Category: Loan

First loan without interest

by Erik Vogt
Currently, one of the most popular alternatives to obtain extra fast money is to apply for loans online. Unlike banks, the web pages dedicated to granting loans or credits do not ask for so many requirements and the processes are usually simple and agile for greater customer comfort. These types of loans are designed to help us solve any type of inconvenience that may arise in our daily lives, such as a medical emergency or an urgent repair at home. In this way you can solve the problem without spending the savings or decompleting the budget. To apply for a loan you simply have to follow the detailed procedures on each of the pages dedicated to that business or use a loan comparator to see all the options available in the market that fit your profile and ability to pay.

How to choose a loan online?

How to choose a loan online? Perhaps the most complicated part when applying for a loan online is the choice that suits us best. In the market we can find a large number of companies that are dedicated to the loan of money. However, not all of them are reliable and it is important to pay attention to some details. The first thing you should see when entering is that the page has a valid security certificate and that the address is HTTPS, otherwise you would be taking the risk when entering your personal data. It is also important to check that the page does not take you to other addresses. One option is to read the reviews that other users have published on the internet to find out if it is a safe company. This also to know how is the experience of applying for a loan with that company and the conditions they provide to their clients. On the other hand, if you use a comparator you can rest easy because you will only find companies with a proven reputation for greater security when hiring. Also, the loans you will have in the options have been chosen because they have clear conditions and have no hidden or misleading clauses.

How to apply for a loan?

How to apply for a loan? Although each entity has its own procedures and requirements to grant a loan there are some that repeat. For example, first, you must fill out a form directly on the page of the company where we are making the request. The answer is usually given in a matter of minutes. The next step once we have the approval is to send the missing documents. The following requirements are usually requested:
  • Have valid ID
  • Be of age
  • Be a bank account holder
  • Reside in the country
Other companies ask for some more requirements such as having a private email account or non-corporate mobile number, but these are the most important. As you will see, they are more flexible requirements than you will find in a traditional bank. In addition, you will not have to queue or wait in an agency just to be denied the loan. It also offers an opportunity for those without credit history or with a very low history. This way they can build their credit profile with an online loan. Finally, as a customer you can choose how long you want to pay the loan.

Recommendations before applying for a loan

Recommendations before applying for a loan Applying for a loan is easy and fast, but that is why it is still a financial product that must be treated carefully to avoid getting into more debt. The first thing you should do before making the request is to analyze if you really need the money or if you can get it elsewhere. In any case, you should avoid taking loans that are above our ability to pay as we could end up with a larger debt than the amount requested. It is important to make a study of our financial situation prior to the request. In addition, you have to be attentive to the terms and conditions of the loans. Especially the payment deadlines and what happens in case we cannot meet the quota at some time. With a comparator you can see all the conditions quickly to avoid unpleasant surprises in the future.

Requirements to apply for a loan

by Erik Vogt
The requirements to apply for a loan vary from company to company in the case of online loans and between banks for traditional ones. However, you can make a small scheme of those that are repeated in each other so that you can take it into account when requesting it. Here are the most common requirements in banks:
  • Certificate of citizenship or foreigners
  • Be of age
  • Resides in the country
  • Work letter or income certification
  • Declaration of income or certificate of non-declarant
  • Bank statements from the last 3 months
  • Be a bank account holder
  • apply for a credit
While the requirements to obtain an online credit are the following:
  • Be of age
  • Certificate of citizenship or foreigners
  • Bank account holder
  • Resides in the country
As you can see, the requirements to access an online credit are significantly lower than those of traditional banking. Additionally, those with a low credit history can also access these products. On the other hand, traditional credits have in their favor that are usually for higher amounts than online credits so before requesting any of the options you must make an analysis of your current situation and how much you need.

Traditional credit or online credit

Traditional credit or online credit We already know that the requirements to obtain a credit online are easier to obtain than those of a traditional credit. However, when deciding on one or the other there are more factors that must be considered so that you can make the best decision. Bank loans have some particular characteristics. For example, you can pay in installments the amount is usually higher. In case you want to make a large purchase like a car, this type of credit may be more convenient for you and not one online. Another benefit is that it can be renewed at the end of the deadline to pay. On the other hand, online loans are designed to solve specific situations such as medical emergencies or home remodeling. They are also usually flexible when it comes to setting the deadlines to pay. The main advantage of this type of credit is that it allows you to access money faster and without cumbersome procedures. In the end, choosing between one and the other will depend on what you really need at a given time. The important thing is that you can assume the corresponding obligations and keep up with the payments.

How to choose a credit online?

How to choose a credit online? Choosing a company to apply for a loan online can be complicated by the large number of offers that exist in the market. However, we must be careful to choose one that is legitimate and reliable. For this you have several options. For example, the company page must have a valid security certificate and an HTTPS address so that your data is encrypted and protected. Also, no serious company charges for the study of the application so, if they ask you for money ahead, it is most likely that it is a scam. You can also check the reputation of the company through a simple internet search. Read the reviews of other users to know if it suits you or not.

Apply for a credit online

Apply for a credit online If you want to apply, the procedure is simple, you just have to go to the page you have chosen and fill out the form. The answer is given in less than 5 minutes and the money will be in your account in one or two days. With a comparator you can analyze hundreds of offers at the same time so you can choose the one that best suits your needs.

Final considerations

Before hiring the credit you must rigorously analyze if you are able to pay it and request only the amount you are going to use. Most companies charge fines for non-payments and if you miss the deadline you may end up paying much more than what you requested. Following these tips you can make the most of your credit online and resolve any unforeseen events you have in your day to day.

How to Calculate How Much a Capital Loan is Needed

by Erik Vogt

How to Calculate How Much Capital Loans You Need - Every type of business will certainly need a lot of funds and capital to be able to grow and develop. There are many ways to get a lot of capital, from filing loans to banks to capital loans from P2P Lending. But how much funds are actually needed? Calculating how much capital loans are needed is indeed not easy.

You might think of asking for more funds than you actually need, assuming that it will help you in the long run by having extra capital. However, more funds means having to work longer hours and more difficult in returning the money to investors. Of course, borrowing funds according to business needs will be more profitable.

However, if you are confused about calculating funding requirements, then here are some tips that can be practiced in order to find out what funding is really needed.

How to Calculate How Much a Capital Loan You Need

1. Determine the Purpose

When making a financial plan, make sure the business goals are set. Is it just to build a brick shop or to create new products. Set goals as detailed as possible when presenting your goals.

This will help you focus on what you really need to be purchased to achieve your goals. Think of financial plans which are then converted as a form of budget; This will provide clear guidance on what to do.

2. Determine the Planned Timeline

capital loan

The financial plan must be accompanied by a planned timeline. Do your best to estimate the grace period for sub-goals that you need to achieve on your way to your main goal. Think of this as a tactic that needs to be developed to achieve a long-term strategy. Planning a grace period will also make it possible to better calculate capital requirements. This will encourage you to see periods that might force you to spend extra funds.

Consider the time period when more capital will be needed to fund a new project or create a new product, then suggest accordingly.

3. Calculate your financial needs

financial loan

After creating goals and set deadlines, be prepared to calculate your financial needs. Include everything needed to achieve your business vision. There are three different capital categories, namely; fixed capital, working capital, and human capital.

Fixed capital consists of durable goods, usually used during the operational period. Plants, tractors and factories are examples of fixed capital. Usually, fixed capital is expensive and not liquid, but it will be very necessary to support your business operations.

Working capital consists of disposable producer goods, such as raw materials, work in progress, and fuel. Whatever is used in an act of production is considered working capital. Because of its characteristics, working capital can be more difficult to manage. So prepare well when calculating how much capital you need. 

Human capital can be easily defined as people who work for your company and their respective skills, educational background, health, and others.

Like fixed capital and working capital, spending on human capital needs to be as detailed as possible. Payroll costs, budget for more human resources, etc. - record everything and make a range of costs.

Planning how much money is needed may sound very time-consuming, but believe that this will help you have a more thorough preparation over time.

Once you get the needed capital loan, you can also re-evaluate the existing calculations so that they remain on the right track. So make as much detail as possible!

After you finish calculating the funds needed, then the next time to look for the loan. Koinfidence provides opportunities for your business to continue to grow with a venture capital loan from ComeBusiness.

Online business people who have a strong vision in increasing sales from time to time are entitled to get loans of up to Rp 2 billion with low interest ranging from 0.75% to 1.67% per month. Very interesting, right? Let's submit a loan to Koinfidence.

Building loan comparison & calculator for current interest rates

by Erik Vogt
The building loan is a loan that can be used to finance construction projects or to buy a property or condominium. In principle, it is earmarked so that it can only be used for the purposes specified in the loan application. For this reason, customers have to submit cost estimates for the anticipated renovation costs or the list of the total costs made by the architect to the bank. For the later payment of the loan amount, the invoices of the craftsmen or property developers or the architect’s completion report are then necessary. The bank can then be sure that the building loan has actually been invested in maintaining the value or increasing the value of the property and has not been spent otherwise. This is the only way that the land charge entered in the land register of the property is also valuable and actually serves to secure financing. On the basis of the applicant’s documents, the banks draw up a financing plan that shows the necessary financing expenditure minus the equity capital or own contributions. This necessary credit requirement is then the basis for the creation of a loan offer, which is created individually for the customer by using different loan types.

An overview of the requirements

bank In order to be able to use a building loan, various requirements must be met. The most important requirement is that the potential borrowers can pay the monthly installment from their income. To do this, the income must be sustainable. Parental allowance, unemployment benefit and child benefit for older children are often not recognized by the banks due to the time limit. The bank then draws up a household account based on the monthly income, which can be proven by means of proof of salary, pension notification or the balance sheet for the self-employed. The income is now compared to the monthly recurring expenses, whereby the cost of living is generally estimated by the institutes as a flat rate. The loan can only be granted if the budget is positive. A further requirement for the building loan is a correct Schufa information, which must not contain any negative characteristics. For self-employed people, the banks often get additional external information, which must also be positive. Ultimately, however, the bank must also receive sufficient security for the loan it has granted. Since the registration of land charges is usually chosen for the financing of a property, the property must have at least the value of the loan amount, ideally, the amount of the loan is even far below the value of the property, because then the security of the bank is greater, which is positive will affect the interest rate. For this reason, borrowers should always be able to demonstrate equity in new construction projects or purchase requests in order to reduce the loan amount and the subsequent borrowing costs.

Building loan comparison and calculator – top offers online

Building loan comparison and calculator - top offers online Here you will find our comparison and calculator for construction loans. Find the current top interest rates and conditions from the best providers on the market. Simply select your desired dates above and click on “Compare mortgage lending”.

Interest calculation for a building loan

Determination of the interest for a building loan The interest for the building loan is probably the most important feature to watch out for. After all, the interest charge is decisive for the amount of the monthly installment and the calculation of the total cost of construction finance. The building rates charged by the banks are of course primarily based on the general market level. The central bank’s key interest rates reflect the refinancing costs of the banks, which form the basis for calculating the credit margins. In addition, since the introduction of the Basel II equity guidelines, the borrower’s personal credit rating has also played an important role in determining interest rates. The better the customer’s credit rating is determined by the bank as part of the scoring, the lower the interest charged on the loan. The reason for this is that banks only have to set up low, cost-intensive provisions for customers with first-class credit ratings than for customers with low credit ratings. The basis for the credit rating calculation is information on income, length of employment, age and marital status. The Schufa score and the intrinsic value of the collateral also play an important role.

Annuity financing

Annuity financing One of the types of loans for home finance that is used most frequently in Germany is the annuity loan. It is particularly characterized by its long-term nature because this type of loan can have a term of up to 35 years. The individual term is calculated based on the desired repayment amount, which is given as a percentage of the loan amount. Repayment rates of 1-5% of the initial loan amount are often available to the customer, although today even loans with a repayment option are available. If the chosen repayment amount turns out to be wrong after the contract has been concluded, it can be changed once a year free of charge. The interest can be fixed for the annuity loan between 5-20 years. During this fixed interest period, the rates for the construction loan also remain constant, so that customers receive planning security. Especially in low-interest phases, attention should be paid to the longest possible fixed interest period in order to reduce the risk of interest rate changes after the fixed interest period has expired. Applicants for the annuity loan should also make sure that the longest possible availability is agreed so that the loan only has to be used in full after one year without the commitment interest being charged. Furthermore, the financing should be equipped with a special repayment option so that the loan can also be repaid early.

The cost and fees for the loan

The cost and fees for the loan There are various costs for taking out a building loan. On the one hand, these are the interest costs, which depend on the market level and personal creditworthiness. The banks also charge processing fees and valuation fees, each of which can amount to up to 1% of the loan amount. Some direct banks have now started to waive both these processing fees and the valuation fees. A comparison of the offers is very recommendable in the case of construction financing – due to the complexity of the offers and the different life situations. The effective annual interest rate, which should be calculated for the entire term, offers an important comparison option because it contains not only the nominal interest rate but also the processing fees. However, valuation fees or account management fees and insurance costs are not included in the effective interest.

Financial requirements for a loan approval

by Erik Vogt
An overview of the prerequisites for granting a loan at Good Finance: The online processing of personal loans is strictly organized at Good Finance, only a few steps are necessary to complete all the formalities. In order to make optimal use of these processes, it is advisable to prepare the documents to be submitted. This gives you the opportunity to dispose of the requested money within a very short period of time.

The basic personal requirements

The basic personal requirements In general, Good Finance is only open to private individuals, i.e. both accounts and loans are only set up for private purposes. You should have the following prerequisites to receive a loan approval:
  • You are at least 18 years old, have a good credit rating and want to apply for a private loan.
  • You receive a regular income as an employee, worker, pensioner or pensioner.
  • Even as a freelancer, you have the opportunity to get a personal loan from Good Finance, but not as a trader, as a business start-up, or in agriculture or forestry.
  • You have your place of residence and place of work as well as your account, which is used for your salary or remuneration, in Germany.
  • If you are married, please apply for the loan at Good Finance together with your spouse or spouse. Prerequisite: you have a common home address.
If you apply for a private loan as a freelancer, this must not be used commercially, which is very important to Good Finance.

Financial requirements for loan approval

Financial requirements for loan approval As a basic prerequisite for a loan from Good Finance, your personal economic circumstances must allow the credit installment due to be paid reliably from the outset. In order to give Good Finance the opportunity to carry out the check, please provide all income for regular expenses, such as living expenses, utilities, electricity and telephone costs, insurance contributions and other charges. If you service further loans or leasing contracts, the monthly installments and the outstanding residual values ​​are required. In any case, please indicate whether you would like to apply for additional financing or plan to reschedule existing liabilities. Since in the latter case there is no existing monthly charge, the liquidity check is carried out under different conditions.

Credit Bureau information is essential

bank Obtaining a credit report is an indispensable element of the credit check; Good Finance also requires your declaration of consent. The Credit Bureau is used by a wide variety of banks, service providers and trading companies to provide a wide range of information on the one hand and to call up the score value if necessary. Both personal information and data on payment behavior, such as the number of accounts, credit cards and financing, as well as possible payment disruptions, are included there. For security reasons, it is advisable to request a free self-assessment from Credit Bureau once a year. You will then receive a list of the information stored there and can compare it with reality. If there are deviations or errors, you have the option of correcting them, for example if negative entries were not deleted as agreed three years after the process was completed.

Important documents for your loan application

Important documents for your loan application All of the information you have already provided online must now be filled in. Prepare the following documents:
  • Your bank account in Germany, to which your income will also be transferred
  • Proof of income: for income from employment, the last three pay slips or proof of remuneration, for freelancers, copies of the last two tax assessments
  • List of monthly expenses
  • Information on existing loan liabilities with residual value, rate and term

Credit Check Process

When you enter your personal data in the online form, a first check is carried out, but you need a printed application. If you are not yet a Good Finance customer, you will also receive a form for the post-identification process. Please go to a post office and present your valid identity card or passport so that identification can be carried out in accordance with the Money Laundering Act. At the same time, you hand over the complete documents and the completed loan application, the documents will be sent to the bank immediately. As soon as the examination has been completed, you will receive a notification from Good Finance and the money will either be paid out or used as agreed to settle existing liabilities.

Advice on loans and financing.

by Erik Vogt
A loan can always be a sensible measure, not in the purchase of luxury goods, but rather in some situations. Because in many cases simply necessary things have to be paid, such as open bills, a renovation at home to guarantee value retention or just a simple car repair. With a loan, people then create a certain financial scope. However, a loan does not always have the desired advantages, because in its literal interpretation the term “loan” stands for trust. For trust, in the willingness to settle existing as well as future liabilities. Such a willingness is unfortunately not always available these days.

Loan is only a temporary use of money or goods

Loan is only a temporary use of money or goods It is often overlooked that a loan is only a temporary use of money or goods. It is also overlooked that interest is accrued on the loaned amount for this transfer of use, which also wants to be paid back. And the longer the term of a loan, the higher the interest. Because the length of the term also increases the risk of a lender that a customer can suddenly no longer repay his installments. In addition, fewer and fewer luxury and consumer goods are paid in cash these days. People buy almost everything on credit – from urgent purchases to cars to home furnishings and vacation. In many cases, the risk of funding is no longer recognized, people live in “prosperity on installments”. And in order not to be able to pay the installments in the first place, you quickly take out residual credit or credit default insurance without considering that these contributions are also significant. You should therefore see that you can get rid of such obligations quickly, but without giving yourself an unrealistic time period for repayment. Anyone who takes over with the installments is quickly listed with a negative entry at private credit checker. Today there is also the possibility for private credit checker free loans, but such balancing acts need to be carefully considered. The special conditions to which the borrower is bound are too negative. Because here not only the interest, but also the fees are much higher than with a bank loan.

Millions of Germans are fighting over-indebtedness

Millions of Germans are fighting over-indebtedness Around four million households in Germany no longer meet their financial obligations. Due to constant financing, most people have a mountain of debt that at some point is no longer manageable. Due to unemployment or changes in living conditions such as separation, divorce or death row, financial difficulties are increasing. There are also many problems with single mothers with more than one child. About 60 percent of all debts are due on arrears, 20 percent of them on installment loans alone. Most fail to recognize that responsible lending must also be matched by responsible borrowing. It is also often difficult for households to meet the necessary expenses with their income and to build up additional reserves. But reserves are not only recommended, financial reserves and targeted savings plans are also indispensable for private retirement provision if you want to maintain your usual standard of living in retirement. Before each borrowing, you should therefore start with a cash descent, in which all recurring fixed payments are determined. This should be followed by forward-looking financial planning in which you include individual expenditure items in your planning in advance. At the same time, if there are various financial problems, the variable expenses can also be reduced, because these depend almost exclusively on the daily purchase decisions. If the monthly income is still not sufficient to pay the cost of living as well as the due installments and bills over a longer period despite a reduction in personal living standards, then there is a risk of over-indebtedness. Often, however, (spouse) and close relatives who have signed loan agreements or guarantees, without being able to pay, also become jointly liable. Partners who had to vouch for the other person can request the payments made back. Unfortunately, there is only one problem here: In most cases, the claim cannot be realized due to the main debtor’s lack of capacity. Those affected, who have been proven to have been exploited due to the close relationship to the principal, should in any case seek advice from the local court. This problem can be seen. In order not to get into a spiral of debt and ultimately into over-indebtedness due to unforeseen life events, not only a high degree of discipline is required to comply with commitments made, but also a far more important and always important aspect: who takes out a loan and thus enters into commitments , should always find out in advance about the costs and the risks. This is the only way to ensure that those affected also create sufficient scope for unforeseen expenses.