Only a small number of banks have specially designed consolidation loans, and most offer regular cash loans to clients. In a situation where more and more citizens and businesses are becoming more indebted and the central bank is working to strengthen (delayed) consumer protection in relation to banks, few are interested in taking on new obligations.
One exception is personal finance consolidation loans that reduce multiple loans to just one. Only a small number of banks have specially designed loans for this purpose, while most offer regular cash loans to clients, according to a poll by Good Finance
Up to 30% maximum on hands
Citizens who want to get their finances in order and instead of paying a variety of banking fees and interest to pay only one Fyre bank offers a loan “From minus to plus”. It is intended to close a minimum of two obligations of credit users and family members for loans they hold at Fyre or at other banks, leasing, credit cards, overdrafts, taxes, contribution obligations, overheads, etc.
The specialty of this loan is that which is purely dedicated. The money from the loan is paid directly into the account of the creditor or the borrower with the obligatory proof of closing the liabilities, and up to 30 percent of the amount can be realized in cash. This type of loan is subject to client status, which includes an open checking account and regular monthly receipts, and a guarantee deposit and a fee can be paid from the loan.
The loan can be raised up to $ 25,000 without a mortgage, for a term of 10 years at a fee of three percent and an effective interest of 10.55 percent. For amounts in excess of $ 10,000, the bank seeks out collateral such as a 10 percent deposit or life insurance policy, housing savings, a guarantor or units in Fyre’s mutual funds.
Special Purpose Loans
And HPB has a specific loan to close its liabilities to one bank or another. The loan can be raised up to a maximum of USD 50,000 in dollars equivalent, and a maximum of 10 percent can be made in cash without documenting the purpose. Guarantees are not required for amounts up to $ 7000. The maximum repayment period is 15 years, with the possibility of a grace period of up to three months. The interest rate on the loan is 9.89 percent annually, and the fee, depending on the use of other products, ranges from 2.25 percent of the loan amount.
Non-purpose credit is the solution for consolidation at Volksbank. It can be raised in dollars and USD with a repayment period of up to 12 years. The interest rate on a non-purpose USD loan is in the range of 8.8% for clients, and for a loan in dollars the annual price is 9.3%. For such a loan, the fee is 2.5%, which may be reduced depending on the type of loan and in which bank the debt is refinanced. Basic insurance is consent to the seizure of salary and promissory notes, and depending on the loan model, the bank may request a risk insurance or a life insurance policy, a guarantor or a loan repayment guarantee with Good Lender.
Other large banks offer mostly non-purpose loans to clients. In ABC, existing liabilities can be refinanced under the terms of standard loans, which means that repayment of existing loans is only one of the purposes. A home loan can be realized for repayment of an existing one if its purpose matches, that is, if it is a purchase, an adaptation … For other purposes we offer mortgage loans or non-purpose loan up to USD 25,000 for 10 years.
By the end of the year, interest is fixed at 10.13 percent with a processing fee of up to 2 percent. A non-purpose loan at ABC can be raised up to USD 150,000, without guarantors with interest from 8.5 to 9.45 percent (nominal), up to 3 percent compensation, and the bank requires a loan insurance policy or life insurance. For clients who open a current account at the Hypo Bank by March next year, the possibility of a more favorable cash loan is offered.
The loan is limited to USD 70,000 and does not require guarantors, it is approved for a repayment period of seven years, for which the client will pay an interest rate of 9.69 percent and 1.5 percent of the fee. In Baba there are extensions of repayment, change of repayment method with the remainder of the principal value, deferrals, change of currency, restructuring of short-term liabilities and combinations.