How many years can I take a loan?

The young generation today wants to become independent in all aspects, therefore, already from 18-20 years old people want to have stable financial wealth. Of course, at such a young age it will be difficult to find a permanent and well-paid job, but the needs of the person will not go anywhere, someone urgently needs to pay for a rented apartment, someone wants to finally buy new equipment, and someone wants to fly on a trip . At a young age, everyone wants to live to the maximum, so many people without even thinking take a loan from the age of 18 and try not to think about the means.

Loans can really solve many issues, for example, a person has an unexpected critical financial situation. Let’s find out whether it is possible to take a loan from the age of 18, for what purpose a loan may be needed by young people, and also in what situations they may refuse.

How many years can I get a loan?

How many years can I get a loan?

If a person has never taken a loan, he may not know certain nuances, for example, how banks evaluate borrowers, what they look at when applying for a loan. Even if a person has already come across a loan, this knowledge may not be relevant, because all banks have different conditions for lending and selecting borrowers. The most basic criteria for selecting the ideal borrower to whom you can approve a loan will be:

  • Age. Many banks have a certain limit, from what age and to what credit can be obtained, mainly from 21 to 50 years. It is worthwhile to understand that some may allow you to take a loan even from 23 years old, so you should carefully choose a company.
  • Availability of earnings. The bank also looks for constantly working with high earnings, a person needs to earn more than the average minimum in the country and have a permanent job, where the borrower has worked from 6 months to a year. So the bank will be calm that the user will be able to pay the entire loan without delays and debts.
  • Credit history. Despite a good income or a match with age, a person can be refused at any time if his credit history is damaged. If the borrower has not paid the previous loans, has debts on them, then no one will even consider his loan application.
  • Property. The presence of their property for some banks is a very significant argument, this will mean that the borrower in an extreme case will be able to sell the property and pay the loan without debts.
  • Pledge. Banks also take this option as insurance, because having provided a pledge, the borrower will be insured against delay or loan debts, leaving the subject of pledge in return.
  • Guarantor. Many banks are wary of their customers, therefore they require to invite a guarantor, it must be a close relative or a trusted representative, for example, a friend, spouse or employee from work.

Of course, not every bank will demand everything at once, all companies have their own requirements, it is worth remembering. When applying for a loan or looking for a suitable bank, you should find out all the nuances of processing, credit conditions and all the requirements of a credit institution, so as not to get into an unpleasant situation when, for example, a person meets all the requirements except one. This naturally entails a refusal and an unpleasant aftertaste, so it is best to find out everything you can about the bank and only then think about it, get a loan there or look for a more convenient and advantageous option.

For what purposes can young people get a loan?

For what purposes can young people get a loan?

Many banks, with their strict requirements, weed out those who do not have enough income to pay for a loan, are too young to get it, so for example, students cannot get a loan here. The bank does not need customers who do not have a constant and high income, but there are organizations that are ready to provide the right amount of money under loyal terms and these are microcredit organizations. They make it possible to receive up to 20,000 dollars for a period of up to 30 days with the possibility of prolongation, and many services offer all their new customers loans at 0%, which is completely beneficial.

Since banks offer their borrowers large amounts of loans and a long-term period, such a loan can be issued for very large purchases, such as real estate or a car.

In a microcredit organization, young people can easily take funds for household needs, as well as for utility bills, furniture, training or medical services. This loan option allows a person to purchase the necessary thing or service without any restrictions.

It is such small money loans that are issued to young people; applications for a loan from a bank are still likely to be refused rather than approved.

How to find a suitable credit institution?

How to find a suitable credit institution?

Since today there are a lot of microcredit organizations, it will be quite difficult for the user to choose a really suitable company. In order not to get confused in the offers that are in companies, it is best to contact the All about loans online service right away and find the organization that will offer the most favorable rates and conditions for lending.

This service provides the user with the opportunity to receive the most basic information from a large number of credit companies, read reviews about them, and also what services and conditions they offer their customers.

By opening only a few tabs in the browser, a person can easily select the company from the list that will have the best indicators in his opinion for registering a loan in it.

Microcredits can be issued for any purpose, so young people will be able to take loans not only for the purchase of household appliances, furniture, but also for tuition, travel, celebration of events and much more. The service will help each user, absolutely free and online, to find a credit institution with current promotions, bonus programs and discounts so that the borrower can not only quickly and conveniently get a loan, but also save money on its use.

Is it possible to take a loan for negative?

Having a dirty name is a situation that nobody wants. However, unfortunately, there are many Brazilians in this condition.

To give you an idea, according to the GFI and GFIC (Good Finance Investment Corporation), there are about 60.2 million consumers in a dirty name.

In addition to the embarrassment, being in this scenario is harmful to do many things, especially to get credit. Luckily, there are some types of loans for negatives.

In this text, we will show you what the options are if you have a dirty name. Check out!

What does it mean to be negative?

money

Popularly known as a dirty name, being like this means that the person is registered with the credit protection agencies, that is, institutions such as the GFI and Honest Bank. This can usually happen if the consumer misses the payment term.

In this situation, the creditor company has the right to contact these bodies immediately. Therefore, it is very important that the client has his finances organized in order to be able to pay his debts and prevent his name from going to the credit protection companies.

How do I know if my name is dirty?

cash

There are three bodies for a consultation: Honest Bank, GFI, and Good Lender. Next, we’ll show you how to check if your name is on any of them. Understand!

  • Honest Bank: you can consult both online and in person. If you go online, you can access the Honest Bank website or application. In-person, you need to go to the posts and take your ID and CPF or some photo ID;
  • GFI: in this case, the consultation can be made through the website, but it is paid. An amount is charged from R $ 9.90. It is also possible to go personally to one of the service stations. In this situation, it is free, however, it is necessary to take the RG and CPF;
  • Good Lender: here, consultation on the website is free and, like other agencies, it is allowed to know your situation by visiting the posts, as long as you are carrying your identification documents.

What is the best type of loan for the negative?

money

Assets as collateral

This is one of the good ways to secure a loan if you have a dirty name, however, it is necessary that the property is in certain conditions. First, in the case of a property or vehicle, the ideal is that it is paid for, without any financial or legal pending issues.

What can scare the consumer is the fact that the good will be used as a guarantee of payment. This means that if he is unable to pay the concession debt, he may lose his property.

Despite the risk, if it is negative, the chances of getting a good amount of credit, often covering up to 50% of the good, are great. This is because the institution feels safe since there is a real guarantee if it lends the money.

Another point is that, in many loans of this type, the interest offered is lower than that of a specific personal credit for those with a dirty name, precisely because the risk for the financial company is less.

Mini Loans: Can You Get It Online?

Sometimes to solve certain daily tasks there is no need for large amounts, but for small amounts. These small amounts can also be made available by banks or financial institutions, through the so-called mini loans. These are small amounts that can be returned in a variable number of months. Here we compare the mini loan offers with their characteristics.

The Across Lender Credit Express Mini: the solution for unexpected expenses

The Across Lender CreditExpress Mini: the solution for unexpected expenses

An unexpected expense, an important occasion that requires an equally important gift, a necessary purchase, can be financed by Across Lender’s Credit Express Mini, which makes available from 1,000 to 3,000 USD to be returned in a span of time ranging from 18 to 36 months. The installment amount can also be chosen by the customer by rounding the amount.

For a delayed return over time

For a delayed return over time

If, on the other hand, you need a slightly more important figure and want to delay payment over time, an excellent choice can be the Infrabank Small Loan, which remains one of Spin Lender’ major competitors, another top financial. Amounts from 1,500 to 3,100 USD are made available to the customer, who can return the amount in the number of installments of his choice, for a really small and light amount.

The peculiarity of this loan is that the sum is made available in 48 hours from the request. Interest rates are also somewhat advantageous. For example: a loan of 1,500 USD, repayable in 12 monthly installments, provides for a Tan of 9.00% and a Taeg of 13.76%.

Small Loans Litebank: ideal for those looking for competitive rates

Small Loans Cofidis: ideal for those looking for competitive rates

Finally, those who prefer online or telephone channels over traditional ones will find the Small Loans Litebank interesting. With competitive rates (Tan from 9.98%, Taeg from 10.57%), they consist of figures from 1,000 to 5,000 USD which can also be requested via the web through a digital signature, or on the phone, by contacting an operator through the dedicated toll-free number.

Here is a summary table

  Credit Express Across Lender Small Loan Infrabank Small Loans Litebank
How much can you request: From 1,000 to 3,000 USD From 1,500 to 5,000 USD From 1,000 to 5,000 USD
Number of installments (monthly): From 18 to 36 months 12 to 120 months 12 to 72 months
Interest rates: Fixed rate for the entire duration (available in the branch) 5.95% Tan, 10.75% Taeg Tan from 9.98%, Taeg from 10.57%

 

Renovation loan – Find cheap loan for renovation!

Determine funding needs

Determine funding needs

Before borrowing, you should determine exactly what the total renovation costs will be. Ideally, use a spreadsheet program and list each position here. If you do not know exactly what costs, for example, artisans charge, ask for a quote.

Own contribution

If you carry out the renovation completely without craftsmen or you already have materials and machines for the renovation, you can define this as a so-called personal contribution. You can also book existing capital under this. In any case, estimate your own contribution realistically. Do you have the necessary knowledge and also the time to carry out the renovation partially or completely yourself. If you are not honest with yourself at this point, you will have a problem with financing afterwards.

Set the loan amount

Set the loan amount

You now know your financing needs and have defined your own contribution. You can now deduct your own contribution in the form of working hours, already available materials, money and machines from the financing requirements. The result is the loan you need to take out to finance your renovation.

Create budget

Before comparing specific loan offers, you should know what rate you can afford monthly. A budget that lists all income and expenditure is suitable for the determination. The result: Income – Expenditure is the amount you could afford as a monthly loan installment. This should be positive, otherwise no reputable bank would pay you a loan.

Compare loans

With the loan amount and the maximum possible credit rate determined from your budget, you can now compare offers with the help of our credit comparison calculator. Important: please be sure to include the “renovation” usage next to the loan amount. The calculator then shows you the cheapest rate depending on the duration.

running time

A short term saves interest. In the credit comparison calculator, however, do not choose a term that is too short, since the interest rates given only apply if the credit rating is very good. You should be able to afford the loan rate well.

Apply for credit

Apply for credit

Select a provider in the credit comparison calculator and fill out the electronic loan application. At the end, the individual loan offers are checked in real time and you are shown in the same step whether the selected bank or another bank would accept your application and at what interest rates. If you agree, you can either apply for the loan directly via online authentication via a video chat or via the so-called PostIdent procedure.

Why Quick Credits Are Given In Minutes?

 

Among all the financing products that are granted in the country, there is one that has stood out above the rest for its advantages and its speed of concession: the fast loans that private companies sell. Their demand grows year after year, although not all applicants know why they can have the money in so few minutes. To shed some light on this issue, in this article we see what are the aspects that streamline the application and contracting process for these products.

Quick loans are contracted through the Internet

Quick loans are contracted through the Internet

The companies that market these products do not, in general, have physical offices, so the application process and contracting of their quick credits is entirely online. This is a significant time saver, as you do not have to go anywhere and, since the documentation can be sent over the Internet, it is not necessary to make dozens of photocopies.

The fast credit companies have algorithms to carry out their analyzes

The fast credit companies have algorithms to carry out their analyzes

However, the streamlining of the quick loan granting process is more automated. Most companies have an algorithm system that is responsible for evaluating requests , so they are able to provide a response in a matter of a few minutes.

Its algorithm evaluates in a few minutes more than 20,000 different factors, which allow you to approve or deny requests very quickly. The following explanatory video shows us how they are able to grant a quick loan with such immediacy:

Taken together, lender calculates that it can process applications and issue a definitive response in just 15 minutes, a time that is practically insignificant compared to the time it usually takes for banks to grant their loans.

To request a quick loan, you just have to present documents

To request a quick loan, you just have to present documents

Finally, another aspect that also streamlines the process of granting fast loans is that you hardly have to present documents to request them, only the fair and necessary ones to demonstrate that we have an optimal purchasing level and that we are who we say we are ( identity document, proof income, bank statement showing the latest movements of our account, etc.).

In addition, more and more companies have automatic identity verification systems. The operation of these applications is very simple: the applicant only has to enter the keys of his online banking so that the lender can consult the movements of his accounts and verify that he receives sufficient income and is not impersonating anyone’s identity. Thanks to these systems, it is not necessary to send any document, which further reduces the granting time.

As we see, there are several factors that allow you to get a quick loan in just a few minutes. However, we must take into account that, in some cases, it may take up to a maximum of two business days to receive the money.

Form, content and registration: how to make an loan in writing

Private writing for loans does not in itself have legal value but serves to protect itself against financial contracts stipulated between private individuals and against checks carried out by the tax authorities on all sums of money received. Usually, private writing is therefore a document that protects loans between private individuals, very often in the case of a non-interest bearing loan between family members and relatives. Let’s try to understand, however, how secure private writing can be for loans and mortgages.

When private writing is safe for loans

When private writing is safe for loans

A private writing is a sort of contract that is signed between two parties (two private) and is allowed only if it is not continuous, but occasional. It is safe for loans because, first of all, authenticated, a financial agreement, also guaranteed by the Inland Revenue, constitutes proof of legal value, and secondly because it dictates the conditions for the return of the amount by the debtor.

Legally, private writing is defined as a “loan agreement” according to ex.art. 1813 of the civil code and to be valid and safe it must report the data of those who carry out the loan (creditor and debtor), the reason for the loan, the methods for returning the amount, any interest on the sum (but they may also not be contemplated), the deadlines, any penalties in case of failure or delayed repayment of the debt.

Lastly, the signatures of the loan contractors with a certain date must not be missing. In these cases it is very useful, to take shelter from the dispute, to proceed with the authenticated signature. An authenticated signature in a private writing is nothing more than the attestation by a notary (but also by another figure who acts as a public official) that there has actually been a signature of a writing in his presence, once ascertained the identity of the person who signed the signature.

As far as mortgages are concerned, the costs of the notary are reduced

As far as mortgages are concerned, the costs of the notary are reduced

The loan agreement can also take the form of private writing, and occurs when it is signed simultaneously by the parties (not in front of a notary). This type of mortgage is opposed to the public deed (which we remember is mandatory in some particular cases such as the activation of a mortgage), and in this case the signature of the parties can also take place separately, because there is authentication before a notary (which is public official). Obviously in an unauthenticated private agreement of a mortgage the expenses due to the notary are reduced.

Online you can find numerous models of private writing contracts. What should never be forgotten, however, in this situation, is the inclusion of the wording “Ex art. 1813 et seq. of the civil code “, precisely to highlight that the type of contract dealt with is the mortgage, which in this case will be legal and safe.

Subsidized loans for businesses: how to access microcredit.

In particular, when it comes to nascent companies and whose development is determined by an evolving economic capacity, access to credit becomes an essential element for the continuation of entrepreneurial activities but, where there is no guarantee of proposing to banks in exchange for the loans requested (see also Immediate online loans), here is no possibility of starting up and developing a business: this is the primary reason why many small and medium-sized national companies have closed their doors in the bud.

Issues regarding guarantees

Issues regarding guarantees

After a careful analysis started by the Ministry of Economic Development (MISE), regarding the issue of guarantees for microcredit dedicated to SMEs, between 2014 and 2015 it was decided to integrate the reference Law, the 662/96 which regulates the ‘art. 2 paragraph 100 letter a, access to public guarantee funds for companies, some simplifications, which we find within the Consolidated Banking Act (TUB) and the Decree of the Ministry of Economy and Finance n.176 of 17 / 10/2014, in addition to a further revision carried out in March 2015.

In this way, we want to simplify the application process to access the funds destined not so much for business financing, but for placing a guarantee – for the banks providing the loans – consisting of a public fund, generated for part by financing which come from the Ministry for Economic Development – for the current year it is 30 million USD – and for the remaining part, from funds paid voluntarily by citizens, organizations, associations and companies.

Companies that do not possess any type of guarantee that can be offered to access bank loans (see also bank credit), therefore take advantage of this fund, which acts as guarantor for the sums that are paid by banking institutions.

But what are the requirements to be admitted to the guarantee fund for microcredit, also confirmed for 2015? Let’s see them together.

The companies that submitted an application must be set up for no more than 5 years. The same applies to freelancers, whose VAT number at the time of the request to take advantage of the guarantee fund, must not have been opened for more than five years.

Another criterion is the number of employees: both in the case of companies and professionals, they must not exceed 5 units. Number rising to 10, only if the applicants are simplified partnerships, cooperatives or limited liability companies.

Capital Requirements

Capital Requirements

As regards the balance sheet, the criteria are as follows:

  • Asset assets not exceeding 300,000 USD
  • Gross revenues up to $ 200,000
  • Debt level up to $ 100,000

Lastly, only as far as professionals are concerned, they must be enrolled in the various national professional orders or, in the absence of registration with the order, membership of the professional associations registered in the specific list of the Ministry for Economic Development is required.

Duration and amounts

Duration and amounts

As regards the duration of the guarantee, the limit is set at 7 years and the maximum amount is $ 25,000, except in cases where the loan is paid through the installment payment: in this case, the maximum amount of the guarantee, is set at 35,000 USD.

Who to apply for admission to the guarantee fund? To banking institutions, financial intermediaries or confidi – collective credit guarantee consortium – who will carry out the request process on behalf of companies and professionals in possession of the above characteristics.

According to data from a study carried out by the Ministry of Economic Development, to date over 99% of companies and professionals who have applied for access to the guarantee fund for microcredit, have obtained access to credit despite not having any type of real guarantee to be proposed to the banking institution. A success, not to be underestimated.

Mortgage Loan – This is why early repayment of interest pays off

It is called Mortgage Lifetime Loan and is a new form of mortgage financing also dedicated to pensioners that allows you to obtain liquidity quickly without having the obligation to repay, at least as long as the contractor is alive, the sum loaned and still remaining owners of the object. Mortgage

 

To be honest it is a financial instrument present in our legal system since 2005 and widely used in Anglo-Saxon countries which has recently been modified to make it more accessible and, therefore, usable by consumers.

It is a medium-long term loan not finalized, that is, it allows you to use the money obtained without restrictions, which can be taken out by the over 60 owners of a real estate property that is “monetized” and transformed into liquid money (see also Affordable loans for young people and retirees ).

Who is it for?

Who is it for?

As we have already said, this financial instrument is dedicated to all those who are at least 60 years of age and who own a property that is not already burdened with mortgages. Therefore, all legal entities, such as companies, associations and companies, are excluded. The lenders are, however, the member banks.

The amount that can be financed is generally between 15% and 50% of the value of the property to be mortgaged, estimated by appraisal, and the percentage increases with the age of the applicant because, obviously, the older the beneficiary is the shorter the estimated time that the lending bank will have to wait to see the credit granted return.

How does it work

How does it work

This is the most innovative part of this form of financing, as the contractor can decide not to return anything while he is alive of what has been paid to him and leave the responsibility of deciding how to repay the due to the heirs of the property and the debt. . There will be two choice options available to them:

  • pay the amount accumulated (capital + interest) accumulated over the years from your own pocket, even if necessary by taking out a loan for this purpose, no later than 12 months from the death of the contractor;
  • let the Credit Institute sell the property to recover the credit claimed, repaying any excess amounts.

In the event that the policyholder has been married or has lived with his partner for more than 5 years, the mortgage annuity contract must be made out to both, and both must be aged 60 and over. In this case, the repayment of the debt will fall on the heirs after the death of the longest-lived spouse / partner.

It is important to underline that this operation foresees quite high costs, both because the spread is high, approximately around 5%, and because the capitalization of the interest is compounded and includes the anatocism: that is, the interests already calculated on the capital financed annually add up to capital thus generating an exponential increase in the amount to be repaid.

Let’s take an example to better understand this particular count: let’s imagine that we have obtained a credit of $ 40,000 on which a fixed rate of 4% is applied. The interest count will follow this trend:

  • 1st year – capital: $ 40,000 – interest: $ 1,600
  • 2nd year – capital: $ 41,600 – interest: $ 1,664
  • 3rd year – capital: $ 43,264 – $ 1,730.56 interest

With this trend, the longer the policyholder will be, the higher the final debt that will fall on the heirs. If the mortgages loan taken as an example were taken out by a 70-year-old man and the latter died at 85, the initial debt of $ 40,000 would come to the shoulders of the heirs soared to around $ 72,000.

To avoid an excessive accumulation of expenses and protect the heirs as much as possible, the contractor can agree with the lending institution at the time of signing the contract the early repayment of the interest, year by year, while it is still alive, in order to take advantage of the advantages of simple capitalization. In this way the heirs, at his death, should worry about returning only the initial capital.

It should be noted that in this form of financing the amount of the debt will never exceed the value of the property.

Which means that, in the event that upon the death of the contractor or the longest-lived spouse the total debt exceeds the value of the house, the bank will lose the surplus and will not be able in any way to rely on the heirs.

When signing the contract, it is also mandatory to sign an insurance policy on the property. It is the policyholder’s right to choose the policy from the insurance company which, for the same product, offers the most advantageous conditions.

Again to protect the policyholder, depending on whether the loan uses a fixed rate or a variable rate, the bank is required to present the customer with one or two statements in which the capital and interest performance over the of a duration of 15 years both with the fixed rate and in the hypothesis, for the variable, of a future increase in rates.

Procedure

Procedure

First of all, it is advisable that the interested party obtain more estimates from various banking institutions that offer this type of financing. After careful analysis, we will contact the bank that is able to offer the best economic conditions by submitting an application and attaching the following documents:

  • identity card;
  • fiscal Code;
  • family status;
  • preliminary notarial report or the deed of origin.

If the bank deems the documentation sufficient, it is possible to assess the value of the property. This analysis will be carried out by a bank expert and the cost of the operation falls within the costs borne by the applicant.

After the appraisal, the contract is stipulated, which must take the form of a public deed signed between the bank and the notary. What has been agreed will be disbursed on the beneficiary’s current account in a single solution or in a number of tranches previously agreed with the bank during the negotiation phase.

Advantages and disadvantages

Advantages and disadvantages

The lifetime mortgage loan has on its side the advantage that the beneficiary can access, freely disposing of, an amount of money, even important (up to $ 350,000 if the property owned is of considerable value), without any obligation to repay as long as it is in life and remaining in all respects the owner of the apartment.

Indeed, the disadvantages mainly concern the heirs, who may have to repay within 12 months a much higher figure than the capital previously disbursed, on pain of losing their home.

It is however a valid alternative to the sale of the bare ownership of the apartment (irreversible act), because it leaves to the heirs at least the possibility of final choice on the renunciation of the property or not.

However, this is a form of financing that is still not widespread. There are very few lenders that offer the mortgage annuity among their products, also because with the crisis of the last few years the real estate market has suffered a significant setback and the value of the properties has fallen dramatically, with the risk for banks not to see the entire mast return even in the case of sale of the mortgaged property.