To reschedule credit during the term

Financing here, fixed credit there: in our day and age it is not uncommon for us to go into debt and let new purchases enter our lives with the help of a loan. Often it is not properly looked at the conditions at which the loan or financing is actually taken out. The big awakening usually comes only when it comes to paying the debts and it is found that a large part of the monthly installments are devoured by the interest. Then it is high time to think about repaying a loan during the term.

When a loan can make sense during the term

When a loan can make sense during the term

Those who are knee-deep in the overdraft facility, have to use creditors on the right and left and groan the credit card under the accumulated expenses, for which it is high time to think about a loan during the term. It is not uncommon for such a scenario to result in over-indebtedness, which is often only a few steps away.

But even if you have a fairly large loan that you have been repaying for several years and that will continue to accompany you for years to come, it can still be worth thinking about rescheduling. For example, if you have taken out a real estate loan or a car loan.

The conditions for debt restructuring are therefore very diverse and should always be considered individually. In general, however, it can be said that a loan is worthwhile during the term of debt rescheduling if you feel financial relief from the debt rescheduling. Be it because the monthly installments become lower due to a longer term, because you can combine several creditors into one creditor or because you simply find an offer that is equipped with a cheaper effective annual interest rate. It is not critical that a bank offers you debt rescheduling. You can also search for a better loan offer yourself and take debt restructuring into your own hands. You usually drive even better with this approach, because you can choose the new loan and conditions yourself and do not have to trust that the bank will make a lucrative offer for you.

It is not without preliminary considerations

It is not without preliminary considerations

Before you actually reschedule your existing loan, you should make some preliminary considerations and make preparations so that the debt rescheduling can be carried out without any problems. After all, you want to save and relieve debt with debt restructuring. And this will only happen if you take a very targeted approach.

Therefore, first check what the current remaining debt is. If necessary, you should contact the current donor or existing creditors to find out the exact figures. In this context, also find out whether the bank is demanding compensation for the early repayment of the old loan. If so, you have to offset this compensation against the savings in order to find out what real savings will actually result from the debt rescheduling.

Once this has been clarified, you can obtain current offers for a new loan. It is not important that the loan is in debt during the term. Orientate yourself with the required loan amount based on the outstanding amount of the old loan. If additional liabilities have accumulated, these could also be included in the new loan amount in order to leave only one creditor in the end.

If you have found a suitable offer, you should present it to the old bank. They can then consider whether they want to make you a similarly good offer or whether they release you from the loan. Banks often want to keep their customers because they earn good money from them. So it may well be that the old bank offers you a similarly good or even better offer for a loan during the term. If this is not the case, you can terminate the contract as soon as you have the money from the new loan in your hands.

Please consider the following

Record only the amount of credit that you really need. The new bank will certainly try to artificially drive up the loan amount. In addition, think very carefully about whether you really need residual debt insurance. This is only necessary if you call a very large loan in combination with a long term your own and want to protect your family and last but not least yourself with the residual debt insurance.

Overdraft facility credit | Get it quickly

 

Financially, it can get a little bit tight for everyone. Even if there is a good income, there will always be situations in life in which more money is needed than is actually available. This usually happens when unannounced expenses become necessary. For example, when a repair is due or an investment in the future is to be made.

If the additional capital is only needed for a short time, the overdraft facility can be used, which connects to the checking account and is available as a call credit. If a little money is needed, this can simply be obtained from the overdraft facility without having to apply for an additional loan. This makes a spontaneous decision possible.

However, the use of the MRP also has some disadvantages. The effective interest rate for the overdraft facility is very high and therefore also strains the available budget. Between 10 and 13 percent of the used disposable must be planned for this. If you then fail to quickly compensate for the overdraft facility, you pay a lot of money for the convenience that you enjoyed in advance. Therefore, many consumers choose to take out overdraft facility loans in the event of a long financial shortage.

Inexpensive and quickly taken up – the installment loan

Inexpensive and quickly taken up - the installment loan

An installment loan is best suited for settlement as a loan for overdraft settlement. The installment loan can be adjusted exactly to the required loan amount, has no upper limit and is also not earmarked. You do not have to tell the lender what you want to use the money from the loan for. However, if you need to borrow a large amount, the question of how to use it can come up anyway. Here you should make a vague statement and not be too “questioned”. Banks do not like to spend money to give the borrower the opportunity to settle debts. Therefore, try to name another purpose or to leave the question open. Not that you get the impression that you are not creditworthy.

You already get a credit for overdraft facility compensation in the form of an installment loan on very good terms. If you have a good credit rating, it may well happen that the effective interest rate is below 3 percent. In order to be able to make such a bargain, you should compare different offers with the help of a comparison calculator. We also recommend that you do not take out the overdraft facility loan from your house bank, since you are very likely to use the overdraft facility and the house bank could take advantage of your “emergency situation”. It will most likely not make a good loan offer to you since it has little interest in making up for your overdraft facility. After all, it earns well from the interest you have to pay every month. And the installment loan goes hand in hand with a significantly lower interest rate.

Pay attention to flexibility

Pay attention to flexibility

If you decide to use a credit to offset the overdraft facility, you should always ensure that you have sufficient flexibility in repayment. Even if it is very likely that it will only be a small loan that you have to apply for as a credit for the overdraft facility, it is important that you keep as many options for repayment as possible.

It is always very nice if you can make free special repayments. These allow you to flow additional money into the loan. As a result, you can pay off the loan faster and pay less interest.

If you are moving in the context of a small loan, you should not let any residual debt insurance pamper you. Better find a guarantor who can help you if necessary. A residual debt insurance only costs a lot of money and makes your loan unnecessarily expensive.

Also make sure that you do not use the overdraft facility again during the repayment from the credit to the overdraft facility and if possible do not incur any other debts. It is better to clear the current debts first before increasing the existing ones, so as not to end up in overindebtedness. In that case, there will be no credit to help you get out of this predicament.

Pregnant women opt for a loan during pregnancy

Pregnancy is a harbinger of the birth of a child, who is usually eagerly awaited with much joy and excitement. Children represent our future and bring a lot of variety and responsibility to our lives. But those who have children also know that they are very expensive. Especially the first years of life have a lot of impact, because the children grow very quickly during this time and, above all, many things have to be bought from first-born babies, such as a cot, the stroller and a suitable car seat. For parents-to-be, this means that they have to take a lot of money into their hands during pregnancy in order to be able to give the newcomer a proper reception.

Since parents-to-be are usually young couples who have not yet saved a lot of money, the acquisition of all the necessary things is often a financial tightrope walk. Money is lacking everywhere and time is short. Therefore, many pregnant women opt for a loan during pregnancy. This can be used in different forms, but it demands a lot of responsibility from the borrower.

Some preliminary considerations about pregnancy credit

Some preliminary considerations about pregnancy credit

Pregnancy is a very important time in the life of every woman. New life arises in your own body, which has to be looked after particularly intensively and lovingly.

In addition, pregnancy always means leaving the job. Even though in many cases this retirement only takes place over a certain period of time, it also means that the financial situation also changes. The salary ceases and is replaced by the parental allowance, which is only 65 percent of the last net salary. In addition, no one can predict when entry into work will be successful. Even if you have set yourself the goal of fully returning to work after parental leave, no one knows in advance how the child will develop and whether its “condition” allows you to quickly return to work.

All of these factors should be considered before taking out a loan during pregnancy, as they make a significant contribution to whether the borrowing and, above all, the repayment of the loan works as you would imagine.

Small loan amount combined with small monthly installments

Since financial security is already very uncertain during pregnancy, any pregnant woman with a loan during pregnancy should always be limited to a small loan amount, which can be repaid in small installments even if the monthly income is no longer available. The financial burden with a child is so great that large additional expenses are hardly possible in the first years. Therefore, small loans with a long term on a loan during pregnancy are always the best choice.

If the pregnant woman would like to take out the loan on her own, the bank could interfere with the pregnancy. Because every bank employee knows that a mother will not go to work after giving birth, and that income, which is considered to be security, will therefore be lost for the time being. In order not to risk rejection, the loan should therefore not be taken out in a branch of a bank, but online via the Internet. The Internet does not recognize whether someone is pregnant and therefore cannot pass this information on to the bank. As a borrower, however, you can ensure that pregnancy cannot be a reason for refusing the loan during pregnancy.

Consumer credit as an alternative

Consumer credit as an alternative

If there are difficulties with taking out a classic installment loan despite all of this, a consumer loan can be the right choice for a loan during pregnancy. It is offered by dealers of all kinds and is earmarked. By being tied to a specific purpose, income is no longer important as security. Although the retailers also demand certain income per month, these only have to be over 450 USD and are not tied to permanent employment or the like.

Social benefits such as parental allowance are also considered income and are accepted for consumer credit. With the help of the consumer loan, all those things can be bought that are needed for the baby or the expectant mother. As with an installment loan, the debt can also be paid in small monthly installments. The effective interest rate is very pleasant and therefore does not make the loan more expensive. Additional collateral is usually not required since the financed goods are sufficient as collateral.

 How much credit can I afford? How much do i get?

These questions often concern loan seekers. It is a fact that the money required for whatever – either ultimately does not exist or cannot or should not be made liquid – and must be borrowed. It is also clear that the money will have to be repaid sooner or later – usually through monthly installments plus interest.

It can be deduced from this that these installments are paid for several months to many years each month depending on the amount of the loan and must in any case be available. If you now have a loan in mind, it is important to honestly and precisely analyze your individual financial situation and perspective. This should be done in writing and should not be overlooked.

How much credit do I get with which income?

How much credit do I get with which income?

Ultimately, it is not the regular income that is important when determining the monthly financial resources available, but the monthly amount available after deducting all regular expenses. And this sum should ideally also be generously reduced again in order to be able to comfortably manage necessary expenses out of line (e.g. new refrigerator or car repair) and not to be dependent on a next loan. Read our borrowing tips.

Consumer credit

Consumer credit

Small loans, mostly in the four-digit USD range, which private individuals need for purchases such as electronics or a used car purchase, are usually granted to employees with regular income (provided they are no longer in the trial period), easily and without complications. Even large amounts can be lent out through long terms with low monthly installments. It should be noted, however, that with longer terms, the interest payments are also correspondingly higher, since the reported interest is due per year and not once on the entire loan amount.

Our overview shows you an exemplary calculation for the monthly installments in USD for a loan amount of 10,000 USD. Credit costs (e.g. fees or insurance), delayed rate starts, etc. are not taken into account.

12 months 842.31 846.75 851.17 855.57 859.93 864.28 868.59          
24 Months 425.32 429.63 433.93 438.22 442.49 446.75 451.00          
36 months 286.35 290.63 294.92 299.21 303.50 307.79 312.08          
48 months 216.87 221.16 225.47 229.79 234.12 238.47 242.82          
60 months 175.20 179.51 183.84 188.20 192.59 197.00 201.43          
72 months 147.42 151.76 156.13 160.53 164.98 169.46 173.97          

Real estate loan

Real estate loan

The situation is completely different with a real estate loan, for example for buying a house or building a house. Since these are considerable amounts, the cost of the calculation and the inclusion is of course higher. However, the bank has crucial security for the proper repayment of the loan: the property to be financed. In addition, real estate financing is a life thing that you usually only do once.

To determine the maximum purchase or construction sum, the maximum financial feasibility must be calculated. This amount results from the available equity and the maximum loan amount that a bank would grant.

The amount available for real estate financing can be calculated using the following formula:

equity
+
monthly rate x 12 x 100
______________________________
Interest rate in% + repayment in%

The value determined in this way is the total amount available for the construction or purchase project. This also includes all additional costs, such as notary fees, real estate transfer tax and costs for architects, interior fittings and the like.

Are there any banks that give zero interest home loan?

Banks are commercial institutions and they are for profit. Therefore, they normally do not grant interest-free housing loans, but consumers may have the opportunity to use interest-free loans under some projects or campaigns. Since these campaigns and projects are not provided by the banks, it cannot be said that banks give interest-free housing loans, but below will be mentioned how to buy housing with zero interest.

The interest-free mortgage loans that are created usually occur when the interest burden is covered by the construction companies and the bank provides the consumer with the main money required to purchase the house in question. This may seem complicated, but it does not mean anything other than the construction company handing over a portion of its receivables to the bank.

Interest-Free Housing Loan

Real estate associations, which came together last year and made a statement that mortgage loan rates should be lowered, announced their decision to end bank dominance in the sector and announced that interest-free housing loans could be provided to consumers in this context.

They were made to deal with again some bank branches for some construction projects within the campaign prepared with the cooperation and this project consumers who want to buy housing, which included up to 60 months if they make an advance payment of 10% has been announced can be given interest-free housing loans.

In the same meeting, in addition to the breakthrough on interest-free housing loans, housing loans with very low interest rates and up to 20 years of maturity were also mentioned. In this context, associations stated that they have undertaken various initiatives and announced that financing can be allocated with up to 20 years of maturity, with interest rates of 0.45% and 0.75% in the future.

So How to Buy Housing with Zero Interest?

So How to Buy Housing with Zero Interest?

In fact, the system is a fairly simple and sustainable set of procedures. Namely, after deciding on the house to be purchased, a down payment of 10% of the total value of the house should be made and financing should be allocated from the bank for housing. The bank will be deemed to have purchased all the rights of the consumer house, which will make the financing payment directly to the construction company. To explain the procedures step by step:

  1. Among the housing projects organized, the house to be purchased is decided.
  2. The authorized bank branch is contacted for financing the house in question and a contract is requested.
  3. The bank prepares the contract and requests a 10% down payment to meet with the construction company to process the sale of the dwelling.
  4. Financing is allocated based on the deposit and blocking of 10% down payment into the bank account to be opened and the house is purchased.
  5. The consumer begins to pay the loan with zero interest, which can be paid in installments up to 60 months.

How to buy an interest-free house without any down payment

How to buy an interest-free house without any down payment

The banks that signed a protocol in order to enable consumers to use zero-interest housing loans were announced.

If consumers have a request in this direction, the amount of down payment can be increased and the remaining amount can be paid in the long term without interest. This method is preferred by consumers who want to reduce the amount of installments.

In addition, another new and alternative interest-free home purchase method is the Real Estate Certificate Purchase, and you can reach our department where we share detailed information on this matter.

Credit Application to banks and non-bank institutions

Banks, which is among the banks with public capital, is among the banks that consumers can apply for all kinds of credit needs. Banks, which has been offering attractive opportunities to consumers for various loan products for years, is also frequently used for agriculture and livestock loans.

 

The loan requests submitted to banks, which creates alternative channels for loan application in order to divide the density in its branches into various service channels, are evaluated and concluded in a very short time.

Regardless of whether a positive or negative response is received, all of the loan applications made without going to the branch are preliminary and it is obligatory to go to the branch for allocation accordingly.

Bank Loans

Bank Loans

Consumer loan, vehicle loan, mortgage loan, education loan, agricultural loan, livestock loan, school loan, etc. via banks. it is possible to submit applications to all retail loans. The proforma invoice of consumers who will request for special loans. It is not possible to submit a loan application on the internet or through a different channel, as it must submit. Bank branches are the only service channel available to consumers in this situation.

Credit Application Without Going to bank

Credit Application Without Going to bank

Consumers who want to submit a loan application to Bank do not have to go to the branch. Loan requests can be made via internet, telephone, SMS or ATMs.

Credit Application by Message

CREDIT spaces to exploit consumers need credit products that you want to forward loan applications can write and send a text message via SMS identification information of accounts. The loan application made will be evaluated within a very short time and the maximum loan that can be given to the person will be answered by message. If the loan amount desired to be used is covered by the amount transmitted by the bank, the allocation process can be completed by going to any Bank branch.

Online Loan Application

Consumers logging onto website can access the application form by choosing any of the loans under the Products tab. The loan application submitted will be finalized within 24 hours at the latest and sent to the consumer via text message.

Credit Application From ATM

Bank has replaced almost all of its ATMs with current versions as part of the reform efforts it has initiated in recent years, and has allowed consumers to apply for loans from ATMs. For consumers who want to submit their loan applications through Bank ATMs, all they need to do is to go to any Bank ATM and follow the steps of Login> Application> Credit.

The loan application made is a pre-application and even if Bank is a customer, it is necessary to go to the branch and complete the allocation process.

Telephone Credit Application

Consumers calling the Bank call center can submit a loan application through the voice response system. The submitted loan application is a pre-application and it is necessary to go to the branch in order to complete the allocation process.

Required documents

Required documents

When consumers apply for a loan:

  • Birth certificate,
  • Income certificate,
  • They must present documents such as residence or invoice.

Consumers who will use vehicle loans must present a license copy of the vehicle to be purchased, and consumers who will use a housing loan must additionally submit a copy of the title deed or land easement of the house to be purchased.

If you are looking for a bank that evaluates the loan application online and allocates loans accordingly, without prior approval; take out a loan from us