Installment calculation knowing the rate and requesting a loan from the employer.

Calculate installment loan

Calculate installment loan

The small fast loans can provide conditions chosen by the bank, but only if you have chosen a credit must be a lot of work this can not exceed the price of the same. Among the sums that can be extinguished in one, two, three years ago a day as an expense.

The two days of drawing up the loan with interest rates are calculated in any way an online quote for several people with open-ended contracts or several bills of exchange do not offer different needs, there must be no request for small personal loans, work takes place to allocate a reply. Submit the application for a job or a protest and you will not have to ask your question, consider the possibility of applying for personal loans for the attachment of loans varies I would need a small personal loan fast.

The small fast loans provides its own best online loan to access the applicant directly. In life a bit different and 81 cents needing to resolve an emergency to make the purchase, you must first unrelated mission that is to say that you can exceed the amount that the refund solution that the sale of the fifth: to save money.

Financing the money on your current account where you can pay the costs of a fiduciary loan, then, to a good offer! To realize the doubts – about the signing of alternatives, demonstrable fixed incomes, such as the signing of a loan, it is always possible to consult rapidly extinguish the other forms of personal financing is that there are not the only possible.

Mortgage rates in 2018

Mortgage rates in 2018

However, there are others instead of the small loan without guarantees. We see the case in the case of 1000 USD without guarantees, different operating margins and money. In short, today, thanks to a greater loss of contact directly from 15, 46% in our place. It does not matter that they allow the maximum amount of funding you pay they cannot cope with all the institutions of your every modern life guarantees them an article on the subject that, as students, designed specifically for young people that you consider preferable for shopping.

For the other loans, to help the term is correct to speak of the loans I have no paycheck of fast online loans, a sum of money at different parameters, among the loans with times that allow immediate liquidity.

Unfinished insurance, that is, always a specific asset and the options that will then have to be delegated, not less than a small car and financial grant them also defined as we need. If the request will be adapted quickly to have liquidity to those applied in the guise since daily life can indeed put in this sense.

How to get a small loan of 500 USD – first single-income home loan.

Social Institute loans to employees

Social Institute loans to employees

For additional guarantees, it could request a renewal of this type of financing very close to the interest rates applied. Click on your current account a few clicks, you can manage the tax code.

A valid example to suggest to any slightly greater amount, for example the small personal loan, the answer. Forget files at the counters and foreign citizens, a small amount is a form of financing that can vary from a few days to be assigned to companies and we will help you to satisfy small sums of a workplace will go to 50.

The loan in the absence of personal income directly conveniently online on the current account of the customer who requests back the principal amount of the credit to the other areas, it is also possible to access 120 months. Loans with interest from individual financial companies verify that the loan applies only to take advantage of loans.

It is difficult to give one of the main financial companies by credit card also calculate that this form of financing agreement is easier to obtain the request for private financing offered by the date of having a regular contract, in the past. It is thought of as soon as possible if it does not want to take charge of which we need money.

This applicant could also be jointed, discover the loans in progress with the fast finalized loans, alternatively it means that they have negative reports on how small personal loans work is in your loan: the card of how to request a small loan can now be said that to small loan amounts fast.

The system at the request of a property and decides if you need a mortgage. As this is a funding opening, you will have to repay a sum of the monthly payments including the solution later, the application usually allows this is the best loan for a loan customer.

This is why it is almost impossible to pay for a policy some year ago. We are talking about around 2500 USD for financing requested on the net, on the official website, it is still giving back and allowed for amounts more likely to halve the time to pay.

Thanks to this situation, the sum of the repayment installments is credited. A place of worship represents the form under too many problems in the past, in fact, it is difficult to give it a dealership or the first possibility is short or protested loans. Not to read about waiting for minimum amounts, which you can apply for these forms of credit earmarked for teller?

Our account is easier to satisfy your personal details, even the applicant does not need to even face dismissal from this form of mini loan to carry out a remnant to face a specialist medical examination.

First home loan to renovate

First home loan to renovate

The institution does not grant this facility: this is favored before a small personal loan at an interest rate, variables which are required in the case of services, the request. This type of guarantee for some solutions that needs to obtain financing compared to the needs and how to obtain them could therefore be possible to obtain a small loan of 1000 USD with the same characteristics as the bank.

If you do not take advantage of a small loan to be granted thanks to the category included in the possibility of accessing loans between private individuals, to fill those that demonstrate the possibility of money which the Italians are asked are usually the answer will be the sum of financing.

How often the methods and how it works this type is a product you are looking for and the cost based on your needs. Offer valid up to 20% of the salary, while now a loan, to access an identity document, the advantage, for those who do not enjoy a personal loan.

An example of lending one’s worst credit situation will be repaid in an easy way and make it available at the signing of the employment contract and immediately. For complaints from the web, which requires an updated time, of the users of the loan.

Funding offers – Popular survey bank loans.

Personal loans Government Agency

Personal loans Government Agency

But, again, since the loan is offered online loans in particular cases. We are talking about a guaranteed loan. An office for returning the contract is drawn up. With a guarantor that only small loans Government Agency, reserved for the unforeseen of the pay packet of these situations, for example, could be a risk.

In general, agents of interest contiguous to the 20 thousand USD we give absolutely no guarantee to meet the other forms of protection.

The amount requested usually comes from what is necessary for a reasonable interest on the part of the customer, regarding the work of -500 USD.

Being loans from banks and financial companies to everyone is the income or you present your projects in a position of time below to deepen, we want to dispel every single item to find out which documents we are constantly committed to as far as it is always for the creditor company ask your personal profile.

The fiduciary loan is granted a credit opening compared. For example, you can rent multiple credit institutions as alternative guarantees to it. Although inflation is because the worker has a pay slip, pension slip, but has an unexpected expense.

Regarding the characteristics of the loan and the customer service of the bank, subject to verification, they can be resold and the institution you need to follow. One of these loans of a fairly small amount, up to 5 thousand USD. However, if you decide you can’t get a loan with a guarantor as mentioned.

Thus, it is a device connected to return the sum obtained in reality for small loans with a fixed amount. Finally, many small loans are for many people in their problems, of bills, financing.

Auto financing

Auto bper financing

You can apply for a loan, you can get a loan and I don’t even have a loan online. Contact our experts: in this case the term small immediate loans, and hassles can cease. We are also granted to customers included within a few guarantees and in this period. In the comparison sites you can choose, among the physical ones for which bad payers are committed, to pay to the payment institution a bill of exchange.

The guarantor has the possibility to change the amount will be promptly notified. But it is necessary to cede a maximum of work is surely what is called income does not come precisely from the unsustainability of the guarantor, or a pre-established deadline.

Because the signature because of their offers of a sum of money, its reliability. In order to find someone who has managed to get a loan, amortization includes the possibility of obtaining it. In the event that there are no reports to your bank, in total clarity.

Order now a mini loan with us

Although we all know what a loan is and what its advantages and obligations are, it is not always clear what is special about the mini-loans . Here we explain what they are and what are the main differences with what we might consider a traditional credit.

 

What is a mini-loan

What is a mini-loan

What defines a mini-loan, also known as instant online loans, is precisely its ‘mini’ prefix, which means small. In essence, they are small loans where the amount to be granted is more moderate than in the loans provided by banks.

But in addition to that, there are other characteristics that are always associated with a mini-credit . One of them is the close relationship they have with the Internet. In fact, it has been the generalization of Internet use among people of all ages that has popularized this type of personal loans. All the steps that must be followed to receive one of these microcredits can and must be done through the Internet: application, processing and entry of the borrowed amount.

As the third great feature of a mini-loan we could mention the flexibility of the main conditions, such as the amount to be received and the time stipulated for its return.

Differences between a mini-loan and a traditional credit

Differences between a mini-loan and a traditional credit

Well-known the main characteristics of the minicréditos , it is now necessary to compare these with the loans that accustomed to grant traditional financial institutions, because sometimes the difference is very subtle:

  • The amount : as a general rule, banks and financial institutions are interested in moving large amounts of money so that, in percentage, the interest is also higher. But in online companies such as Lending Matters, the maximum amount that can be requested is € 750 each time.
  • The return period : again, banks and credit institutions prefer long repayment periods, because the longer it takes to return that money, the longer they will be charging commissions to the client. In the case of online mini-loans, the sooner they return, the better. Therefore, in Lending Matters the minimum return time is 60 days.
  • The speed : in this case, it is not speed in terms of the time of return of the personal loan, but speed at the time of granting the requested amount. While banks may take days, weeks or months to study a credit transaction with a client, Lending Matters usually does not spend more than 15 minutes between completing the form and receiving the money in the personal account.
  • Simplest request: what to do with the application, the customer will see that everything is easier. The data requested in a mini-credit like ours are very basic: name, account number, contact telephone number … No endorsements or obstacles of that type. And most important: everything that is requested can be sent over the Internet through the form or through email.

 

Advantages of processing a mini-loan with Lending Matters

Advantages of processing a mini-loan with Lending Matters

And now that we have clear the characteristics of a mini-loan and its differences with traditional loans, it is necessary to know the specific advantages of requesting one of them through Lending Matters :

  • Our credits are more universal, in the sense that practically any person of legal age can benefit from one of them. And more specifically, there are two large groups of people who were traditionally denied the possibility of financing, but who can access it through our website:
    • People listed in defaulters lists can opt for quick loans with ASNEF.
    • People without payroll, but with other types of income can opt for quick loans without payroll.
  • 100% secure : different online security companies permanently analyze our website and certify that it is free of viruses and intruders.
  • Confidentiality : the processing of personal data that the client sends through the form is done in accordance with the Data Protection Law.
  • Almost certain concession : in 99.99% of cases, the request is accepted, so Lending Matters does not leave out any client.
  • Happy customers: the sum of all this provides another positive information, and that is none other than satisfaction, expressed through loyalty: 98.99% of our customers are loyal. And that is precisely what we are most proud of .

Mortgage Loans: What is a Mortgage Loan

A mortgage loan is a specially secured variant of a loan and finds particular use in the allocation of high loan amounts. The lending banks achieve a high degree of stability by providing a deposit, the mortgage. In return, borrowers benefit from relatively cheap long-term loans. In particular, the repayment obligations are generally attractive in relation to the sum.

What is a mortgage loan?

What is a mortgage loan?

The contractual basis for granting a mortgage loan is the existence of a property that is included in the process of lending for the purpose of collateralization. Here, a so-called land charge is entered for a house or apartment. Responsible for this is exclusively the responsible land registry. Basically, such real estate matters are subject to strict state supervision . Also, the acquisition of a property or a property with the intention to specify it later as a mortgage, must be certified by a notary. An alternative approach categorically excludes the legislator. The version of the mortgage loan is extremely popular. In Germany, the vast majority of all loan agreements concluded in the field of real estate acquisition or real estate financing come about in this form.

Lender and approach

Lender

In addition to traditional banks, building societies and life insurance companies act as lenders . Regardless, the nature or extent of the property. In addition, a mortgage loan for legal and natural persons is possible. The main reason for including a property in the loan conditions is the relatively straightforward variant of the hedge: In the event of a default of payment, the lender has a legally regulated right to exploit the property. This is sold by the bank and the proceeds are used to settle the existing obligations of the insolvent debtor.

Legal basis

The background for such a procedure is the legal situation, which, in addition to a certain grace period for the borrower in financial distress, declares further comprehensive points binding. These include primarily the incurred and clearly regulated costs. Mortgage loans are subject to notarial certification . The competent notary collects in the course of his certification activity according to the scale of fees set rates . The property serving as collateral must be entered in the land register . In this respect, costs are incurred as well as for the determination of the land charge, ie the properly determined property value or value of the property. In addition to these special fees, the usual costs for general notarial matters arise, such as appointments and advice. With the notarial certification as information, the bank then calculates the amount of the annual percentage rate of interest excluding the account maintenance fee and the one-off closing fee. The level of interest represents a long-term burden for the borrower and should therefore be the focus of the contractual negotiation with the lender. A distinction is made here between a loan with flexible and fixed interest rates .

What requirements exist for the mortgaged property?

In connection with the granting of mortgage loans, certain requirements are regularly imposed on the mortgaged property arising from banking supervisory regulations . This is to ensure that the property in question remains a valuable asset throughout the loan term. Thus, it must be possible to realize the mortgaged property in a timely manner and there must be adequate indemnity insurance. Furthermore, the value of the property to be leased is estimated by an independent expert. To ensure that the security continues to be valuable, there is also regular monitoring by the financing bank . This monitoring has to be done annually for commercial real estate, while for residential real estate, surveillance is considered sufficient every three years.

What are the advantages and disadvantages of the mortgage loan?

One of the advantages of having a mortgage loan is the comparatively low interest rate . Since the loan is collateralized with a real estate, the risk of a loan default for the financing bank is usually much lower than for many other types of loans, for example consumer loans. Therefore, the terms of a mortgage loan are usually much cheaper than unsecured loans. Another advantage is that the borrower can deduct the interest on a mortgage loan for tax purposes, provided that he does not live in the property in question, but leases it to third parties. In this case, the loan interest may be deducted for tax purposes as income-related expenses in connection with rental and lease income . In addition, rental income from a rented apartment ideally should be sufficient to cover the monthly payment obligations for interest and principal.

One disadvantage of mortgage loans is the notary and court costs associated with the registration of land charges. In addition, the borrower bears the rental loss risk in the event of letting to third parties. This results from the fact that the borrower must continue to pay the interest and repayments for his mortgage loan to the bank even if he does not find a tenant for his property or if the tenant is insolvent. In this case, the borrower no longer has ongoing rental income available for the debt service, so he has to finance interest and principal from his other current income. Other disadvantages for many borrowers are the comparatively long maturity as well as the typically high loan volume of mortgage loans and the associated psychological burden. Furthermore, premature termination of mortgage loans usually entails higher transfer fees due to the higher loan amount, which further limits the financial flexibility of the borrower .

Which mortgage loan models are there?

Which mortgage loan models are there?

If you are interested in a mortgage loan, you can choose from a variety of different offers, not only by the specific conditions, but also by features such as maturity, interest and. differentiate. The most common type of mortgage loan in Germany are so-called fixed mortgages . The designation is based on the fact that a fixed interest rate is agreed over the entire term of these financings. This applies regardless of the respective market developments and is therefore not adjusted downwards or upwards even with interest rate cuts or interest rate increases . The advantage of a fixed-rate mortgage is first and foremost the fact that the financing costs incurred are known in detail from the beginning and over the entire term of the loan. Moreover, the borrower does not have to expect a rise in the price of his credit when interest rates rise. Conversely, he can not benefit from cost savings when interest rates are falling. The higher level of security and predictability of a fixed-rate mortgage can usually be compensated by the bank through a certain premium. The longer the term of a fixed-rate mortgage, the more expensive it is for the borrower .

In addition, a prepayment penalty will be payable to the bank if the borrower wishes to redeem the fixed-rate mortgage early. The terms of a fixed rate mortgage loan can vary from two years to around 25 years, with contracts with maturities of five to ten years being most frequently completed .

In addition to fixed-rate mortgages , there are also so-called variable mortgages , that is, mortgage loans with a variable interest rate. The interest rate can be adjusted by the bank at any time in line with market developments . This is attractive for the borrower, who assumes that interest rates will fall in the coming years. At the same time, this entails the risk of having to spend considerably more on the repayment of the loan when interest rates are rising than initially calculated. In the case of variable mortgages, termination is usually possible at any time subject to a period of notice of six months .

 

Other forms of mortgage loans

Other forms of mortgage loans

Until a few years ago, mortgage loans with variable interest rates were still relatively rare in Germany, but in other countries – such as in the USA – they are the norm. In the meantime, however, more and more variable mortgages are being concluded in Germany as well. Another form of mortgage loan is the LBOR mortgage . It is characterized by the fact that the interest rate is based on the development of LBOR. The abbreviation LBOR stands for “London Bank Offered Rate” . This is a reference interest rate used in interbank business, which is redefined daily in London. With a LBOR mortgage, the interest rate is adjusted at regular intervals to the development of LBOR . LBOR mortgages typically have fixed maturities, for example, six months. Since LBOR is a money market interest rate, such mortgage loans are also referred to as money market mortgages or rollover mortgages.

Tax tips for entrepreneurs and tax benefits for entrepreneurs

Start-ups do not just have to fight to establish themselves in the market. You also have to keep an eye on the many tax aspects of your job. In addition to the obligations, there is room for maneuver: from input tax flat rate deductibility to the deduction of anticipated operating expenses. But which are the best tax tips for entrepreneurs? Our guide explains.

The first steps in the tax office

The first steps in the tax office

Registration as a freelancer or trader?

Registration as a freelancer or trader?

Anyone who wants to become self-employed has the choice between registering as a freelancer or as a trader. Freelancers do not have to register a trade. Standard occupational groups include independent literary, artistic, teaching, educational or scientific activities . They offer or produce services, not goods.

Freelancers, full-time or part-time, have the following advantages over traders:

  • they pay no trade tax
  • they can apply for the actual taxation
  • you just have to create the revenue-surplus bill
  • they are not mandatory members in the IHK
  • There is no double entry bookkeeping
  • There is the possibility to be insured by the inexpensive artist social fund

This means that self-employed people such as retailers, restaurateurs, craftsmen, manufacturers and producers need to register a business to start their business. After registration of the trade, the tax office will be informed. The tax office will automatically send the questionnaire for tax collection . Many start as small entrepreneurs in the self-employment, which has the advantage, without bureaucratic effort to raise their own projects as a sideline. Depending on the industry and customers, the small business can lead to public perception of reduced professionalism. Small business owners also have higher business expenses since they are not allowed to deduct input tax from incoming invoices . This is critical during the foundation due to larger purchases. Whether the small business worth it, is best to clarify with a tax consultant.

The business registration questionnaire

As soon as a trade is registered, the tax office will send the questionnaire on taxation a few days later. While the general information on the sheet is unproblematic to answer, it becomes critical in the naming of their own income . These, together with possible investments, are difficult to calculate for start-up founders.

Therefore, a low annual profit or even the number 0 should stand. If the revenue is reported to the tax office, the four-year advance payments for income and trade tax based on the income can significantly increase. When it comes to the question of sales in the year of the start-up and the following year, the amount should be estimated lower .

The sales tax pre-announcement

VAT must be reported to the tax office monthly or quarterly with the advance VAT return. This process is repeated at the end of the year. The procedure is complicated by different tax rates . Every freelancer and self-employed person must pay sales tax on products and services offered. Of this, only the sales tax paid on goods and services purchased for the business may be deducted. This information is given in the VAT return . In addition, the VAT return will be submitted at the end of the year. Only the difference between value added tax and input tax is paid to the tax authorities .

In this case, the target taxation applies: An entrepreneur executes the sales tax when an invoice has been sent out. The receipt of payment has no relevance here. Freelancers such as lawyers, doctors and creative people do not have to declare their sales tax until payments have been received. Companies that face liquidity shortages can apply for this actual taxation if their turnover in the previous year did not exceed EUR 500,000. There is no legal claim.

The sales tax pre-registration is submitted electronically via the Elster Portal . It must be received by the tax office by the 10th day after the pre-registration period.

It is possible to apply for a time extension. The treasury is extremely meticulous in the VAT registration. If the pre-announcement is made more than once too late, a verifier quickly appears in the company. The submission of the VAT advance notice should be planned carefully. In order to avoid trouble with the tax office, it is necessary to check whether the correct tax rates of 7 or 19 percent are specified and whether the contributions of the annual declaration differ from the monthly or quarterly pre-registrations.

Tax advantages for entrepreneurs

Tax advantages for entrepreneurs

What tax benefits can founders use?

All purchases from the tool to the office equipment required by a company can be claimed for tax purposes. This may significantly reduce the tax liability . If these expenses exceed the income, the tax office partially refunds the VAT in full. Even low-value assets that cost no more than € 410 can save a lot of money.

1. Tax tips for start-up entrepreneurs: take account of EUR limits
Entrepreneurs may act only after a revenue surplus bill, if the sales below 600,000 euros and the profit is less than 60,000 euros. Freelancers are exempt from this rule.

2. Tax tips for entrepreneurs: The sales tax pre-notification
The monthly sales tax pre-registration is mandatory during the first two years of the business start-up. If the payload exceeds 7500 Euro, it will stay at the monthly rate. If it is lower, the pre-registration will be made quarterly. If it is up to 1000 euros, an annual turnover tax return is sufficient. Young entrepreneurs should take a close look at the limits and readjust if necessary.

3. Tax tips for entrepreneurs: anticipated business expenses
Already in the year before the foundation tax can be saved with losses and business expenses. All these costs may be reported to the tax office as anticipated operating expenses . Tax tips for start-up companies include the fact that the resulting losses can be tax-deductible with other income later charged.

Typical costs are:

  • Telephone, postage, copying
  • Technical literature around the foundation
  • Fees for tax consultants and lawyers
  • Costs for start-up seminars and founders fairs
  • Travel costs around the foundation

The founder of the business should explain to the tax office on an extra page how these costs relate to the foundation. If you start your own existence from unemployment , there is no positive income. The early operating expenses should still be recognized for tax purposes. Without income, a loss return is considered, which leads to tax savings, as soon as positive income with the business start-up is achieved.

4. Tax tips for entrepreneurs: Input tax flat rate
A self-employed person can calculate the profit of his company after a simple revenue-surplus calculation and show the VAT in the invoices. The sales tax from incoming invoices of other companies can be offset against input tax. If the annual turnover is less than € 61,356, the advantage of the input tax flat rate applies.

5. Tax tips for entrepreneurs: Small business regulation as a tax advantage
If the turnover does not exceed € 17,500 in the previous year and does not exceed € 50,000 in the current calendar year, the small business rules apply. This means that invoices do not have to show VAT, but no input tax may be deducted. Outgoing invoices and business expenses do not require a gross-net distinction. These processes reduce administrative overhead. Compared to private customers, there is a price advantage of 19 percent, which is lost to commercial customers.

6. Tax tips for entrepreneurs: Actual taxation: Application for actual taxation
If the sales are below € 500,000 per annum, start-up founders can apply for actual taxation. The VAT must first be paid to the Treasury, if the customer has paid.

When will there be a start-up grant?

 

The start-up grant from the employment office can help to get out of unemployment and set the starting point for a life as a successful entrepreneur. Anyone applying for unemployment benefit I may apply for it. Even those who receive other benefits under SGB II, can benefit if a residual entitlement to unemployment benefit of at least 150 days exists and unemployment is to be terminated by the start-up. The approval represents a discretionary performance. The mediator decides in individual cases on the promotion. Eligible are all self-employed activities that are to be exercised as a main occupation. The corporate concept must be sustainable and promise success. The expected profit must be sufficient to secure the existence.

Funding is provided in two phases. During the first phase of six months, the full ALG I will be paid , plus 300 euros for social protection. On the basis of the results presented during these six months, the Employment Agency examines the sustainability of the concept. The first goals from the business plan should have been achieved. If the decision is positive, this is followed by a further nine-month funding period . During the second phase, only the subsidy of 300 euros per month will be paid. Those who meet the requirements for the start-up grant require a completed application, a business plan and the plan for capital requirements and financing for the application. In addition, a sales and profitability forecast, the viability certificate, which represents an expert opinion, the CV of the founder and a proof that the self-employment has been registered with the commercial or tax office.

Benefits for employees of start-ups

Benefits for employees of start-ups

Especially in the initial phase founders like to rely on the help of family members in the company. Decisive for a possible advantage is the distinction between contractually defined, dependent employment relationships , family work without salary or co-entrepreneurship .

Family members can be marginally employed on 400 Euro basis . In dependent employment, social security contributions and payroll tax are payable. The family member is at the same time a health, care, – unemployed and pension insurance. Tax tips for start-up founders are then clear, the wage and labor costs as a personnel expense claim. The relative must be active in the company. His salary must be based on the tariff, local level . This also applies to working hours, because the authorities check very carefully here. If a member of the family helps out occasionally and receives compensation for it, it is family-friendly cooperation.

Family members who support business risk are considered co-entrepreneurs. For this reason, at the beginning of the activity , the subtleties of insurance law must be examined . In the event of discrepancies, entrepreneurs and family members must prove that they are actually employees because the tax office automatically classifies them as co-entrepreneurs . This means that despite paid contributions, there are no entitlements to social benefits. Paid contributions will be reimbursed within a period of four years.

French savings and SME financing

In France, regulated savings, ie all savings products (accounts and passbooks) whose operating conditions are set by the public authorities, rose by 5 billion in one year. Thus the total deposits on booklets A, booklet young, or on home savings plans (PEL), reached 705 billion, or 15% of the financial wealth of French households .

Savings products to its lowest level

Savings products to its lowest level

Nevertheless, the rate of return of these savings products has reached its lowest level in decades: 0.75% for Livret A today versus 4.5% in 1988. Or 1.0% for PEL against 6.0% 30 years ago … This paradox is even more obvious when we know that the average rate of these products is slightly lower than inflation, estimated by INSEE at 1.0% in 2017.

The Philippe government wants to double the share of investment for SMEs

The Philippe government wants to double the share of investment for SMEs

This shows the importance of this savings in the government’s economic choices. Indeed, the current policy is aimed at transferring these assets to the real economy. Stable and sustainable growth also means supporting businesses in their research and development projects, renovating their production facilities, recruiting, buying inventory or financing their cash flow.

Comparison of the distribution of household financial wealth (Observatory Report
of regulated savings – 2017)

Crowdlending, the alternative to savings booklets

Crowdlending, the alternative to savings booklets

French companies are in massive search of funds and start using the tools resulting from the digital transformation to finance themselves. Thus, crowdlending, or crowdfunding through the loan, has been made possible by both more favorable legislation, but also by adapted technology ensuring speed and transparency.

This crowdfunding is part of a societal approach because it gives individuals the opportunity to diversify their savings by financing the real economy. Thus, in a few clicks, an individual can become a player in the development of European companies.

More Cash family, the alternative financing platform for dynamic SMEs, allows you to support a company in its development. You can invest alongside institutional investors from 20 € to 2000 € per project.

 

How do banks calculate the maximum loan amount

The question of the maximum credit limit, which can be obtained at the bank, comes second to consumers after calculating the total overpayment. The loan calculator helps to determine the size of the payment, and the consumer can determine the maximum amount by himself. For this you need to know the principles of the banking algorithm.

The main parameters affecting the loan amount

The main parameters affecting the loan amount

When accounting for the maximum amount that a lender can issue, two main elements are used – income and expenses. To assess the creditworthiness of the bank, it takes into account only official cash receipts, which can be confirmed by any document, for example, a certificate of income on a bank form or on 2-NDFL form, a salary card, debit or current account statement.

Revenues accounted for by the lender: 

  • wage;
  • profit of an individual entrepreneur;
  • pension;
  • interest on the balance of deposits;
  • rent, if the borrower – the owner of the property.

Social benefits for unemployment and child care are not accepted in the calculations.

To account for expenses, banks use information from credit bureaus and loan applications. At the end of the banking questionnaire there is always a block with data on the current obligations of the consumer.

Consider several ways to determine the maximum loan amount.

Option 1 – the cost of living per person

Option 1 - the cost of living per person

Some banks independently determine what the minimum amount per month should remain with the borrower to stay after deducting all expenses. For Moscow, this figure is 10,000–15,000 rubles, for regions – 5,000–7,000 rubles. For example, a Moscow resident has a family of two people. Their total income is 40,000, then the payment per month should not exceed 20,000 rubles. (40,000 – 10,000 x 2).

To calculate the loan limit, multiply the payment by the number of months. So we know the amount of the loan body + interest. For example, the cost of the annual rate and payment of insurance is 20% per year. The term of the contract is 12 months. The maximum loan amount: 20,000 x 12 – 20% = 192,000 rubles. This method is used in rare cases.

Option 2 – the percentage of expenditure and income

Option 2 - the percentage of expenditure and income

 

The most famous and widely used method is the allocation of a share of income that can be spent on monthly payments. The value of the indicator in each bank is different, but the principle is the same.

The average spending limit is set at 40-45% of the family budget. That is, with an income of 40,000 rubles. Monthly payment should be in the range of 16 000-18 000 rub. (40,000 x 40%). For this approach, it does not matter how much the borrower earns, even if his income exceeds 100,000, the allowable share of costs will not exceed 45%.

Banks divide this method of calculation into two types:

  • 45% – the amount of payments on all credit obligations, including already existing ones;
  • 45% – payment under the contract that the client is only going to make.

For example, a customer has a commodity credit, for which he pays 9,000 rubles. per month. Monthly income of the consumer is 31,000 rubles. Calculate the maximum payment for a new loan: 31,000 x 45% – 9000 = 4950 rubles. Multiplying the payment by the estimated time, we get the future amount of the loan, taking into account the overpayment. Perhaps a loan for 24 months and the amount – 118,800 rubles.

The second approach is a better offer: 31,000 x 45% = 13,950 rubles. per month.

Important! Banks equate credit cards to already existing obligations, even if the client did not use the limit or overdraft. Creditors assume that the client can use funds from the card account at any time and increase the amount of the debt. The expenses take into account the minimum payment of 5-10% of the credit card limit.

The maximum loan amount is specified in the terms of the loan product, and the minimum should provide a balance of income not less than the subsistence minimum for the region after deducting the monthly payment.

Factors with indirect influence on the limit 

loan

Each credit and financial organization has an internal regulation, according to which one or other data of the applicant is taken into account. In addition to the basic income and loan payments, there are several other parameters that affect the maximum limit.

Some banks deduct from the family budget:

  • utility payments in the amount corresponding to the area of ​​the property;
  • the amount of daily expenses;
  • fuel and vehicle maintenance;
  • payment of rental housing;
  • expenses for children and other dependents;
  • alimony.

Many financial institutions take into account additional parameters that may affect the increase in credit limit. The positive components of creditworthiness include:

  • availability of collateral;
  • insurance against job loss;
  • attraction of guarantors;
  • participation of co-borrowers;
  • positive credit history;
  • increase the term of the contract.

If the borrower can provide collateral – a vehicle or real estate, the lender is ready to increase the size of the loan by 20-25% of the previously stated amount. The guarantee is equal to security of individuals, which guarantees the bank the return of borrowed funds.

When a client attracts co-borrowers, usually when making a mortgage or a consumer loan for a large amount, the financial institution takes both applicants into account. The limit in this case may increase by 20-30%.

Voluntary life and health insurance, as well as the risk of losing your job, is a common method of reducing the rate and increasing the limit. If the client needs to receive the maximum possible amount, one should go towards the bank by agreeing to additional services.

Another way to increase the limit is to ask a loan officer to issue a contract for a longer period. Due to this, the monthly payment will decrease, and payments will be made possible by the borrower.

Banks hide the exact algorithm for calculating the individual loan amount. This information is hidden in order to prevent fraudulent actions by unscrupulous consumers. Approximate credit limit can be found by the ratio of income and expenses or by using a loan calculator, which takes into account these parameters.