Author Archives: George Crump

What Is Screening And What Does A Borrower Need To Know About It?

 

At present, it is impossible to meet a person who did not use the Internet, which makes life much easier. According to statistics in social networks alone, today, almost 80% of all inhabitants of the earth are registered. Our fellow citizens are not far behind these statistics and are very actively using various kinds of Internet resources, telling their friends and relatives with their help about everything that is happening to them.

Meanwhile, not only acquaintances, but also financial institutions may be interested in such information if this person turns to them for a bank loan. Certainly, many are now surprised, but this practice actually takes place, of course, it is used as an auxiliary analysis of the client’s solvency and does not have a significant impact on the final verdict, but this point nevertheless deserves special attention.

Screening as a method of working a financial institution with an applicant

 

Screening as a method of working a financial institution with an applicant

Currently, the global network is not a simple means of receiving and transmitting all kinds of information – the Internet is a huge resource that provides an opportunity to get acquainted with one person or another that is called in absentia. In essence, it is precisely because of this that banking screening appeared, which provides financial institutions with the opportunity to verify the solvency and integrity of potential borrowers.

Read on: How is the check of the borrower of MFIs on social networks?

So, having studied the applicant’s page in social networks in detail, the bank can get information not only about his workplace, study or marital status, but also what valuable property is in the property of the applicant for a loan. You must agree, often buying a new car or other expensive property, we hasten to boast a new acquisition to friends, while social networks allow you to make this process as quick as possible.

Also, by studying a page in a social network, a bank can learn about the financial situation of a potential borrower, for example, by noting photographs from foreign trips that will indicate a person’s ability to allocate decent money for travel. Specialists of the banking organization carefully process all the photos and other information about the applicant for a loan, thereby making up the “portrait” of the client. A bank specialist can get a rough idea of ​​the level of solvency of a potential borrower using data posted on social networks.

Read on: How is the solvency of the borrower assessed by banks ?

However, this technique cannot be called perfect and it is not always effective, which the banks themselves perfectly understand. You must agree, many people create accounts in social networks, which represent only a projection of who this user wants to be in real life. For example, it cannot be excluded that an old woman or even a man is hiding behind a pretty smile of a young and attractive girl. In addition, some people do not like to parade their own lives and social networks are used exclusively for communication.

At present, few banks use screening for client analysis, usually young financial institutions resort to such a scheme, but this practice still exists, although it is difficult to talk about its effectiveness.

 

Expert opinion on screening effectiveness

 

Expert opinion on screening effectiveness

Some financial experts argue that screening is used to analyze potential borrowers to a greater extent with the goal of verifying a real client with a virtual object. As a rule, information relating to the age of the applicant and his marital status is compared. Also, attention can be paid to the formation of a potential client and his place of work, which are also often mentioned in social networks.

There are quite a few financial experts who argue that such a test is ineffective, and therefore it has no promising future. Moreover, this method began to be used seven years ago, however, even for such a long period, he did not have time to gain the trust of financial institutions, and therefore does not have much distribution today.

 

Such verification of the applicant for a loan is used only with certain credit programs. In addition, it should be understood that no bank will count on such a check, therefore, it will not be possible to avoid an ordinary bank check in any case. Screening is only an auxiliary tool for a banking specialist in assessing the solvency of the applicant for a loan.

 

Loans eligible for consolidation

Loan consolidation is a financial solution to consolidate multiple loans into one. You collect your disparate monthly payments in one, which gives you a better control of your budget. It is also the way to review the duration of your loans, to benefit from new rates and new monthly payments. Learn more at http://sonotheque.net

The repurchase of loan (or regrouping of loans) makes it possible to group several types of loans. The goal is to restructure its debts, this solution is particularly suitable for long-term loans or whose interest rates are high.

Consolidation of mortgage

The purchase of real estate loan (or pooling of loans) is a frequently used solution. A home loan is indeed a large and long-term expense item in a family’s budget. For old loans, the purchase of loan is an opportunity to benefit from lower rates to reduce the overall cost of its loan. Changes and stages of life (birth, move, separation …), but also new projects in fact sometimes involve reviewing its needs and repayment capabilities.

Auto loan buyback

The automobile is another major expense item in a household. The repurchase of auto loan (or group of loans) makes it possible to lighten its monthly budget by spreading its loans to reduce its monthly payments. It also makes it possible to release new savings capacities for future projects.

Buyback of consumer loan

The purchase of consumer loan (or pool of loans) is a good tool to clean up and simplify its budget. You thus collect in a single loan all the small loans often cumulated over the years to finance your marriage, the purchase of your household appliances or your furniture. You then have only one loan with a single rate to repay each month.

Consolidation of other types of loans

Consolidation of other types of loans

You can also group other loans . The repurchase of loan (or pool of loans) is thus often relevant for revolving loans, whose rates can be high. On the other hand, it is not always relevant or possible to buy a zero interest eco-loan.

Simulate your loan consolidation (or pooling of loans)

Now that you know a little more about loan consolidation (or pooling of loans), do a simulation to evaluate the amount of your new monthly payments. A counselor will then help you in the formalities to build the file.

Compare home loan conditions online

 

Using a home loan comparison, you can conveniently and easily find the cheapest deals on such loans that you need for home construction. In particular, on the Internet is a good way to have a house loan to calculate to find out what conditions this is affected.

A home loan comparison offers many advantages – especially in terms of the costs to be borne

A home loan comparison offers many advantages - especially in terms of the costs to be borne

Many people dream of their own home, but do not have enough equity to finance it completely on their own. In such a case, the home loan comes into play, which is offered by numerous banks. But to find such a loan, you have to spend a lot of time analyzing each offer individually. Therefore, a home loan comparison is highly recommended, which promises full transparency in terms of the costs to be borne by the respective offers. Calculating a home loan online is very straightforward thanks to numerous comparison tools provided by independent portals. Initially, no personal details are given, but first the loan amount, the desired repayment term and the priorities that are important for such loans specified.

The financing process for a home loan is as straightforward as the comparison

Once you have found a suitable offer, the next step is to contact the respective bank. During a consultation, the personal financial situation and the construction project are explained in more detail. Depending on the creditworthiness, the bank then decides what conditions the borrower can expect. Mostly collateral must be provided in the form of a life insurance or a guarantor. This is easier if there are two credit applicants. After the documents have been compiled, the acceptance of the financing offer takes place. Following this, either the entire loan amount that is covered by the home loan or even only part of it can be paid out. Often, the first installment only expires after a few months, allowing the borrower to fully focus on the construction project.

 

Loans: special arrangements for annuity credit

Many people dream of their own homes. However, most can not afford this out of pocket or with self-saved reserves – real estate financing with external finance is often essential.

These external funds are provided by banks or insurances through construction funds. However, there is probably the most popular alternative, is to get a real estate loan from a bank. There are basically three major types of loans: the term loan , the installment loan , and the annuity loan , better known as annuity loans.

Possibility of financing the home through bank loans

Possibility of financing the home through bank loans

The annuity loan has the great advantage that you have to pay a monthly agreed repayment amount, which consists of the repayment itself and the loan interest. Especially in real estate financing, this fixed basis for calculation is worth gold, as you usually have to bear additional costs when building or buying a house – for example, buying furniture.

Amongst other things, loans are characterized by the fact that they have a fixed term – in real estate financing usually several decades – and a contractually agreed interest rate.

Fixed interest has advantages and disadvantages

The fixed rate mortgage interest rate has both positive and negative aspects for the borrower. In times of high interest rates on the capital market, the borrower profits from his (here: lower) fixed interest rate, if this is below the general (here: high) market interest rate, since the interest rate can not also slide upwards and thus the interest payable increases would. The fixed interest rate is thus an advantage of the borrower.

On the other hand, the market interest rate can also develop quickly in opposite directions. If interest rates on the capital market fall and interest rates in the loan market for borrowers are favorable, then borrowers with an already fixed interest rate will remain stuck at the higher interest rates. Here is a fixed interest rate disadvantage for the borrower.

Secure low interest rate for the future

Secure low interest rate for the future

In principle, it is now possible to take advantage of the low market interest rates with a loan. With a loan, you can now contractually set an interest rate that you want to use for the future. For example, if you want to restructure your existing credit agreement to a cheaper bank, you can set a currently low interest rate on this and reserve for debt restructuring – even if the rescheduling is to take place in one year. The Loan thus allows you to benefit from today’s low interest rates in the future as well.

 

Features of Subsidized Lending

 

In the conditions of the current economic state, state assistance to creditors has become a necessity to keep turnover in the domestic market. However, the subsidy program is not available for all categories of credit, but only for industries that need support the most. Let’s talk about the conditions of a subsidized loan in 2017.

 

What is a subsidized loan?

 

Subsidized loan – credit relations that have three direct participants: the lender (natural and legal person), the lender (bank) and necessarily the state, which acts as the party providing the subsidy.

 

Reflection in law.

 

Reflection in law.

 

The possibility of granting a subsidized loan to individuals and legal entities, as well as the conditions for subsidizing are reflected in the Decree of the Government of the Russian Federation dated December 28, 2012 No. 1460.

 

Under what conditions.

 

Under what conditions.

Subsidized loans are subject to the following conditions:

  1. The need for credit for the development of the organization or the purchase of goods in one of the most unstable markets. These include mortgage, car loans and loans for the development of agribusiness, the acquisition of agricultural technology.
  2. Contacting one of the banks that cooperates with the state subsidy program (Sberbank, Gazprombank and other large Russian banks).
  3. The ability to pay loan payments, confirmed by income certificates.

The terms of the subsidized loan are fixed at the state level, however each bank can make its own small amendments. For example, the conditions for government subsidies in 2017 are as follows:

  1. The minimum loan rate on the Russian market, which may differ depending on the purpose of lending.
  2. Fixed throughout the entire loan period the loan rate and the amount of payments without the possibility of making changes.
  3. Loan term of 5 years.
  4. The inability of the bank to pay the subsidized loan ahead of schedule, provided that the borrower complies with all the conditions of the loan agreement.
  5. Subject to bankruptcy, the debt on the subsidized loan is paid after the full payment of all other debts.

The lender can influence the terms of the contract on such factors as the term of the loan and the interest rate.

Lending period, each bank is entitled to designate its own, but not exceeding the state limit, in the case of subsidized lending. As a rule, a subsidized loan is issued for no more than 5-10 years.

The size of the loan rate over the entire loan period remains unchanged. However, due to compulsory life insurance and property insurance, as well as other payments stipulated by the terms of the contract, the preferential loan rate may increase by up to a few percent, so when signing a loan agreement you need to pay special attention to its conditions.

Thus, with a subsidized loan, the lender remains at the same interest rate on the loan and the amount of payments throughout the entire period of payment, and the state compensates for all expenses due to a change in the market situation. Today, the interest rate of Russian banks is on average several percent higher than the one offered by the state under the subsidized program, so the conditions presented are quite beneficial for both individuals and legal entities.

 

Line of offers.

 

Line of offers.

 

The state offers the service of receiving preferential subsidies both to legal entities and individuals. Today, taking a loan at a subsidized rate is possible for the following purposes:

1. Mortgage – the purchase of an apartment in installments. Subsidized mortgages are issued on the following terms:

  • Lenders pay the first installment of 20% of the cost of housing.
  • Loan rate – 12% per annum without additional payments, if such are provided by the bank.
  • The cost of an apartment is not more than 8 million rubles, that is, housing should be economy class.
  • The apartment is purchased in the primary real estate market – from the developer, but can be purchased at any of the stages of construction.

It should also be noted that the program on which a subsidized home loan is issued is called “Young Family”, which means that two people married who have not turned 35 can apply for a mortgage on the proposed conditions.

2. Car loan – purchase a car in installments. It is possible to buy a car in installments on a subsidized loan basis with only one condition: the car will be included in the list of vehicles that can be purchased on preferential terms. These vehicles include only cars that were manufactured or assembled from imported parts in the territory of the Russian Federation. Such conditions were introduced to support the Russian car industry.

3. A loan for the purchase of agricultural machinery and support of the agricultural business. The loan is issued to legal entities – farmers and founders of agricultural organizations.