will be, which, we remind again, should be consistent with the money that we usually have, or every so often.

Now we go with the consequences that will bring us the non-payment of a mini-loan:

The first thing that happens when we leave without paying a single fee is that they will contact us, by phone and / or by e-mail reminding us of the payment. It is also when interest for late payment begins to be applied, which starts at 1% or 3% and goes up as days go by and unpaid installments, although these percentages differ greatly depending on the company. To this can be added a commission for claiming unpaid fees that can be around 25 or 30 euros. Only with this we can have increased our debt by 10% or up to 40%, depending on the cost.

If we leave a second installment pending, it is easy to include us in some list of defaulters as Financial Credit Institutions, which will prevent us from requesting future credits and financing other purchases, with the exception of the credits with Financial Credit Institutions, which certain entities grant. Of course, interest on late payments will continue to rise (they can reach over time up to 100% or more of the amount borrowed, that is twice the money we have requested or more, according to the financial). 

From the third installment that we leave without paying, the legal measures will begin. Once you start with a judicial procedure, the times and consequences will be different depending on the type of loan and the amount we owe.

In the case of a mini loan (about € 300 or € 600), after putting us on the Financial Credit Institutions list, it is not easy for us to be harassed by lawyers, and in fact some sentences have penalized the large interest for delay in some cases.

Of course, there is something that is undoubtedly more annoying for a debtor, in addition to the fact of not being able to ask for any more credit, and are the calls from recovery companies, which constantly claim us the money by calling all the telephone numbers that some way they are connected with us.

Loans without equity

What to do if bad Private credit / credit rating?

When bankers talk about a loan without equity, the loans are mostly real estate or condominium investments. As early as the beginning of the last decade, it was a rule of thumb to contribute at least 20.00% to 30.00% on a property or apartment purchase as equity capital for the planned project. This hurdle has fallen more and more in recent years. The current trend is based entirely on the British and Americans, who have been using full financing for real estate needs for decades.

Introductory overview of the topic of loans without equity

  • Change in bank recruitment to grant a loan without equity
  • Mandatory prerequisites for lending a loan without equity
  • Sample calculations
  • Forms of the loan without equity
  • Possible pitfalls of loans without equity
  • What to do if bad Private credit / credit rating?
  • Current figures and interest rate developments

 

Introductory overview of the topic of loans without equity

Introductory overview of the topic of loans without equity

Rising rents, extremely low interest rates and rising real estate prices are causing more and more people to want a home and thus created retirement savings. Banks often make it possible for clients who do not have the necessary capital reserves to fulfill this wish. The concept behind loans without equity is simple. The banking institutions extend the entire purchase price, including incidental costs, such as brokerage commissions, to your customers. The customer thus saves his nest egg and comes in parallel quickly to a possible retirement.

Change in bank recruitment to grant a loan without equity

Change in bank recruitment to grant a loan without equity

Looking back at the historical perspective of lending indicators once for about 15-20 years, it can be seen that in the past, full financing would have represented an impossible event in Germany. Any bank in Germany would have picked up and asked for many different collateral, which reduces the lending risk of the bank something. The developments of recent years, however, show a serious change in this banking behavior. This raises only the question why are now full financing, so loans without equity completely in vogue and why the banks have changed your lending indicators?

A point for this willingness to change is certainly the economic constraint of the banks dar. Earlier scored the banking industry still with confidence and personal customer relation due to the bond with the bank consultant, who served the customer for decades of his life. Thus, globalization also found its way into the banking scene. Furthermore, the competitive structure has simply changed. In addition to the foreign banks, which wanted to build up a market in Germany and used the market entry barriers with correspondingly attractive financing offers for the customer acquisition, there were also a number of alternative types of financing, such as online platforms, for private money brokerage.

Numerous other pure Internet banks, which pass on their own cost advantage, due to a much smaller presence apparatus to coworkers on the spot, to their customers in the form of attractive financing elements, simply forced the German banking landscape to its knees and to rethink.

Mandatory prerequisites for lending a loan without equity

Mandatory prerequisites for lending a loan without equity

A sufficiently good credit rating of each customer is also fundamentally required when granting a loan without equity capital. A bad scoring of the information files does not fit into the picture of the German banks in lending.

In principle, customers who have an indefinite and secure employment contract can be considered for the award of a loan without equity capital. The income should be correspondingly high. Similarly, a clarified or intact family situation is a mandatory requirement. A full-funding credit applicant currently in an unfinished divorce will not be able to anticipate a positive decision on lending under these undeclared family circumstances, where the post-divorce payment obligations have yet to be determined.

Furthermore, a comprehensible and plausible calculation of the costs regarding the capital goods is inevitable. Age also plays a role in lending, in principle, young loan applicants in a full financing rather chances to obtain this full financing also, as a continuous and long planning security is assumed, compared to older applicants.

A second person, who secures the loan without equity is also urgently advisable, since banks still have a security drive. 2 People who hedge the loan are in doubt better than one who provides security for the bank. However, it is advisable to each customer in addition to a good calculation of the project, nevertheless, a nest egg, which can be used for unannounced incidental expenses.

Sample calculations

  Credit with equity financing
100%
Financing with 110% variant
purchase price 210 000 euros 210 000 euros 210 000 euros
Required loan amount 150 000 euros 210 000 euros 210 000 euros
equity height 60 000 euros 0 euros 0 euros
fixed interest rate 15 years 15 years 15 years
Initial repayment installment 2 percent 2 percent 2 percent
Borrowing rate pa 2.54 percent 3.54 percent 3.54 percent
Personal loan for the purchase costs 21000 Euro (about 10% of the purchase price)
Interest rate personal loan 5.99% pa
Monthly rate personal loan 177.10 euros
Interest costs Personal loan after 15 years 10 877.47 euros
result      
Rate per month 794.50 euros 969.50 euros 1 146.60 euros
Cost of interest after 15 years 38 635 euros 91 541 euros 103 418.57 euros
After 15 years is residual debt 45 625 euros 127 031 euros 127 031 euros
Total running time until full repayment 20 years 29 years 29 years

The interest rate on financing is significantly more cost-intensive when financing without equity.

For the 100% financing, the customer has to raise about 175.00 € / month more than the equity capital. With the so-called financing with the 110% variant the monthly costs are even with a plus of 352,00 € / month.

Also the interest costs are strongly differentiating. Total maturities are significantly higher than the equity capital loan.

Forms of the loan without equity

There are 2 relevant distinctions for loans without equity. One differentiates between the so-called 100% financing and the 110% financing.

For 100% financing, for example, only the purchase price is financed for a property. The additional costs of the purchase, such as the land transfer tax, is borne by the buyer. In the case of the 110% financing, the purchase price and the purchase costs are also financed by the full financing. The total equity can actually be here at € 0.00.

Possible pitfalls of loans without equity

Possible pitfalls of loans without equity

Customers who wish to settle for equity-free financing see themselves exposed to a higher risk of over-indebtedness in the general comparison. They pay significantly higher interest rates and get worse terms. Banks are compensated for their potential credit default risk accordingly.

In addition to the significantly higher interest rate, longer repayment periods and higher monthly burdens also threaten. The higher monthly charges over significantly longer terms compared to loans with equity must be weighed urgently by the interested party in advance.

What to do if bad Private credit / credit rating?

A bad scoring of the information files, such as the Private credit and a concomitant insufficient credit rating to obtain a loan without equity are knockout indicators. In principle, customers with these requirements must be provided with sufficient collateral, which can certainly be very high. Co-buyers with a very good credit rating and good revenue structures who secure the purchase and stick to the loan amount are decisive.

Another variant is the use of private money brokers or the use of foreign money houses, such as Swiss banks, as the lending is not bound to Private credit information.

Current figures and interest rate developments

In the current phase of low interest rates, it is well worth considering loans without equity to purchase home ownership or the like. Young people in particular, who have not had the time to save their own capital, can start investing in old-age provision very early on.

In recent years, the trend for loans without equity has been well established and enjoys a brisk crowd of children. However, considering the mostly poorer conditions of the banks compared to financing with equity capital must also be considered.