Archive March 18, 2020

Short-term loan – features and offers!

 

Credit products enjoy uninterrupted popularity. What is worth noting, we usually reach for a short-term loan. According to research by the Bank Association, short-term loans are preferred by as much as 91 percent of respondents. We don’t want to pay back the cash loan for years. We prefer to pay the debt quickly and not worry about installments that overburden the household budget. What charactersizes short-term loan? Where to apply for the cheapest loan? Check!

Do banks offer short-term loans?

Do banks offer short-term loans?

The most important feature of a short-term loan is its short loan term, up to a maximum of one year. Who offers short-term loan? This is the question we will answer first. Most banks offer a long-term loan for a simple reason. A longer repayment period means greater profit for them. Hence, we can easily find a cash loan for 8 or 10 years in the banks’ offer.

It is much more difficult to come across a short-term loan offer. However, nothing prevents you to choose a long-term loan and pay back the debt within 12 months. The maximum repayment period is 96 or even 120 months, but we can specify any repayment period. Each bank sets a minimum loan period. That’s why we included these offers in our comparison.

Short-term loan – definition

Short-term loan - definition

Short-term loan, like any bank loan, requires the conclusion of a written agreement between the lender and the borrower. The lender grants a certain amount of credit for a specified period, while the borrower undertakes to repay it on the agreed date along with accrued interest.
Features of short-term loan:

  • granted for a maximum period of one year,
  • most often it concerns small amounts that are easier to pay back within 12 months,
  • it is associated with favorable terms of the loan agreement, including the possibility of applying online or a quick loan decision.

Who can apply for a short-term loan?

Who can apply for a short-term loan?

The short-term loan offer may be used by persons who:

  • are of legal age,
  • have an ID card,
  • have citizenship,
  • have a permanent home address in the country,
  • have adequate creditworthiness,
  • are not entered in the register of debtors.

Banks carefully check the creditworthiness of each client. They want to make sure that the borrower returns the money on time. The most important factors are the amount of remuneration, form of employment, monthly cost of living and the number of household members, but also the lack of other debts. If we want to show that we are reliable customers, we should repay all loans and credits on time.

What do you need to do to get a short-term loan?

What do you need to do to get a short-term loan?

The credit procedure starts when you choose the cash loan offer. If we know which bank we want to sign the loan agreement with, we have to submit an application and wait for the decision.
How do I apply for a loan? We can do this in three ways: online, by phone or at a bank branch. The online procedure is usually only available to existing customers. If we already have a bank account, all you have to do is log in to electronic banking and submit an application there. In the case of telephone inference, a consultant will guide us through the entire process. Our task is only to leave the phone number on the website or the hotline account. We can also go to a bank branch and complete all formalities there.

Mortgage or cash loan – what is more profitable?

 

Are you planning to take a loan for an apartment? The best solution seems to be a mortgage! However, this is not the only way to make your own. dream come true. We can also apply for a cash loan. Which option is more profitable – mortgage or cash? Let’s see what solution brings more benefits! Only in this way will we be able to finally decide if we choose a cash or mortgage loan.

Mortgage or cash? Verify your finances!

Mortgage or cash? Verify your finances!

As much as 71 percent we buy new apartments for cash! For many, buying a flat from a developer is a way to invest savings. What to do when we are not in a group of lucky people who break a piggy bank and do not have to worry about money? Choose a mortgage or cash?

The answer depends on the state of our finances. If we have accumulated no more than 20-30 percent. housing value, then the only right solution is a mortgage. However, when we lack a small amount of several dozen thousand dollars, a cash loan is enough. However, if we do not have the required own contribution and want to use a mortgage, then it is worth taking out a cash loan for the contribution. It is worth combining all the debt with a consolidation loan.

What exactly characterizes individual credit products? What are the differences between them? Where is the best place to take a loan? In our article, we will provide a detailed description of mortgage and cash loans. We invite you to read!

What better mortgage or cash loan – basic differences

What better mortgage or cash loan - basic differences

What is a cash loan for, and what purposes can we finance with a mortgage? What kind of sealing do banks require? What maximum loan amount can we apply for? We will compare these types of loans in terms of key features to help you choose the right banking product!

The purpose of the loan

The purpose of the loan

The purpose of a mortgage can be:

  • buying a house or flat from the primary or secondary market,
  • purchase of a construction plot,
  • buying a holiday home or recreational plot,
  • building a house,
  • modernization, renovation or finishing of real estate,
  • construction or purchase of a garage,
  • buying real estate from a commune, treasury, housing association or trustee,
  • repayment of another mortgage.

In the case of a cash loan, we can use the funds received in any way.

Amount of credit

With a mortgage, we have a chance for much larger amounts than with a cash loan. The final amount that the bank will give depends on our creditworthiness.

Credit Procedure

Credit Procedure

Getting a loan for an apartment is a long and arduous process. The first step is to find the cheapest mortgage, and this is just the beginning. We must submit an application, provide the necessary documents, including a preliminary contract for the sale of an apartment. Let’s not forget about the own contribution! If we have problems putting down the required 20 percent. property value, we can take out a loan for own contribution. The bank will have 21 days to make a credit decision from the moment of submitting the complete set of documents.

The cash loan guarantees a quick credit decision and transfer of funds even on the day of submitting the application! Particularly attractive terms are associated with online credit. By applying for a loan online without leaving home, we can receive money in 15 minutes, without providing additional documents. A loan without certificates requires only an ID card.

Credit costs

When taking out a mortgage, we should be prepared for the need to incur various borrowing costs, including: interest, commission for granting a loan, property valuation costs, credit insurance costs and other types of insurance required by the bank, fees for early loan repayment and for credit holidays and those related to the use of additional products. They include, among others credit card and bank account. Are they obligatory? No, but they can be a chance to lower the commission and the interest rate. We will not pay for faster repayment or suspension of installments in every bank, so you should carefully examine the terms of the loan agreement. Despite so many costs, a mortgage is the cheapest type of bank loan with which we can implement our housing plans.

The main costs of a cash loan include commission and interest rate. Banks more and more often grant commission-free loans! It is worth checking such offers so that the loan is the least burden for the household budget.

Forms of loan collateral

Forms of loan collateral

The mortgage relates to large amounts, hence the basic collateral required by banks is to establish a mortgage. When we repay the liability, the court order the mortgage is removed from the land and mortgage register and the property becomes our property. This is not the only form of security – the bank may require bridging insurance until the mortgage is entered. Often it is also necessary to sign a contract to insure a low own contribution, as well as (almost in most cases!) – real estate insurance against fire and other random events. Credit collateral options are many, and all to minimize the risk of non-repayment.

As for cash loans, life insurance, a third party surety or a borrower’s declaration of voluntary submission to enforcement can be a form of security. The bank requires additional collateral only for large loan amounts.