All information about Loans
What are Loans
A Loan is a contract between two natural or legal persons (companies) through which one of them, called the lender , delivers an object or amount of cash to another person called the borrower under certain conditions that must be collected in the document signed between the parts.
In the case of Loans to get Money, which is where we will focus in this article, the contract must detail at least the following aspects:
- ✅ Identification data of the people involved, name, surname, ID, Address, marital status, etc.
- ✅ The Loan Amount or Loan Principal
- ✅ The maturity of the operation and if there are intermediate repayments or periodic, monthly, quarterly installments, etc.
- ✅The Interest Rate that will be applied to the operation.
In the contract it is also convenient to add other clauses such as the expenses of the operation and who pays them, payment of penalties for non-compliance, if there are other commissions and expenses, if it is intervened before a notary public or notary and the courts that would be used in litigation case.
Difference between Credits and Loans
Definition similar to what a Loan is would be the case of credits. However, there are substantial differences between contracting a Loan or Requesting a Credit and therefore, other clauses will be specified in the contract.
In the Loan, the borrower receives the entire amount of the operation at one time and the agreed interest begins to be paid from the first moment. Once the contract is signed, the money is received in that act and a commitment is made to return the capital and interest in periodic installments or it can even be agreed to return everything at the end at maturity.However, in credits, both parties sign a contract whereby, the lender makes available to the borrower a certain amount of money or limit of disposition but not necessarily all of it is available at the moment and said dispositions can be made as needed.
The advantage in this case of loans is that no interest is paid until the money is available and only interest is paid for the part willing. However, there may be a commission for the non-disposed patent.
Receiving money in the form of Credit is cheaper because only interest is paid for the capital available
Types of Loans
There are several types of Loans depending on the purpose, the interest rate that is applied and other characteristics. These are some of the classifications that are known of Credits and Loans:
They are known as Personal Loans because the person who receives the money, responds with all their assets and income. There is no other real or mortgage guarantee, but in the event of default, the bank or lender can garnish all your present and future assets and income.
In the case of mortgage loans , the owner, in addition to responding with all his assets and income, provides a real guarantee that could well be a home, a place, farms or lots that guarantees the operation and in case of non-payment it would be seized by the bank or financial prior to foreclosure and authorization of the corresponding judge.
In recent years there have been quite a few online financial companies that offer money through so-called fast mini-credits or microloans . In this type of operation, small amounts of money are loaned. Generally, they do not exceed 1.00 us dollars although the most common is 300 us dollars maximum in a first operation.
Loans with Credit Checker
It is known by the name of Loans with Credit Checker those credits granted by Banks and Financiers to people who appear in lists of defaulters. In other words, at some point they stopped paying a previous debt, either for another loan or for non-payment of an invoice or receipt for purchases or services rendered.
- The advantage of Quick Loans is that they take little paperwork, do not ask many questions and pay the cash in 10 or 15 minutes.
Interest rates charged on the Loans.
The interest rate is the amount that the bank or finance company charges for lending your money during a certain period of time and at a certain cost.
The interest rate will depend on several factors, among them, the amount of the Loan, the term to repay and mainly the solvency of the applicant and the price of money or Euribor at the time of the contract or start of the loan.
There are two types of basic Loans depending on the chosen interest rate:
Fixed Interest Rate:
Hiring a personal loan at a fixed rate is the most common. As these are short-term operations, you can choose a fixed fee for the entire period and banks prefer this alternative. The fixed interest rate of a personal loan can be approximately between 6 and 9 points above the Euribor. For example, at present, a Loan could be contracted at 6.50% interest.
Variable Interest Rate:
Although it is less common, many variable rate loans are also contracted. To choose this form of interest, it is usually done in operations of great value and in clients with good financial training who demand this option.
If the variable rate is contracted, two terms are established, one fixed, which is usually during the first year and the other at a variable rate during the rest of the years. Obviously, as it is variable, a legal reference index is sought and known by both parties, which is almost always the Euribo r and to it is added a differential that will depend on the negotiation with the bank. Let's say that a difference between 3 and 4 points would be a good option.
Free loans without interest
It is also possible to find interest-free loans that does not mean that they are free. For example, when a quick loan is requested to pay in a very short term such as the Payroll Advance, the bank does not charge interest but receives a one-time commission that is sometimes more expensive than the interest itself.
Likewise, in the financing offered by stores and shopping centers such as El Corte Inglés, they make deferred sales without interest because they have their own benefit in the sale of the product
Ask the Bank to inform you of the APR Interest that calculates all expenses, commissions and insurance that the Bank includes
Requirements to Request a Loan
Banks and finance companies require meeting a series of requirements to grant credits and loans and among them the following can be considered:
- ✅ Age between 21 and 70 years. At the final maturity of the loan or last installment, the holder should not be more than 70 years old.
- ✅ Present a valid National Identity Document - DNI- or resident card.
- ✅ Not be in RAI or Credit Checker delinquency records or in any case justify it reliably.
- ✅ Have periodic income for various concepts, payroll, rentals, income or business in the case of self-employed.
- ✅ Submit documents for the study and analysis such as payroll, income statement, deeds of apartments or premises, bank movements of the account or passbook, other income certificates, quarterly VAT and irpf declaration in the case of self-employed, etc.
Having all the documents prepared and meeting the requirements makes obtaining your Credit much faster
Expenses you have to sign a Loan or Credit
Requesting a Loan in the case of being approved and signed is not free and in addition to the usual interest that must be paid, the loan contract has other costs such as:
- The fees of the Notary Public or Notary Public in the event that the contract between both parties is intervened.
- Commissions charged by the bank before delivering the money as the opening commission: Usually between 0.50% and 2.50% and minimums are also usually set for small loans. Study commission: This commission can perfectly be included as an opening commission since it is the initial expenses but it is another way of charging by the bank. Cancellation commission: Which can be partial or total cancellation and it is a charge that the bank puts in the event that we return the money earlier than expected. Modification commission : If during the time that the loan lasts we want to make any changes such as the due date, the installments to pay, increase the amount, etc.
Where you can request Credits and Loans
Currently there are several companies where you can access to apply for a loan and it does not necessarily have to be only in banks. You can ask for money at
✅ Banks and Savings Banks . It is the traditional method and the most recommended. Banks have strict control of the Bank of United States , their interests are affordable due to competition between banks. The tranquility and security is greater and we have at our disposal a long network of physical offices in any city or town in the United States. Currently, the entities that have the highest volume of individual financing are the large entities in the United States: La Caixa Personal Loans, Bankia Loans , BBVA Credits and Banco Santander Personal Loans.
✅ Financial : It is another good option different from that of the banks as long as we opt for perfectly known companies, with full identification, that their address, NIF, telephone number is known and that they can speak directly with one of their commercials. This would be the case of Financieras like Cofidis or Cetelem.
- In the case of financial companies, there are online companies that operate through the internet. Although all the processing is done online and the money is received instantly, in the same way we must be sure that they are duly legalized companies.
✅ Private lenders : Before the appearance of banks, there were already private lenders. People who lent their money in exchange for a return. Nowadays, with the advent of the internet, there are many people who advertise as lenders but they are mostly scams. Taking advantage of the anonymity of the internet, these people take advantage of people in need and offer money easily without asking for guarantees or income because their only intention is to deceive the applicant.
- The only option to ask for money from individuals on the internet is through one of the online crowdfunding web platforms where people who lend money join. The case is the same, we must ensure the legality and solvency of the web.
In this link we show you a list of all the bank offices where you can request a mortgage. Select the bank and office closest to your home or work center: Bank Offices
Compare and request online quickly and safely the best credits and fast loans online that you can find on the internet thanks to the HowLynn Credit loan list. Every week we will update the list with the best loans voted by our users so that you are informed of the best credit offers before anyone else.
At the beginning of this page we show you the main financial companies that are dedicated to granting fast loans online by crediting the money to your account in a few minutes. The cost of loans with immediate payment into account is quite high because although they are charged for small amounts, having to return the money in short terms, the APR is very high.
Important: Be careful when asking for money. Ignore offers received by mail or messages from facebook, washap or offers on ad pages and forums
However, these urgent mini-credits can be an emergency solution to solve unforeseen payments such as a car or electrical appliance repair, paying a bill and even indulging yourself with the purchase of consumer items:
And then a series of articles with information on each of the credit modalities and below, a selection of the aforementioned financial ones that you can access in the file section of each of them to request your credit. As we indicated above, you must take into account the high cost and interest rate plus commissions that this type of Entities receive and ask for the money only when the need is unavoidable and the rule to follow that we always advise not to give advance money to anyone since it could be a scam: