Personal loans and subsidized loans: how to get them?

The facilitated personal loan

The facilitated personal loan

The repeated interventions of the legislator, the implementation of European funds, and a targeted offer by the banks, have increased the number of loans that fall within the category of subsidized loans. In general it can be said that these are loans offered on favorable terms, on the basis of laws or agreements, and reserved for certain categories of persons falling within the canons established by the regulation.

That is, a loan for the purchase of books, computers, educational material, or the payment of University Masters, for atypical workers.

Other loans that fall into this category are loans for young people and for women, often provided through the creation of special funds by the regions (such as the Lazio Region, Sicily, Puglia, etc.). The local nature of these funds forces the potentially involved categories to stay constantly informed. It is in fact loans with a generally temporary or revolving character (therefore until the allocation is exhausted or until the deadline for the assignment).

Finally, there are forms of financing that are structural in nature and that can only be granted to specific categories. These subsidized loans are stable but are limited by the allocations periodically made, and can only be granted for certain purposes or liquidity needs. For example, these are subsidized INPS loans, both in the version addressed only to former Ipost post office employees and former Inpdap public employees, and to all pensioners.

What is the facilitation?

What is the facilitation?

The benefits often concern the interest rate and the guarantees.

By way of example we recall the Family Bonus that has exploited both aspects (subsidized rate and access regardless of income strength) and also the initiative “An [email protected] for a PC”, which provided for a loan guaranteed by the State, for the ‘purchase of a portable PC for the price of 1 euro per day (the price of a cappuccino), intended for students regularly enrolled in state universities.

Or the most recent Youth Bonus or the Teacher Bonus and the Music Bonus. In these latter cases it is a benefit (one has a credit line that can be spent without restitution) and not a real form of financing, even though it is a benefit dedicated only to specific categories.

The loan agreement for deserving students

The loan agreement for deserving students

If instead we consider the improvement conditions deriving from agreements between private individuals and universities, we find a different example of facilitation with the loan ad Honorem proposed by OneCash Bank to all university students enrolled at the participating universities. The purpose is to finance the entire course of study and, possibly, entry into the world of work.

In this case the facility consists of obtaining a credit line that can be used freely for a maximum of 3 years without payment of the installments.
Therefore, it is not a question of facilitating economic conditions, but of repaying the loan.

At the end of the agreed period, in fact, the sum used + accrued interest will be transformed into a repayable personal loan, based on one’s availability, in a period ranging from 1 to 15 years.

It is also possible to use an optional time period, of a maximum duration of 2 years, in which the payment of the installments is postponed, in order to enter the world of work with more serenity.

We find other similar examples with DER and Astro. The common aspect of the different proposals of the big banks is linked to accessibility criteria often conditioned by the scholastic “merit” of the student.

Indirect funds and “benefits”: microcredit

Indirect funds and "benefits": microcredit

The formula of the “guarantee” fund was the one most used in the last 5 years, thanks above all to the assertion of microcredit. This very often requires that the applicant obtains the strengthening of personal income guarantees with access to the fund itself. This means that the allocation is not directly applied, but the sum requested will be paid by a bank that has an agreement with the institution that established the Fund.

In this type of financing the lending credit institution is ‘reassured’ by the fact that if the applicant, who has problems accessing credit, does not have to repay his loan, the fund will do so. For this reason, when the fund ceiling is entirely occupied by guarantees, it can no longer be used. Unlike student loans, agreements between banks and institutions also define reductions in the interest rates applied.

Subsidized loans to companies or small and medium enterprises

Subsidized loans to companies or small and medium enterprises

With regard to this sector, and with reference to financing, there are two categories of subsidies: subsidized loans for the start-up of a new business activity, and subsidized loans for the support of an existing and already started activity.

This type of loan is assigned through a call for tenders, which works on the basis of a regulation which indicates:

  1. requirements;
  2. type of expenses and activities allowed;
  3. subjects that can benefit from it;
  4. cost coverage percentages;
  5. percentage of the subsidized rate;
  6. presence of a quota, if foreseen, with a grant.

Funding opportunities can occur at European, national or regional level, through the allocation of funds that have a specific deadline, or are until resources are exhausted.

At the Bankate it is possible to request detailed information about the type of intervention, the sector concerned, the beneficiaries, the total budget or the percentage of funding, the deadline and the references for further information.

At the banks it is possible to access subsidized forms of credit, for example we can mention the Law 949 Artisans, which provides for public contributions to facilitate the financing of craft businesses.
The Sabatini Law is also very important, established to facilitate the purchase or production of machine tools (including agricultural machines).

Due to the difficulties that emerged during the period of crisis and the reduction of employee-type employees, to encourage self-employment, Invitalia was also born. In these cases, to access the funds (the allocation of which is not constant but is strongly influenced by budgetary policies and resources from the European community) the minimum requirements must be fulfilled, which very often have benefited young people and the unemployed.

Even in this case, however, good communication is lacking, so you need to keep yourself constantly updated by going directly to Invitalia’s website from time to time, or by using sites that deal extensively with the various news.

Credit for Dental Treatment

You can often apply for a loan for your dental treatment in the dentist’s waiting room. Providers, such as Z | easy, promise cheap credit and direct billing with the dentist and the laboratory.

We want you not to be blinded by advertising. In June 2016, we compared the special loan for dental treatment with the equivalent of tooth financing through direct banks. Our tools for credit comparison are the installment calculator on the special provider’s side and a free credit comparison calculator.

Dental treatment credit – best treatment for self-payers

Dental treatment credit - best treatment for self-payers

With their credit for dental treatment, patients compensate for the lack of care after various “health reforms”. In return, the dentist gives self-payers access to the latest treatment methods and the best dentures. Dentists can now finally recommend the veneer instead of the crown in a cost-neutral manner. Dentists no longer have to grind half a tooth so that the patient does not have to pay the costs.

From this perspective, the current situation, with fixed subsidies from health insurance companies and optional supplementary insurance, even offers the chance of more dental health. If patients pay for the services themselves, you can of course decide what happens to your teeth. Gold instead of steel – quality can decide from the inlet to the dental implant. Second-class dentistry for everyone has given way to two-class medicine.

Because, the high own contribution decouples people from good dental treatment who do not have sufficient creditworthiness for regular lending. Credit for dental treatment is only granted by regular banks and the specialist provider if a sufficiently good credit rating can be demonstrated. This gives a fair starting position for the comparison of credit costs.

Dental loan – loan comparison special loan versus direct bank

Dental loan - loan comparison special loan versus direct bank

People are looking for dental credit in a range from around 2500 to 15000 USD. For example, a fixed anterior tooth bridge in veneered precious metal costs around 2400 to 2800 USD. (Depending on the bonus). A single implant is roughly at the same price level, although potentially necessary bone growth increases the price by leaps and bounds. Four support teeth as implants, without major complications, lead to a share of 14,700 USD.

In comparison of convenience, the special credit for dental treatment scores through direct billing with the dentist and the laboratory. But in order to save two online transfers, a post office would have to be visited twice to apply. It would be easier to apply for a loan from the direct bank with a videoident check. Without leaving home, the credit process can be completed in less than 30 minutes.

In this case, instead of going to the dentist, the approved loan ends up in your own checking account. It takes about two to three working days for the money to arrive. As a first comparison value, we enter $ 2,700 credit for dental treatment in the rate calculator of the specialist provider. For a monthly rate of 122 months, the sum would be financed with a term of 24 months. This results in a total of 228 USD in financing costs. (6.90 percent APR).

For the same loan amount, with interest independent of creditworthiness, the free credit comparison calculator suggests an installment payment of 114.59 USD. The credit comparison calculator shows the effective annual interest rate for this loan offer, again with a term of 24 months, at 1.79 percent. The direct bank earns a total of 50.22 USD from the financing. Direct bank financing would thus be almost 178 USD cheaper than special financing.

Credit comparison – 15,000 USD credit for dental treatment

Credit comparison - 15,000 USD credit for dental treatment

The special loan offers 15,000 USD credit for the dentist bill at 9.90 percent APR. With a term of 72 months, monthly installment payments of 275 USD would have to be made. Overall, the financing costs for the special loan amount to $ 4800 interest.

The same amount could be raised via the free credit comparison at 3.69 percent effective APR. With a term of 72 months, the monthly installment payment for the direct bank loan is $ 232.15. In total, the direct bank loan costs interest of 1714.86 USD.

Conclusion credit comparison – dentist loan

Conclusion credit comparison - dentist loan

The apparently convenient offer to finance dental treatment directly from the waiting room is not necessarily the optimal solution. The only noticeable advantage in comparison would be the convenience of direct billing. The application process itself is much less convenient than with a direct loan. In the cost comparison, the credit for dental treatment via special financing is completely out of the ordinary.

With small loan amounts, the financing costs about four times the price of financing a direct bank. In the case of a larger loan for dental treatment, the official rate calculator of the specialist provider calculates 2.8 times the financing costs. With such large sums, it would be extremely expensive to ignore the price difference. With 15,000 USD dentist credit through the specialist provider, 3085 USD interest would be paid unnecessarily.

Our recommendation:

Recalculating and comparing is always worthwhile. With the loan for dental treatment, you can save a lot of money by visiting a free credit comparison. Our recommendation from people with restricted credit ratings, for whom neither a special offer nor a direct bank loan are eligible, is Astro Finance.

Astro Finance offers people serious access to credit that would otherwise fall victim to two-tier medicine. Low-interest loans, probably even cheaper than the special offer, could also come from private sources.

Overdraft facility credit – today or better tomorrow?

Do you still have doubts whether a loan to compensate for overdraft facility is worthwhile in your case or whether an iron saving would compensate for the overdraft facility?

We would be happy to calculate how much your current overdraft facility will cost you. In addition, the sample calculation will clearly show you that if you save yourself, if you allow yourself to be disciplined, you will pay extra.

The overdraft facility not only disappears more easily with an installment loan at a low interest rate and compatible installment payments. You save a lot of money from day one.

Dispo is part of everyday life in most German households. About half of all current account owners use their overdraft facility occasionally or even permanently. Account owners are not in a hurry with a credit to offset the overdraft facility. As long as the house bank does not warn, given the high overdraft interest this can take decades, everything remains the same.

It is of course planned in every household to put the overdraft facility in its place by saving iron. With a little self-discipline, it would be a laugh if the account didn’t come back to zero without a loan. This is exactly why the overdraft solidifies as soon as a certain account balance is reached. The level is different for everyone, but statistically the level is 3,000 USD overdraft.

Short question: “Do you know how much overdraft interest your house bank charges”? Most only know that the overdraft facility is expensive. Exactly how much money the house bank earns is unread on the account statement of the statement. Stiftung Warentest wanted to know more and found overdraft rates between just under 5 percent and 17.5 percent. The middle field in our research was around 14 percent effective interest.

For comparison, an inexpensive installment loan is around 2 percent effective interest pa, i.e. 12 percent lower. It becomes clearer that there is no time for the credit to offset the overdraft facility if real figures in USD prove the interest costs.

How much does the overdraft facility actually cost?

How much does the overdraft facility actually cost?

For the calculation example, we assume an overdraft of 2,900 USD. We do not use the bank’s overdraft facility for extreme examples, but for an average of 14 percent effective interest per annum. The overdraft facility thus costs the account holder $ 406 a year. With self-discipline with regular card payments, that’s a thing. Let us assume that it will work.

In 36 months, the overdraft facility should be offset by pure savings. As an annuity loan calculates, a monthly savings rate of 97.96 USD would have to be made. In 36 months of iron saving without becoming weak, a total of $ 626.56 interest would be paid. In comparison to the “permanent dispo” a clear saving. But a credit for overdraft facility does much more.

In the free loan comparison, there is currently 2,900 USD in credit at an interest rate of 1.99 percent that is independent of creditworthiness. The monthly payment in installments would be 14.93 USD cheaper than the savings rate. The household budget would only have to shoulder 83.03 USD a month. The rate can be so much cheaper, since instead of 626.56 USD interest only 89.01 USD financing costs arise.

Fast installment loan for overdraft facility compensation – don’t give away money

Fast installment loan for overdraft facility compensation - don

If you are not in a hurry with your overdraft facility through an installment loan, you mean really well with the house bank. There can be no other reason, such as no time to apply for a loan. The credit comparison of regular credit offers for overdraft settlement takes a few seconds. Only two entries are required, loan amount and term, since “at your disposal” is practically always preset.

Just select the provider you want. If the credit requirement were about the same as our numerical example, you would earn a good 500 USD in the next five minutes. Even inexperienced users do not need more than five minutes to complete the online application. If a loan offer with Videoident is chosen, borrowers don’t even have to leave the house for the online loan.

The legally required ID check takes place when applying via Videoident via Skype. An employee of the test company calls via video telephony within about 30 minutes. He checks the ID card and the documents to be submitted. Depending on the provider, the credit required for the overdraft facility can reach the checking account within 48 hours and save interest.

Weak credit rating – overdraft facility is always worthwhile

Weak credit rating - overdraft facility is always worthwhile

People with a somewhat weaker credit rating are often sitting particularly deep in the dispo trap. The overdraft facility is granted to them. The house bank does not want to grant an installment loan for debt rescheduling with low income or precarious work. Instead of 14 percent, as in the sample example, people in this situation often even pay up to 20 percent interest.

The overdraft facility above the actual overdraft facility, the so-called approved overdraft for a limited time, leads to the high risk premiums. A regular loan to cover the overdraft facility by a guarantor or co-applicant would be possible. However, we recommend maintaining independence and pointing out alternative loan offers.

For example via Cream Bank or Astro Finance, overdraft facility compensation by private donors would be possible. With the application via Cream Bank, banks and private investors willing to take risks would be reachable at the same time for the request for credit for the overdraft facility.

New rules for payday loans – what are they and will life come in?

 

 

Proponents of consumer rights say the new payday loans policy will help low-income people and families trapped in endless debt cycles. Industry representatives argue that payday loans are an option for people facing unexpected expenses or emergencies. The rules may paralyze the industry, which according to the report accumulated several billion in revenue from fees, check out the best deals.

Here’s what you need to know about payday loans and new rules.

What are payday loans?

What are payday loans?

Payday loans usually range from 200 to 1000 USD and must be repaid when the borrower receives the next payment. On average, borrowers incur a fee of USD 15 for each USD 100 borrowed. This is equivalent to over 391% of the annual interest rate. The government may limit access to payday loans in some areas or limit the amount that people can borrow. Some countries have banned them completely, according to the national conference of legislative bodies.

What is the controversy?

What is the controversy?

It is argued that most customers who take out payday loans cannot afford them. About four out of five customers decide to take out a loan again within a month. According to this quarter, the loan is borrowed more than eight times. They are constantly getting new fees. Numerous groups have long recognized the payday loans practice as “predatory”. Some customers are trapped by loans in a harmful debt cycle – but that’s a small percentage, maybe 15%. Industry representatives explain: “We get about 4% return on investment” or “We don’t make indecent profits on people’s harm”,

What do the new rules dictate?

What do the new rules dictate?

1) Lustration of borrowers

Lenders will need to check the borrower’s income, cost of living and major financial obligations (such as a mortgage or car). In most cases, this means downloading a credit report.

2) Special rules for loans below USD 500

Borrowers who take out loans of smaller value do not necessarily have to go through all the lustration obstacles. But these borrowers must pay at least a third of their loan before they can buy another one. It is borrowers and indebted borrowers who can also help prevent borrowing.

3) Limits on the number of loans

If the borrower takes three payday loans in the short term, lenders must cut him off from them for 30 days. In addition, unless they prove their ability to pay back the whole thing, borrowers cannot take more than one loan at a time.

4) Prevention of criminal charges

Lenders cannot continue to attempt to withdraw payments from the borrower’s account if they do not have sufficient funds. After two attempts to pay, lenders will need to re-approve the borrower’s payment method. The new rules may come into force – but this is not a foregone conclusion. They will also apply to other types of credit products than traditional loans. This includes auto loans and long-term loans related to bank payments.

What does this mean for lenders? Some borrowers may be forced to close the deal. What does this mean for consumers? If payday loans are not available in some areas, there are alternative options. These include some short-term loans offered by some Community banks or credit unions. Some employers also offer advance programs.