MonthApril 2019

A loan and a loan? Explanation of the differences

In the meaning of colloquial language, credit and loan are considered to be interchangeable words. Both of these words have one meaning regarding the loan of a certain amount of money. However, it should be remembered that they differ significantly in reality. They differ in the type of contract and bring with them other economic and legal consequences.

 

The issue regarding loans is perceived as easier

The issue regarding loans is perceived as easier

Practically everyone can give them. Regardless of whether he is a natural person or an institution specializing in this. The only requirement to be met is to be the owner of the borrowed money. Matters related to loans are regulated by the provisions of the Civil Code.

 

The matter of loans is completely different. Only the banking institutions have the right to grant them, and the money earmarked for this purpose remains only in their possession. However, they are not their property because they come from the deposits of people who are their clients. Credit agreements are governed only by banking regulations.

 

Loan agreement

Loan agreement

As has been said, both cases present the issue of borrowing money. The loan agreement always contains the exact date of returning the amount borrowed. A loan agreement does not require such a requirement. The capital transferred on its basis becomes the property of the borrower immediately. The agreement contains all reservations, if there are none, the borrower has the full right to dispose of these funds, while the creditor has no right to intervene in the manner of their use. The essence of the loan agreement is that only cash is subject to a cash loan.

 

The loan is again quite different, because here the bank only gives the borrower a certain amount of money for a specified period of time. Here, cash does not become the property of the borrower. In addition, it is only cash-free cash, which is credited to your bank account. There is no physical possibility to receive a loan in the form of a cash loan. So when you withdraw money from an ATM using your card, you think you are getting a loan, not credit.

 

The loan is granted by banks on strictly defined terms

The loan is granted by banks on strictly defined terms

The first and most important of them is to provide a specific purpose for which the loan will be used. If the borrowed funds are used for a purpose other than the one declared, the bank has the right to demand repayment of the loan immediately. People using economic or consumer credit, which is mostly allocated to current expenses, have a slightly greater freedom.

 

Like everything else, credit also has a price. Its granting is associated with the collection of remuneration in the form of commissions as well as interest. It is calculated from the capital borrower transferred. As stated before, it is not owned by the bank, therefore it is important to generate profits in favor of the bank.

 

Loans are usually free. It is difficult to charge interest every time you borrow money. However, the parties can agree among themselves that the lender will receive some interest on the amount borrowed on account of the remuneration. A loan agreement between natural persons may be challenged by the court because it may be considered excessive from the point of view of social coexistence.

 

It should also be remembered that the loan agreement must always be concluded in writing, and in the case of a loan agreement, no form is required. However, the safest will be that when the amount of the loan exceeds PLN 500, it should be concluded in writing, because only in this way is it able to enforce any rights.

 

Conclusion

Therefore, making the right decision as to whether to borrow money better or to take out a loan remains an individual matter of every human being. For each of them, of course, one should, as best as possible, secure their own interests so as not to be cheated or stretched.

3 Practical Tips To Make Your Loan Request An Inexcusable Bid

The first step to borrowing safely is to have an organized financial life. We know that this term may sound very generic, but in general it means that you must maintain a healthy financial condition, since you never know when an unforeseen one will arise and you will need a loan …

In such cases, financial institutions are relentless. Therefore, there is no “middle way” or shortcuts: in order not to take the risk of the time you need it the most, having your credit denied, you need to maintain a spending routine that will allow you not to have the entire budget compromised.

In this article, you will specifically understand the relevance of a healthy financial life when applying for a loan and how to make an irreproachable loan proposal. Check out:

1) Organize your Financial Life and Keep It Healthy:

1) Organize your Financial Life and Keep It Healthy:

Financial institutions take into account several factors when approving or disapproving a loan proposal, among which is clearly their movement in the bank (s), their Score and, of course, whether or not you are negative. This information you probably already knew, but …

What you did not know is that your loan or loan proposal is also valued according to your financial life, income and expense organization.

That means you can not win 10 thousand dollars if your expenses are equal to or higher than your income. That is, even if you have a high salary, this does not make you a “good payer” for financial institutions. It is more common than one imagines having the loan or loan proposal rejected despite having the “clean name” and “earning well” …

Now, you’ll use that same pyramid to separate your spending by percentage, come on:

  1. Think of your salary as a pie chart;
  2. Half of it should be aimed at basic needs: housing, food, transportation and etc;
  3. A quarter of it will be divided into fixed accounts like internet and phone and other expenses (such as your short-term goal and gift for girlfriend / wife);
  4. The remaining room you should invest.

2) Keep your Bank Score updated:

2) Keep your Bank Score updated:

Already in the article Know what Score is and learn how to improve yours , we explain to you what it is and how to update your Score Bank , if you did not read or remember, reread the article linked right above …

So this tip is simple and practical: follow the step by step that we teach in the other article to update your Score and you will have a good score in the hands, that way, your loan or credit proposal will become more and more irrecusable.

Why is Score important when applying for a loan?

As you already know, Score is your reputation as a payer and it is clear that this score directly influences when it comes to borrowing, so keep your outstanding debts up to date, avoid getting new ones and keep your score up to date.

3) Stop making excuses:

3) Stop making excuses:

“Ah, but I could not spare or invest this month for ‘N’ reasons …”

Stop right now to do this!

Studies indicate that most people applying for loans have two goals: to take out debt and invest in some personal project. These are two very important reasons in anyone’s life and you can not give them up.

At the time of applying for a loan, if you comply with what was recommended you have been spared, avoided unnecessary expenses and maintained a healthy financial life, all this to have a better Score … So you will have saved some of the money you need for your goal, thus reducing the value of the loan and minimizing the possibility of default or delays.

Today you are making a loan but if you keep your financial health as a priority soon you will be an investor and you will be lending to people. Think like this and stay focused.

How to get a loan for consumer needs

Bannybank is a state bank of the Republic of Belarus. The company conducts its activities not only with legal entities, being a system-forming financial institution, but also widely distributed in the market of individuals. This organization offers a full range of banking services, but in this article, we will talk about what loans Bannybank provides.

About bank

About bank

Before making a decision about which bank to take a loan, you should examine the reliability of the company. Bannybank is the largest organization in the republic. The degree of representation of this bank is comparable to Tserbank in Russia. However, unlike the Russian counterpart, the Belarusian neighbor is almost completely state-owned, since more than 98% of the shares belong to the Republic of Belarus, while the Tser (50% plus one share) shareholder is the Central Bank, which is independent of the state.

The beginning of its activities Bannybank counts from 1922. The company credits more than 90 thousand legal entities and private entrepreneurs, including the largest industrial companies. Also, the activities of the organization are aimed at the international arena. The Bank has representative offices in Russia, China, Germany, as well as a wide network of partners and investment projects around the world.

 

Customer credit

Customer credit

The peculiarity of consumer loans of Bannybank is that the offer directly depends on the refinancing rate. In the Russian market, standard relations of supply and demand work as a regulator.

The interest rate on loans at this bank depends on the current refinancing rate and the term of the loan. In this case, the rate is floating. This means that if the bank changes the refinancing rate in the course of consumer lending, then it will automatically change in the contract. Consider the current offers of consumer loans from this bank.

Term, years Refinancing rate +
one 0%
2 1.5%
3 2%
four 2.5%
five 3%

At the time of writing this article, the refinancing rate was adopted in the Republic of Belarus, adopted in October 2017, and was 11%. The maximum amount is determined individually and depends directly on the borrower’s solvency. At the same time, the banking company does not set a definite limit.

Only the client’s solvency is limited. It is believed that the confirmed income of the borrower should not exceed 15 basic values. Thus, the company avoids clear wording for the maximum amount of crediting expressed in concrete figures.

 

Requirements for borrowers

borrowers

A loan in Bannybank can be issued by citizens of Belarus, as well as by foreigners, and even stateless persons. The main requirement for potential customers of a banking organization is that the potential borrower has a permanent place of residence in the republic. And also need income, which is formed in Belarus. It is possible to issue a loan for consumer needs without guarantors.

 

Required documents

loan amount

To get a cash loan at this banking institution, you will need to prepare a set of documents from the following list:

  • passport. Banking professionals will need a copy, but you also need to have the original with you;
  • if a cashier is provided for a consumer loan in cash, a copy of the passport will also be required, but the original will also be required for presentation;
  • statement of permission to check the credit history for all parties to the contract. Such an application is created both in a bank department and independently in the National Vela Bank;
  • application for verification of personal data of potential participants of the loan in Bannybank;
  • certificate of income. The document can be requested directly at the banking institution for completion at the place of work.

Obtaining a loan in Bannybank is possible without references and guarantors. It is necessary to confirm your income if, in the bank’s opinion, the requested amount exceeds the borrower’s solvency.

For pensioners who receive a pension on an account in Bannybank, as well as those who receive a salary on a card from this bank, the provision of certificates of income is also not necessary. It will be enough for the bank specialist to form an account statement for the last three months.

If a consumer loan is issued by an individual entrepreneur, then he needs to prepare additional documentation. This package of references will include:

  • certificate of state registration as an entrepreneur. As well as providing a license if necessary. We need exactly the originals;
  • documents confirming monthly incomes;
  • report on cash flow on the current account in a banking organization for the last three months. You can not provide if the activity is carried out without opening an account;
  • tax payment documentation;
  • Also, the specialists of the banking department for registering credit transactions may request additional financial documents confirming the solvency of the potential borrower to determine the degree of risk of such a transaction and the possibility of lending.

Loans for New Companies – Business Loans

A loan for your company!

A loan for your company!

Do you have an idea for self-employment and want to start your own business to create a company that most likely will hire people, but you do not have cash at the beginning? Get a loan for new companies. Now it is easier for money for micro-companies and small and medium-sized enterprises.

Thousands of people setting up a business are facing similar financial problems. However, nowadays banks are happy to meet the needs of novice businessmen and finance their projects in whole or in part. Most banks grant loans to SMEs that already have income and their activity exceeds 12 months. However, there are also those that support completely new business ventures from the first day of entry into the business activity register.

 

Business loans

Business loans

When deciding on a specific loan for companies, please pay attention to the required formalities when submitting the application. The most attractive offers do not require the submission of ISU and US certificates (company registration documents are enough) and the borrower’s statement. No property collateral is required (unsecured). There are banks that offer loans for new companies, business entities and at the same time allow cooperation in the long run. It is based on favorable solutions through a company account.

You can then incur further financial liabilities along with the development of the company on more favorable terms with a reduced interest rate or an increased loan amount. A company account is also a comfortable management (via the Internet and telephone) and free of charge all online transfers to ISU, tax authorities and fees for bills related to running a business. Comfortable and safe. A modern company account gives the new entrepreneur the opportunity to develop and manage the company’s finances.

When looking for a good offer for the company, I suggest getting acquainted with Lietin Bank’s offer. It offers up to 15 thousand. loan for new companies, simplified procedure and credit decision is issued within 24 hours.

To buy a car for a company, we recommend using: Leasing. A lot of possibilities, simplified procedures.