Loans installments

Aug 2, 2019 Finance

Loans installments

One of the ways to quickly obtain funds for any purpose is through instalment loans. Such a loan can be applied for both in a bank and in a loan company. In a bank you have to take into account higher requirements regarding your financial standing. In the case of a loan company, the analysis of your financial capabilities will not be so restrictive. The repayment of the loan can be divided into monthly installments. Their proper amount will allow you to repay them on time and at the same time maintain financial liquidity. Remember that taking out a loan is associated with certain costs that the borrower has to bear. So it is worth knowing how to calculate the costs of a loan. In this article you will learn how to skillfully use the installment loan offers.
Loans and the Civil Code
The loan agreement is governed by the provisions of the Civil Code. According to this Act, a lender may be a bank, a loan company, a company, an economic entity or a natural person. A necessary condition is that the lender is the owner of the money he wants to lend to the borrower. The issues of whether the agreement is a written agreement, whether the loan is burdened with costs, etc. are agreed between the two parties. It should be remembered that the rules for lending by banks are somewhat different. Banks are subject to control by the Polish Financial Supervision Authority. Therefore, the rules of granting loans by banks resemble the credit policy of banks.
A loan – in a bank or in a loan company?
If you want to take out a loan, you are certainly wondering where to do it. Do you want to try in a bank or can you use the offer of a loan company? It is difficult to say where the best place to take out a loan is. Each of these solutions has its own advantages and disadvantages. The question of choosing the right offer depends on many factors. If we care about low costs, in case of a installment loan we should rather use the bank’s offer. However, if we earn little and are indebted, applying to a bank can be a waste of time. Then it is better to immediately try to send a loan application to a loan company. Of course, the situation is different in the case of a momentary loan, when we pay off the entire amount in one go. But this is a subject for a different article.
Installment loans
Installment loans are very popular among American consumers. In this case, the loan is repaid periodically by monthly installments. The amount of the installment is not the cost of the loan, but it is very important for our home budget. Too high a monthly instalment may threaten our financial liquidity. It is known, however, that a low instalment is connected with prolonging the loan repayment period and, consequently, increasing the costs. Therefore, when determining the amount of the instalment, one should choose the golden mean. We can choose between two types of loan instalments: equal and decreasing. We will approximate the second type, which is much more advantageous for the borrower. The amount of decreasing instalments decreases with the repayment of the loan. Because the interest included in the instalment is calculated on the outstanding principal. Installment loans are an ideal solution for people who want to repay their loan gradually in reasonable installments.
Interest, commission and other costs
What costs should be taken into account when taking out a loan? Both in the bank and in the lending company, we will have to pay for the loan. First of all, in the form of interest. They have the greatest impact on the total cost of the loan. How is the interest rate determined? Interest results directly from the nominal interest rate of the loan. Such interest rate is given on an annual basis. Its upper limit cannot exceed four times the lombard rate. Installment loans are repaid in monthly installments. One part of the installment consists of interest, which we pay up to a month. Subsequently, the amount of the loan cost is also affected by the commission, margin and preparation fee.
Loan without office
Do people with bad credit history at the office have any chance of getting a loan? The answer is yes, but not in a bank. If you have recently been in arrears with your financial obligations and this information has reached the office, no bank will give you a loan. Bank analysts scrupulously examine potential borrowers. Of course, they also look into the database of the office. What can be done in such a situation? It is necessary to search for a suitable offer of a loan company. Some of these companies openly inform that they do not check their clients in the office. Therefore, in such a company a loan may be granted to debtors who have problems with timely payment of their financial obligations.