How to find a cheap personal loan in 5 steps

 

To find the most convenient and suitable personal loan for you, there are several aspects to consider, including Taeg and Tan, duration and insurance.

Finding an affordable personal loan is not always easy, but not only because of the banks. Often, in fact, it is we who choose the wrong formula that will make us throw a lot of money in interest or that will offer us installments that are too high for our pockets. Here are 5 tips to make the right choice.

 

Compare multiple personal loans

personal loans

Very first useful tip in these cases is to inquire about more products, perhaps with the help of an online comparator to optimize time. If you have not already done so, we advise you to immediately take a look at the financing offered by the Lite-Compare comparator, where you can perform accurate simulations to find the best product according to your needs. The advice is to compare at least 5 or 6 solutions proposed by different banks and financial companies.

 

Choose the lowest TAN

The Nominal Annual Rate indicates the interest rate at which the bank lends you the money. The lower the TAN, the less interest you will have to pay. When comparing the various loans on the market, therefore, pay attention to this indicator.

 

Watch out for the APR

personal loans

While the TAN only indicates the interest rate, the APR expresses the total cost of the loan. Therefore, in addition to interest, it also includes ancillary costs, such as those of preliminary inquiries, opening and closing of files, stamp duty on the contract and so on. In general, when comparing different offers, the APR is precisely what allows you to find the least expensive solution faster. Choosing the loan with the lowest APR will therefore help you keep the costs of the whole operation down.

 

Check if there is financing insurance

Except for the formula of the assignment of the fifth, loan insurance is not mandatory. However, it is not uncommon for the bank to offer one when entering into the loan agreement. In general, the advice is to evaluate the usefulness of a credit protection policy. If you think you may have difficulty repaying the installments, better take advantage of the security guaranteed by a policy. In this case, be careful to carefully evaluate the cost, since it is not always included in the APR.

 

If you want a lighter installment, extend the loan term

loan term

If you think you may have difficulty repaying too high installments, choose a loan to be repaid over a longer period. Doing this will not only allow you to have a lighter monthly installment, but will also increase your chances of the loan application being accepted by the bank. In principle, the ideal is that the installment does not exceed 30% of your net monthly income.

Credit with instant approval.

A financial bottleneck happened quickly: the car unexpectedly quits service or the washing machine goes on strike. In such moments, you are faced with the task of promptly replacing the corresponding devices, because these are generally indispensable for your own household. In such moments you need quick money. You can get this through a loan with an instant commitment, which usually gives you the funds you need within a few days.

The loan with instant approval: no loan with fast payout

The loan with instant approval: no loan with fast payout

However, you have to be careful linguistically, because many people often mix two things that actually have to be separated. An instant loan is not necessarily a quick payoff loan, but it can be. First of all, the designation only says that you immediately receive information about whether your loan application has been processed or not. Most of the time it is a “preliminary immediate commitment” that is given.

This means that the bank can collect them again if they subsequently determine during the check that the borrower does not meet their own requirements for a loan. You usually get the money in two to three working days. Sometimes it can take up to five working days. If, on the other hand, it is a loan with a fast payment, which is then explicitly called that, you often get the money within 24 hours.

Apply for the loan online with immediate approval

Apply for the loan online with immediate approval

It is obvious that you cannot apply for a loan with immediate approval in the traditional way at your own bank in a consultation, but you have to do it online. In order to do this, the bank requires some data that is something like a preliminary credit check. It is strictly forbidden to lie about this preliminary credit check. Such behavior can lead to immense fines. The system then automatically checks whether the data entered is sufficient for a loan or not. If the requirements are met, the immediate acceptance is made, which is only collected if the applicant has at some point said the truth.

Compare and save

Compare and save

It is advisable not to take the first offer on a loan with an instant commitment, but to make a comparison in this regard, because the interest rates that you have to pay for such a loan differ in part considerably. For this reason it makes sense in any case to consult a loan calculator that shows you which loan is really cheap and therefore recommended and where you pay too much.

Looking For Cash Loans Online

Is It Possible to Find Cash Loans Online? – Getting a cash loan quickly is tricky. Submitting a loan to a banking institution or other financial institution usually requires quite complex requirements and requires a long time, namely through the process of checking the required documents that take days.

Loan proposed by the prospective borrower

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If the requirements proposed by the prospective borrower do not meet the criteria specified by the bank, the loan proposed by the prospective borrower will not be approved.

But this time you are one of the alternative cash loans that is faster and easier, namely by applying for cash loans online.

Lots of people ask about the possibility of borrowing cash online. To find out more about cash loans online, let’s discuss them briefly.

If you write down the keyword cash online loans on an internet page then you will easily find money lending service providers online with a variety of tempting offers.

But before choosing an online cash loan service provider, it is better if you examine the background of the online loan service provider.

Do not be hasty in choosing an online service provider that offers loans in large amounts, in addition you need to avoid online loan providers that require you to send some money in advance, because it could be an online cash loan service provider is a fictitious company that commits fraud .

Reliable online cash loan service

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Reliable online cash loan service providers usually apply several requirements that must be met by prospective borrowers.

However, these requirements are usually formal requirements in accordance with procedures for borrowing money in general, namely Indonesian citizens, aged 21 to 65 years, have a savings account, have an email, and are domiciled in a place close to the location of the online cash loan service provider. .

Prospective borrowers will also usually be asked to attach other documents such as KTP, salary slip, and personal photos.

The online loan service loan process is also very fast, if your loan application is approved, you will immediately get the loan on the same day through the account that you have provided. You can apply for cash loans online wherever and whenever.

Online cash loans also offer a variety of other conveniences that ease prospective borrowers.

Prospective borrowers are even given the flexibility to set the loan period with an interest rate that is adjusted to your loan period.

The faster you repay the loan, the smaller the amount of interest you have to pay.

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All the processes that are put in place by experienced online cash loan service providers can usually be found out transparently so that you don’t have to fear being exposed to fraud.

The number of loans that can be submitted is usually relatively smaller when compared to applying for loans to financial institutions with legal entities, which range from 1 million to 3 million rupiah.

If you pay the loan in accordance with a predetermined time, usually the online loan service provider will provide a larger loan amount on the 3rd loan and so on.

The loan repayment system that is implemented by online cash loan service providers usually uses a one-time payment system on the due date.

Borrowers must repay the loan principal at the same time with interest obligations. The total bill will be adjusted to the simulation of the initial credit calculation which has been informed to the borrower when applying for a loan.

If you need a cash loan in the near future, then you can try to apply for a loan online through a trusted online loan service provider.

You only need to fill out your personal data on the online form in accordance with the instructions provided. And you will immediately receive notification of the status of your loan application via email or via text message.

After that, the online loan service provider will verify your data via telephone.

If your loan application is approved by the verification party, the loan money that you submit will be immediately transferred on the same day. It may be useful.

What to know about Mortgages and legal fees ?

A mortgage is a document that is used as security by, above all, private individuals who are interested in borrowing money, usually to a home.

For example, if you want to buy a house, it will be difficult to hand the house over to the bank, hence a legal document is needed that handles the security. The mortgage deed acts as proof that you have mortgaged property as collateral for a loan.

The pledge letter describes in detail how a home is mortgaged and at which bank. The pledge letter thus creates security for both borrowers and lenders.

Mortgages will accompany the new owner

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When a property is sold, existing mortgages accompany the new owner. If the previous owner has a loan on the property, there may be existing mortgages that pass to you.

The mortgage deed then serves as collateral for your loans and you do not need to contact the Land Survey to carry out a new mortgage deed for a fee.

This requires that the existing mortgage bond is mortgaged for a smaller amount than you plan to lend. If you plan to borrow more money than existing mortgage deeds are mortgaged, you must apply for a new mortgage deed from Good Finance for the remaining amount.

Security for the bank

The pledge letter linked to the Enrollment Authority at the Land Surveyor proves that the borrower owns the property. If the borrower cannot presumably repay the loan and the house must be sold, the owner of the mortgage (usually the bank) will have the priority to get the money from the sale.

Thanks to the mortgage, the bank has the opportunity to demand that you sell the property if you are unable to pay interest and amortization.

Calculate the cost of a mortgage

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The Land Survey helps to issue new mortgage deeds for a fee. A new mortgage bond costs 2% of the loan amount. In addition, Good Finance charges processing fees which currently amount to USD 375 per mortgage letter.

Example: You buy a villa for 3.5 million women with a cash contribution of USD 0.5 million. You, therefore, need to borrow USD 3 million, which means a cost for the mortgage letter of USD 60,000. This requires that the property does not have a mortgage certificate before. On the other hand, if there is a mortgage letter of USD 2 million, your cost will only be USD 20,000.

It is therefore important to check if the property has any existing mortgages before a property purchase. If you are planning to buy a house, you can ask the broker what mortgages are on the house. The broker must know if the mortgage deed is available and what amounts it amounts to.

Mortgages on high amounts are an advantage

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If you are planning to buy a villa, it is common for there to be a mortgage letter before. You do not have to worry about there being a mortgage on high amounts, this is only an advantage for you as a buyer because a high amount means you have the opportunity to borrow more money with the villa as collateral. A mortgage on a high amount means that the bank has given a high valuation of the house.

For example, if you buy a villa from an owner who has lived in the house for decades, there is a high chance that the mortgage deed will have a low amount, unlike a newly built villa that is only a few years old.

If you are planning to buy a villa that has a mortgage with a low amount, it is important to remember that the cost of a new mortgage is 2% of the loan amount that exceeds the existing mortgage.

Housing rights do not have a mortgage

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As a condominium is not counted as real property, it cannot be pledged. If you live in condominiums, you, therefore, do not need a mortgage. On the other hand, the right to tenant rights can be pledged to be used as collateral for a mortgage.

Loan for debtors with bailiff – check if it’s possible

A quick loan for those in debt with a bailiff can be one of the ways to deal with financial problems. Check what offers are available on the Internet, consider all pros and cons, and then make a rational decision.

Loan for debtors with a bailiff – what is that?

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If you are in a difficult financial situation and are looking for a solution to your problems, perhaps the first thing that comes to your mind is taking out a loan or a loan.

You need to be prepared, however, for banks to be very meticulous about verifying their customers’ creditworthiness. If the bailiff has already taken your salary, for example, the bank may undermine your credibility and will probably not give you a loan. However, there is another financial product that can be a salvation.

Loans for the repayment of debt collectors’ bills, as they are referred to, are granted by non-bank institutions, referred to as loan companies.

Obtaining such loans is possible because such institutions usually do not pay much attention to the creditworthiness of their clients and offer so-called loans for proof.

This means that you do not have to meet a number of requirements to receive an express cash injection, such as bank loans. Loans for debt repayment often take the form of payday loans or loans for proof – quick and easily available.

It happens that for a non-bank institution to grant a loan to pay debt bailiffs, it may require, for example, certification from a third party.

The guarantor can be, among others a person close to you – a partner, family member or friend. You can also expect more formalities when you apply for a high loan amount. In other cases, you will know the decision to grant a loan in a few minutes, completing only the online application.

A quick loan for those in debt with a bailiff – what is it characterized by?

A quick loan for those in debt with a bailiff - what is it characterized by?

Payday loans with which you can pay off other debts is a financial product that differs significantly from bank loans. Here are its key features:

  • Loans for proof are granted with a minimum of formalities – usually, you need an ID card, telephone number, bank account number, registered address, PESEL and you are 18 or 21 years old to complete the application. Sometimes, for example, an employment certificate is necessary, but you do not need to meet some of the typical requirements for bank loans (e.g. you do not have to have a good credit history or submit monthly expenses).
  • You can get a loan even within a few minutes, directly to your bank account – you don’t have to wait a dozen or so days or even several weeks, as in the case of bank loans.
  • Quick loans for debtors with debt collectors are available to the public and are easy to find – you can use, for example, payday loan comparison services such as Father Brown.
  • The amount you can apply for is usually no more than a dozen USD, although there are exceptions (in this case, bank loans seem to have an advantage over loans, because the amount offered is often much higher – but it doesn’t matter if the bank is wrong to assess creditworthiness and will not grant credit at all).
  • Loans – compared to some loans – are granted for a short time. You can borrow money for a period of several days to e.g. three years.

Loans in the form of payday loans to pay debt bailiffs have a number of advantages, but you must remember to think carefully about the decision to use the services of a loan company.

Consider whether you will be able to pay the loan installments regularly so as not to lead to further debts. Take a look at loan companies’ offers and compare different options. Also, be sure to search for opinions about the company online.

Loans for debt collection – does it have to be expensive?

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It would seem that loans for debtors with a debt collector are much more expensive than, for example, bank loans – after all, you borrow money on special terms that the bank will not offer you. In practice, however, it may turn out that a cash loan from a non-bank institution will not be expensive. How it’s possible?

Companies often offer various types of promotions for new and regular customers. For example, you can take advantage of a reduced interest rate or take out a free loan (usually the second offer is for new customers who have never used payday loans before).

Do you need a different offer?

Loan amount 100 USD USD 200 USD 300 USD 400 USD 500 1000 USDs USD 2,000 USD 3,000 USD 4,000 5000 USD USD 10,000 USD 15,000 Repayment Period 15 days 1 month 2 months 3 months 6 months 1 year 2 years 3 years

Representative example:
The actual Annual Interest Rate (APRC) for the online loan offer is 765.60%. Contract duration: 1M years, total loan amount: USD 1,000.00. The total cost of the liability paid in equal (annually) installments: 111.80 USD, total amount to be paid: 1 111.80 USD. The repayment is carried out in 12 equal installments. The calculation was made on March 30, 2020, on a representative example.

Minimum and maximum repayment period: min. 3 months, max. 10 years
Maximum APRC: 1,943.00%

Fees, commissions and other costs

Loans for debtors with a bailiff can be covered by fixed costs, which include, for example:

  1. registration fee – necessary to verify your identity, often one USD,
  2. commission – the amount of commission depends e.g. on the amount of the liability and the loan repayment date,
  3. Other costs – these include pre-defined fees that must be paid when the loan is not repaid regularly.

You can check the costs of loans, as well as the number of monthly installments and interest rates, using e.g. online loan calculators.

Useful tips on loan against real estate and car loans

Do you need additional funds and do you own a property or a car? A secured loan may be an offer for you.

I need cash. Where to look for her?

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When looking for financial support, you usually check loan offers first. Unfortunately, the bank – the only institution that can provide this type of financing – sometimes refuses to grant additional funds. Here are some of the most important factors that can lead to this situation:

  • you have no creditworthiness – pursuant to banking law, banks check your ability to repay a loan with interest within the prescribed period. If for some reason (presence in GFI or GC databases, large debt, late repayments) the bank finds that you have low financial credibility, the loan is beyond your possibilities. 
  • you have obtained a low scoring – the banks use algorithms that calculate your “score” based on the data you have provided. The lower, the lower the chance for a loan,
  • you don’t have an employment contract – banking institutions prefer clients with stable employment situation. Do you run your own company? Do you work on a mandate contract? Or maybe your income is generated by work contracts? In such a situation, the bank may qualify you as a person who will not grant credit.

The bank refused me a loan. Is a covered loan for me?

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If your bank has refused to grant you a loan, you may want to consider another form of financial support, that is, pledged loans. What are they and what characterizes them?

– A secured loan is a financial product offered by non-bank companies. The method of providing such support is different from bank loans. The loans have more availability, as well as a faster loan decision. They are an alternative, especially if the customer has been refused a loan – explains Sean Cole.

What is a real estate loan?

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As the name implies, a secured loan assumes that you have assets that can secure your debt. It is often a property. This type of loan is called a mortgage loan. One of the more frequently chosen options is, for example, real estate loans for 10 years.

The condition for a mortgage and a loan against real estate is to secure the debt in the form of a mortgage, i.e. a limited right in rem on the property. Establishing a mortgage allows the bank to recover money even if it is not repaid by the borrower.

Loan against an apartment without income – is it possible?

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When considering the option of a secured loan, you are probably thinking about all possible scenarios. Does the mandate agreement allow me to take out a loan against real estate? What if I lose my job suddenly? Can I apply for a loan against a flat without an income? Is there a product like real estate loans with a bailiff?

In the case of a loan against payment, you can be provided not only by the bank but also by a non-bank company. Unlike a bank, it usually does not require an income and employment certificate.

It also doesn’t check your credit history. To grant a loan against an apartment without income, you will often only need documents confirming ownership of the property.

When is a loan against a private housing possible?

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Before applying for a loan against real estate, make sure which form of ownership of the apartment you have. The two primary ones are:

  • cooperative ownership the right to housing (cooperative ownership) – it is the so-called limited property law, in which, despite a number of your rights over the apartment, the cooperative remains the owner.
  • separate ownership of residential premises (proprietary) – so-called mortgage ownership, which gives you the title to ownership of the premises, as well as the opportunity to participate in common parts of the property.

Remember!

If you own separate ownership of a dwelling (proprietary flat), you are the rightful owner of both the flat and the proportional part of the building and land on which the flat is located. In this case, it will be much easier for you to get a loan or real estate loan.

Car loan

Although in this guide we have focused mainly on the more popular and more often chosen real estate loans, it is worth remembering that there is also a group of financial products such as car loans.

– Some non-bank companies, in order to meet clients’ expectations, use loan types other than real estate. These include, for example, a third-party surety or a car lien. In order for the vehicle to provide security, the applicant for the loan must be its only owner – sums up Sean Cole.

How does the Government Agency mortgage loan surrogate regulation and conditions

Government Agency mortgage subrogation regulation for public employees and pensioners

Government Agency mortgage subrogation regulation for public employees and pensioners

Longed for by many public employees and pensioners for their convenience, Social Institute ex Government Agency mortgages are credit lines granted not only for the purpose of purchasing a first home, but also for the subrogation of the current mortgage. In this case we speak of a mortgage subrogation, which is granted following the provisions of the Government Agency mortgage subrogation regulation.

Social Institute has in fact drawn up a regulation for the granting of ex Government Agency loans, which indicates conditions, requirements and methods for granting credit. Cases relating to the subrogation of the mortgage also fall within the regulation.

It is the operation by which the public employee or pensioner who has a mortgage with a bank or financial institution transfers the loan to Social Institute. In this way, it obtains the conditions applied by the social security institution, without having to bear any costs. The portability of the mortgage is in fact free by law.

Surrogate mortgage rate and conditions

Surrogate mortgage rate and conditions

But what are the conditions of subrogation mortgage Government Agency regulation? The Government Agency Mortgage Regulation establishes the granting of mortgages with a duration of 10, 15, 20, 25 or 30 years. The interest rate is fixed or variable. By subscribing to a variable rate mortgage, the beneficiary obtains a Tan equal to the 3-month Euribor increased by 200 basis points, with fixed rate mortgages instead there is a Tan defined with the Loan to Value method.

The following table indicates the values ​​applied at the rate of fixed interest loans.

Recall that the mortgage subrogation does not allow you to increase the mortgage amount. As a result, the beneficiary of the loan does not get more liquidity. Instead, all the repayment conditions are changed, which will comply with the provisions of the Social Institute Mortgage Regulations.

The subrogation application must be submitted in the same way as for Government Agency first home mortgages. All the details in our guide on Social Institute ex Government Agency mortgages updated to 2020.

Cash Fund Loans and Conventional Loans

4 Fundamental Differences in Sharia Cash Loans and Conventional Loans – Even though they have been around for a long time in society, there are still many people who do not understand the difference between Islamic cash loans and conventional bank loans.

This is indeed not surprising considering that many people still do not understand the principles used in Islamic banks compared to what is used by conventional banks.

Islamic cash fund loans

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It must be recognized that the presence of Islamic banks provides more financial product options to the public. As with conventional bank financing, Islamic cash fund loans can be accessed by anyone who needs an injection of funds, both for business purposes and to meet consumptive needs.

In addition to banks that are specifically built with sharia foundations, now many well-known banks in Indonesia have also opened special sharia-based branches, which means that people no longer need to worry about the level of professionalism and services provided.

However, people should still learn to understand what are the differences between Islamic cash loans and conventional bank loans. This can be taken into consideration when wanting to apply for a loan.

4 Fundamental Differences in Sharia Cash Fund Loans and Conventional Loans

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Flowers

In conventional loans, a loan or credit is given on a loan agreement and thus the debtor or borrower is required to return it together with interest.

However, in Islamic principles, interest is not permitted at all because it is considered usury. Therefore, in sharia cash fund loans do not recognize the principle of the interest contract, but using a capital sharing or sale and purchase agreement, ijarah wa iqtina or lease with changes in ownership and or capital sharing.

In a capital sharing contract, the bank acts as the purchaser of the object desired by the debtor or customer. Then, the bank will sell the object to the customer at a certain price margin. Example: a customer wants to buy a car with a price of USD 150 million.

By the bank, the car will be purchased which will then sell it back to customers who want it at a price of USD 155 million. The amount will be paid in installments by the customer within a certain period. The difference in price or profit is the profit of the bank.

In ijarah wa iqtina, the bank will buy the goods desired by the customer. Here, customers only have to rent the object for a certain period. However, after the item is used for a certain period, the customer can decide to buy it.

In the mutanaqishah principle, both banks and customers put capital in a matter, for example, a bank provides financing of 60% of the purchase of a car and the customer is subject to 40%. In the future, customers can buy a portion of bank ownership that makes the car as their own property.

Share the Risk

In a conventional financing system, the customer fully bears the risk if he cannot return the loan. In sharia principles, the bank as a creditor also bears some of the risks.

Example: a customer borrows USD 100 million with conventional credit for business capital. Here, customers as creditors are required to repay the loan principal with the specified interest even though the business only generates USD 75 million.

With an Islamic cash loan, if the customer borrows USD 100 million for business capital, the bank will also bear some of the loss if it turns out that the business only generates USD 75 million.

Halal

In Islamic financing, funds must be channeled for halal interests. Therefore, customers must include the intended use of the funds and their use must also not deviate from this.

Loan Availability

Loan Availability

In terms of documents, both Islamic cash loans and conventional loans are not much different. One thing that makes a difference is that Islamic loans offer products that can be used for certain purposes that are not contained in conventional loans, for example for education, Hajj and Umrah financing, and so forth.

Good Finance, as one of the P2P Lending platforms that provides loan services for online business, health financing, and loan funding. With low interest ranging from 0.75% – 1.67% per month, Good Finance is ready to fund your loan needs up to USD 500 million