Small loans without checking account to satisfy all the needs of its customers

For some time Lender bank has been proving to be a financial institution that has not succumbed to the evolution of the times but has been able to satisfy all the needs of its customers, changing from the bureaucratic schemes of the past.
A clear example of this trend was the revisiting of its pay bank, a trend that continues with the special loans granted even to those who do not have a paycheck (in recent years the number of occasional or atypical workers has increased). The method to activate these loans is called Fine bank, and it goes through the pay bank card. Here are all the details about it and what guarantees are required.

Top-up plans, costs and interest rates

Top-up plans, costs and interest rates

Fine bank is a personal loan granted by Lender bank to those who already own pay bank or pay bank Evolution (which can also be managed online) and need immediate liquidity without the need to show a paycheck but other income documents.

It provides three top-up plans with credit immediately available on the applicant’s pay bank and with different repayment methods. The first floor considers a loan disbursed of 750 USD to be repaid in 15 months, the second provides 1.ooo USD returnable over a period of up to 20 months, the third provides 1,500 USD to be repaid in 24 months.

The refund can be made monthly or with postal slips sent free of charge to the applicant’s residence address, or with a RID to a bank account or Best bank account. Now let’s get to the costs. The latter consist of a fixed monthly fee (4.50 USD for those who apply for a 15-month loan, 6 USD for those with a 20-month loan, 9 USD for those who pay in 24 months) to which the tax must be added stamp duty on the first installment (16.00 USD) and the one-off stamp duty (2.00 USD).

As regards interest, however, they have a fixed TAN and APR of 18.21% for loans of $ 750, 16.51% for loans of $ 1,000 and finally 15.46% for loans of $ 1,500. . The total sums to be returned will thus amount to 835.50, 1,138 or 1734 USD respectively.

(For information relating to the applied by Lender bank we recommend visiting the official website www.poste.it)

Guarantees and requirements

Guarantees and requirements

One of the characteristics of Fine bank is that it falls under the unsecured loans when the loan is taken out. However, some requirements are necessary. First of all, you must be the owner of a pay bank or a pay bank Evolution (nominative or rechargeable) and be between 18 and 70 years of age when making the request. Secondly, even if you do not have a paycheck, you need to show a document certifying your income (applies to project workers, self-employed workers, seasonal workers and so on).

To these requirements it will be necessary to add the presentation of some documents such as the valid identity card and the health card or fiscal code. Foreign citizens will also be able to apply for Fine bank funding. For them it will be necessary to have a pay bank and to show documentation that can certify that you have resided in Italy for at least 12 months if you are an employee or 36 months if you are self-employed.

In addition, it will be necessary to show a still valid passport and permit or residence card, in addition to showing that you have been working continuously for at least 12 months at the same company, institution, etc. For all the more detailed information you can consult the Lender bank website.

 

Amortization of a loan: linear, declining balance, we explain everything to you!

As everyone knows, taking out a loan means borrowing from a credit institution a certain amount made available, the “capital”, which will then be reimbursed via a defined number of payments periodicals: the “deadlines”.

Declining balance, straight-line, reimbursement in fine… Among the many existing formulas, how to find your way around? Find out the differences and the exact terms of each type of credit amortization.

What is amortization of a loan?

What is amortization of a loan?

A loan is said to be “amortizable” when its maturities include a part dedicated to the repayment of the capital borrowed (the amount actually loaned by your banker) and a part allocated to that of the interest calculated on the capital remaining due by the borrower. “Credit amortization” is then the progressive repayment, on each due date, of the capital borrowed.

When the reimbursement is made monthly, which is the most frequent case, we speak of “monthly payments”. If the reimbursement is annual, then these are “annuities”.

Good to know : a due date is made up of capital and interest, but also of the borrower insurance contribution that may have been taken out. In the majority of the amortization tables which accompany a credit contract, there is then a maturity date excluding insurance and an insurance maturity term included. To find out the total cost of a credit with insurance, you should therefore turn to the corresponding column.

How to calculate the amortization of a loan?

How to calculate the amortization of a loan?

Considering the different types of amortization and the possibility of deferred repayment, it is not always easy to know where the payment of your loan is. It then becomes very useful to be able to refer to a depreciation table. Also called the installment schedule or repayment plan, an amortization table allows you to find out the share of the capital of the loan repaid and to calculate the amount of interest at each due date.

It also presents for each payment date the capital that would remain to be reimbursed to settle the loan in advance.

Calculating a amortization schedule can also be very useful in anticipation of taking out a loan. Taking into account various parameters such as the type and rate of borrower insurance associated with the loan or its duration, it presents the amount of each maturity, the share of capital, interest and insurance in the amount to be paid.

The total cost of interest and insurance on the entire loan also appears most often. It is therefore interesting to carry out several simulations to compare the amortization tables corresponding to several scenarios or even to visualize the consequences of a deferred repayment.

What are the types of amortization of a loan?

What are the types of amortization of a loan?

The proportion of interest and amortization of credit in a maturity varies over time, according to the offers of the lending organizations, but especially the method of amortization chosen by the borrower.

It is advisable to carefully select the amortization of a loan according to his personal situation, his heritage objectives, the type of credit made (mortgage, consumer credit, revolving credit…), the amount of the project, etc..

Amortization with constant maturities or progressive repayment of capital

This depreciation method is the most frequent. As the name suggests, it consists in repaying a credit via a certain number of installments, the amount of which is fixed. In other words, the borrower pays the same amount to his bank every month, from the beginning to the end of his repayment.

In the first installments, the interest repaid is higher than that of the principal. It decreases regularly while the share attributable to the repayment of capital increases.

In the event of redemption of a loan with fixed maturities, the preferred period is thus the first half of the life of the loan, when the interest paid is still substantial.

Constant amortization of capital or reimbursement on declining maturities

In the case of this type of amortization, also qualified as “linear”, it is no longer a question of paying the same amount at regular intervals throughout the duration of the loan but of repaying the same share of the capital borrowed each deadline. The interest being calculated in relation to the capital remaining due, their amount decreases with each due date.

The total sum to be paid each month, made up of a fixed part linked to the repayment of the capital and the part due to the interest, therefore decreases as the installments mature, hence the name “repayment with decreasing maturities”.

This depreciation method is very rarely offered to individuals and is intended more for businesses or local authorities. Indeed, it complicates the management of the monthly household budget.

Alternative depreciation possibilities

Depreciation at constant maturities and decreasing maturities is not the only possible method. It is for example possible to opt for a so-called modular amortization which, as its name suggests, allows the borrower to adjust his repayments according to the evolution of his budget.

The loan period may be reduced in the event of a large return of money or, on the contrary, increased in the event of financial difficulties. In connection, the monthly payment varies upwards or downwards.

Some banking establishments offer this possibility, for example, in all their home loan contracts: ask your bank advisor or a broker. Furthermore, such an addendum may be invoiced or be limited to a maximum number of operations per year.

Another alternative is to take out a loan in fine. This type of credit is strictly speaking depreciated. It provides in effect that the borrower pays all of the borrowed capital in one go, at the end of his loan.

Throughout the life of the loan, the customer will therefore only pay the interest generated by his credit, interest the amount of which will be the same at each due date since the capital due will remain constant throughout the loan. The total amount allocated to interest will therefore be higher than in the case of an amortized loan.

This type of loan is mainly used to finance real estate purchases for rental purposes. Including only the repayment of interest due to the credit, the maturities are shorter than those of an amortizable loan and they can moreover be deducted from the rental income of the borrower. In other words, the additional cost due to the interest on a loan in fine can be recovered for tax purposes.

On the other hand, it is generally necessary to provide solid guarantees, such as for example the pledge of a savings contract (life insurance, term account, etc.).

What is deferred depreciation?

What is deferred depreciation?

The term “deferred amortization” designates a period, most often at the start of the credit, during which the borrower is exempt from the payment of his loan. This type of device is most often proposed in the case of a purchase, the realization of works or the construction of a house.

Indeed, it allows for example to avoid future owners from having to simultaneously assume their rent and a loan.

In the case of a partial deferral of payment, the debtor is only exempt from the payment of the part due to the capital. He must still pay the interest and costs inherent in his loan (for example, borrower insurance). During the entire deferred period, interest is calculated on the entire borrowed capital. The total amount of the credit will therefore be greater than in the absence of deferral.

In the case of a deferred total repayment, it is the entire maturity of a credit, that is to say not only the part due to the capital borrowed but also that linked to interest, which is carried over. The borrower will not begin to pay his loan until after the scheduled period. Please note, however, that a total deferral does not exempt you from paying insurance related to a loan. This type of deferral is very costly: the interest accumulated over its entire duration is added to the borrowed capital and in turn generates interest. In other words, while the capital remaining due remains unchanged at the end of a deferred partial amortization, at the end of a total deferred it will be greater than the capital loaned initially.

Credit in fine This type of credit is strictly speaking depreciated. It provides in effect that the borrower pays all of the borrowed capital in one go, at the end of his loan. Throughout the life of the loan, the customer will therefore only pay the interest generated by his credit, interest the amount of which will be the same at each due date since the capital due will remain constant throughout the loan.

The total amount allocated to interest will therefore be higher than in the case of an amortized loan. This type of loan is mainly used to finance real estate purchases for rental purposes. Including only the repayment of interest due to the credit, the maturities are shorter than those of an amortizable loan and they can moreover be deducted from the rental income of the borrower.

In other words, the additional cost due to the interest on a loan in fine can be recovered for tax purposes.

How to choose the method of amortization of your credit?How to choose the method of amortization of your credit?

Choosing a progressive amortization loan offers unquestionable management facilities. The borrower will repay the same amount on each due date and will therefore be able to organize more easily.

In addition, the burden of the loan will be distributed equitably over the entire duration of the loan and the maturities at the start of the loan will be less onerous than in the case of constant amortization of the capital. If you want above all to distribute the financial effort attributable to your loan over time and not worry about anything during it, a loan with constant terms is the one for you.

For a loan of identical duration, the total cost of a loan with constant amortization of capital will be overall lower. Indeed, even if the maturities at the start of the loan will be heavier, it will make it possible to repay a larger share of the capital from the first years, which reduces the total interest generated by the loan since these are calculated from remaining capital.

However, there is very little chance that a banker will offer you a credit with decreasing maturities, in particular for a mortgage…

If you do not regularly look into the management of your credit does not put you off, the choice of a flexible amortization loan can then constitute an attractive alternative solution. Indeed, in addition to the comfort of being able to adapt the repayments according to your income, an upward modulation of the maturities will make it possible to increase the share of repaid capital and therefore to decrease the interest due calculated on the basis of this capital.

To go further: Get your amortization table to visualize the influence of the different components of your credit!

Subordinated loans – What changes compared to irredeemable loans?

In the category of debenture loans we find subordinated loans, which are generally used by small savers, who often find them without even knowing it within the life policies stipulated with banks. There are two characteristics that make them somewhat different from bond loans: the level of risk and the return. The investment risk is certainly greater, so if behind these subordinated loans there is an investment that turned out to be bankrupt, the loans will be paid only after the satisfaction of all the other creditors. On the other hand, they are more profitable with respect to bonds.

How do they work

How do they work

It is the banks that issue subordinated loans, but sometimes the foreign ones do so through life insurance policies (designed as “masked” insurance investments), which are certainly more risky. It may be interesting to evaluate the convenience of Cream Bank Loans. In order to avoid unpleasant surprises, it is always better to check that certain clauses are not hidden within your investments. If things go wrong, the saver is satisfied last, since precedence is given to all other creditors. If there is nothing left to attack the capital invested, it would be completely lost. Subordinated loans are mainly used by the major banking institutions to meet companies in the event of bad credit or to obtain liquid money more easily.

In order to be “regular” this type of loan must explicitly report the subordinate nature of the contract. It is also important that the terms of extension, the repayment of the principal, the interest rate and the duration are clear. See also how the Prestiamoci platform works.
We could well define them as “series b bonds” which justify the high return against a considerable risk.

Classification and difference from irredeemable loans

Classification and difference from irredeemable loans

Subordinated loans are classified according to their level of risk and return: Tier 1, Tier 2, Tier 3. Savers must put the advantages (given by the interest rate) and the risks of these loans on the “balance”. Since subordinated loans do not form part of the “irredeemable loans” as they participate in the losses of those who issued them only in the event of liquidation, their financial nature is therefore not unique.
The main differences are:

  • irredeemable loans cover the issuer’s losses even outside bankruptcy proceedings
  • unpaid loans unlike subordinated workers, remuneration is also provided in deferred form if the profits recorded by the issuer are not sufficient to honor when agreed.

Requirements

Requirements

Anyone over the age of majority and fully aware of the risks that this investment could entail can invest through the subordinated loan facility. There is however the possibility of obtaining substantial profits. 

Learn how to get rid of debt with 5 surefire tips!

Moments when we consider that the only solution for a given situation applies for a loan, payroll deductible credit or use the card and overdraft limit. But we also know that becoming a debtor does not make anyone happy. And what decisions like this can get us into a tremendous cold. Are they the great villains of loans and usually because of them, we end up indebted even more. However, h always a way out, and to get to Is she you need to learn from these 5 foolproof tips on how to get rid of doubts.

 

Step by step how to get rid of doubts

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According to the National Survey of Debt and Consumer Defaults, the percentage of indebted families rose to 63.3% in August 2014, as the default rate fell slightly in relation to the same period. last year. If your part of that reality, first of all, I need to make a diagnosis of your financial situation. To get rid of the doubts you will need to know how much it is owing, for whom, and the exact amount of the debt with and without interest. These details are fundamental when negotiating. 

 

Take responsibility for debt

In most debt cases, the debtor denies his situation and even hides from the family. This behavior extremely negative because it makes it difficult to solve the problem and limits your aid options. If no one knows you. should, no one can help you. Taking responsibility also helps not to get into debt again in the future.

 

Map your spending and discover your ability to pay

debt relief

Evaluate your income and expenses and find out how much to use to pay the debt.

In the case of larger debts, it is worth considering whether you are there any good that can be turned into quick cash to pay off your debts. Consider selling the car, for example.

 

Ask for help and negotiate

After the previous steps, maybe it is time to ask for guidance from a specialist or from a body like Across Lender Group to find a way to get rid of them together. of doubts. They will likely assess your situation and schedule a reconciliation meeting with a creditor representative. In most cases the pending is resolved and comes out much cheaper for those who owe. And in the case of Across Lender Group, is there a project called Linda Pome Online, whose main objective makes this negotiation quickly and totally over the internet.

 

Control your spending

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Once you’ve figured out how to get out of debt, stop spending unnecessarily. Cut out the very expensive ballads, those night outings that are above your budget, the restaurants, the superfluous in the market Stop using the credit card and save on expenses at home, such as water, electricity, etc. That strategy is crucial to make leftover something or at least not missing. Apply the 50-15-35 rule! Learning how to get out of debt can be a little tiring and exhausting, in addition to requiring to modify your routine a little by acquiring new habits such as: controlling and recording expenses, learning to use the credit card and prioritizing purchases thus avoiding the accumulation of installments. But the good news that it will be worth, after all, the tranquility that is up to date with finances, and without creditors around, represents greater than the effort to adapt new reality. 

Fintech loans: Understand what it is and its advantages

With the advancement of the digital age, several services and products have been facilitating the daily life and bringing advantages that, previously, were restricted to smaller groups.

Until recently, for example, loans could only be made at a banking institution, with many limitations and bureaucracies that excluded several people outside the system. Today, however, we can already count on loan fintechs!

Basically, these are companies or startups that provide services that, a few years ago, were made only by the financial market – by brokers and banks. Becoming better known only in 2015, they are already considered an innovation in the capital market.

But, after all, do you know how a loan fintech works? In this post, we will take all your doubts and mention the main advantages of having this type of service. Follow and check it out!

What is a loan fintech and how does it work?

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We can define a fintech as an organization that makes use of technology to offer products in the financial area through innovative methods, offering a differentiated and unique experience for its customers.

It works like a classic startup – that is, mainly in the virtual environment – and has the customer as the focus of its business strategy. The user contacts her, stays on top of loan plans and, most importantly, realizes that her interest rates are much lower than those offered in traditional bank loans. Often, it is not even necessary to offer guarantees to close the deal!

It is through formal banking investment that fintechs develop. In other words, they use common credit and ensure business risk through artificial intelligence mechanisms, which perform the risk calculation of this credit offer.

What are the advantages of borrowing money from this type of company?

What are the advantages of borrowing money from this type of company?

In fact, there are countless advantages to borrowing money with a loan fintech. Let us see below the main ones.

Data technology and information security

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In the face of so many technological advances today, information security systems are constantly being developed and improved, so that our exposure to others is reduced and our valuable data is preserved. In this sense, fintechs are known precisely for providing security of access to the client’s platform – especially because, when talking about financial operations, security is essential, right?

The system used by a loan fintech requires the use of confidential credentials (username and password) to view the data of a person or company. In addition, there are other security measures offered by these companies. Among them, we can highlight:

  • if there is a default by the employee, the company should not be able to afford it, since it is only an “intermediary” between the financial institution and the employee;
  • end-to-end security – this protects your customers from the risks of attacks and leaks;
  • security in approval – the organization only needs to fill in the online registration and the agreement will be made according to the characteristics of the business, that is, without the need to use resources and/or human material to offer the credit option to its employees.

Loan for legal entities: How to choose the best?

Corporate credit lines are fundamental elements in expanding and sustaining business. Regardless of the size of the company, some factors – such as tax expenses, employee payments, and other charges – end up hindering its financial flow. Therefore, it is precisely at that moment that the loan for legal entities can be a differential in the success of your finances.

Decides to apply for a loan

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Currently, there are several financial products on the market aimed at the business public. However, choosing the best option is not usually a simple task. From the moment the manager decides to apply for a loan, it is important to be aware of the conditions offered by the financial institution.

In this post, we will show you how to choose the best corporate loan and what criteria should be evaluated before borrowing money from the bank. Good reading!

In what situations can the loan be used?

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Due to the complexity of the market and the payment of high-interest rates, the loan should only be requested when the company really needs it. This is because, when hiring this type of service, you can compromise your billing for a certain time. But, after all, in what situations can the loan be used?

Loans for legal entities can be used for various purposes. Generally, the situations that require this alternative are the payment of dividends, the settlement of accounts payable, the acquisition of assets and rights, and working capital, among others.

Thus, they are fundamental for the company not to be in the red, in addition to being able to expand or finance its daily activities.

However, loan options vary depending on the bank, which requires some essential requirements. So it is important to research well before closing a contract.

How to choose the best loan option for companies?

How to choose the best loan option for companies?

Most companies, at some point, need the help of some financial resource – whether to honor commitments, expand business or purchase equipment.

Just as banks offer different types of loans to individuals, companies also have a series of credit lines. However, it is necessary to analyze the different aspects in order to understand if this is really the best alternative.

In the corporate world, raising capital is quite common, especially since banks often make specific lines of credit available to companies.

However, borrowing money to finance working capital is only worthwhile if the profit projection is favorable. Otherwise, the accumulation of debt can cause your business to close

Next, check out how to choose the best corporate loan option and what factors should be evaluated.

Requirements and conditions for applicants and lenders

Among the most interesting innovations of the network in recent years there is certainly the phenomenon of social lending platforms, that is, the loan obtained through social networks between private individuals. One of these, very well known, is Lender Bank. It is a payment institution, authorized by the Bank of Italy and constantly monitored, which puts loan applicants in contact with lenders, after carefully evaluating the characteristics and reliability of each other.

Here’s how it works and why this type of online private loan is worthwhile.

For lenders the convenience is in transparency and interests

For lenders the convenience is in transparency and interests

First of all it is necessary to analyze the two different figures: that of the lender and that of the applicant. For the lender there is the possibility to choose the return on the sum lent, the duration of the loan and the risk ratio: you register on the platform, load the money and the sum will be immediately available. The security consists in the fact that the amount that is made available to lenders never comes from a single person, but always to more applicants.

Every month, when the applicant pays the installment, the lender’s account on Smartika increases, also including the interest charged. From this point of view, for those looking for a different form of investment, the reviews are positive.

For applicants low rates and fast request

For applicants low rates and fast request

As regards applicants, on the other hand, they must meet certain requirements, such as an easily verifiable identity, a demonstrable income (no matter if it derives from subordinate, self-employed or atypical work) and a bank or post office account. Furthermore, the applicant must be aged between 18 and 75 and must be resident in Italy.

Once these requirements are met, the actual request can be made, using the simulator on the website. Taking an example of a 5,000 dollar loan request, if you choose to repay it in 36 months without taking out insurance, the installment will amount from $ 151.64 to $ 159.54 USD, with a 6.0% Taeg per 9.6% and a total to be returned from $ 5,531.20 to $ 5,815.59, also including collection costs, Lender bank contribution and commissions.