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Apr 28,2019

Chep Money and Cheap Loans

The interest on loans has been in the basement for quite some time and recently there is even the first loan , in which one pays back less than you get. The reason for this, from the consumer’s point of view excellent credit market situation, is the fact that even the banks can obtain cheap money from the European Central Bank. This cheap money is then brought in the form of interest-free loans “to the man and / or the woman”. Anyone who accesses installment loans or mortgages to finance long-held wishes is undoubtedly profiting from those historically low interest rates. Banks would therefore have every reason to adjust the interest level of their loan offers according to their own possibilities of the current situation – in as transparent as possible. But that does not happen. Because with a type of credit, which enjoys a high popularity among consumers because of its simplicity, neither the interest nor the conditions are transparent. The speech is from the credit line .

Zinnief pulls past the credit line

Anyone looking at the market for out-of-pocket loans quickly realizes that the interest rates for a credit line have changed virtually nothing compared to an installment loan. The nationwide interest rate for a credit line is still around 10 percent and has moved in the 2-3 years just behind the decimal point. On top of that, banks often do not even feel compelled to communicate the interest rate on the disposition loan they offer in a reasonably transparent manner. And this despite appropriate reminder from the policy in this case to put a greater transparency on the day. But that keeps the institutes very different. From this it follows that, as already mentioned, it is often not really clear how the dispossession of some financial institutions actually comes about.

Interest level for the credit line almost unchanged

After all, German consumers pay around 9.78 percent interest effectively per annum for a used credit line. If one compares this value with that of the previous year, it can be stated that the interest rate moves down by just 0.13%. Determined by a comparison of the conditions of a total of 1,433 banks. In view of the general interest rate situation on the German credit market an almost ridiculous development. What is particularly striking in the context of the evaluation is the fact that, in particular, regionally active financial institutions estimate a particularly high interest rate on their credit facilities. In terms of figures, the majority of regionally active banks averaged around 13% a year on average for an out-of-pocket loan, with direct banks often well below the 10% mark.

Transparency in costs for the credit line is heavily dependent on the bank

First of all, even if there has been little change in interest rates overall, it has become much clearer for bank customers compared to recent years how the bank’s current disbursement rates come about. The reason for this is the Payment Accounts Act, which came into force in 2016. On the basis of this law, financial institutions are required to clearly, unambiguously and conspicuously disclose the amount of interest on the Internet. But what is fixed on paper does not necessarily mean complete implementation in practice. An independently conducted test by a renowned financial magazine revealed the following:

For five of the institutions examined, the interest rate for the testers was not apparent at all . For others, the dispots were under key words such as “residential real estate credit policy checking account” or “Wunschkredit”. For a bank, the interest rate for the credit line is only communicated on the online presence.
Some banks seem to map the level of their discretionary interest according to the pattern “reference interest rate plus mark-up of x percent “. As a result, the bank retains a “flexibility” that is not immediately apparent to the customer in the interest calculation.
For others, the disbursement depends on the creditworthiness of the customers . The worse the credit score, the higher the interest rate.
Another way of getting around one’s own determination: Some banks will no longer lower their disbursements as soon as the reference interest rate falls into negative territory.
The fact that even if the reference interest rate is negative the disparities can still increase is shown by the case of a regional bank, for example. This had since the last investigation increased their dispensation by almost two percent, in which they simply changed the corresponding clause . From the premium of eight percent on the reference interest rate was unceremoniously ten percent.

by Ora Wagner

Apr 23,2019

BENCHMARKING: HOW COMPETITORS CAN HELP GROW BUSINESS

Benchmarking: Read more about the method used to make your business grow by observing competitors’ practices when building their internal strategies.

The verification of the results of other companies to measure internal processes takes place through benchmarking. This technique was and is widely used by companies from different market segments .

Benchmarking emerged on the American Xerox. In the 1970s the company was already doing research on its competitors and using the data to improve its results. But it was the Japanese who optimized the tool and used it to dominate the auto market in the 1980s.

Today, benchmarking is a widely used concept in the corporate world. Managers at all levels make their use for both strategic and routine activities. Understanding the power of this tool is critical to improving a company’s bottom line.

After all, what is benchmarking?

Benchmarking is the process of evaluating the behavior of other companies for the creation of new internal strategies. With this technique, you can fine-tune your own methods and performances. The idea behind the methodology is to be inspired by what is working and to avoid what has not produced good results.

The use of benchmarking as a management tool can benefit your company with the experience of other ventures. Companies can check who is getting the best performances and put the observed result as an internal goal. It is a very practical way to choose goals, because it is known that the result is achievable.

An example already mentioned above is Xerox, a pioneer in this technique. The manufacturer dismantled the equipment of its Japanese competitors to understand how they were able to get below-market prices.

In short, the process is a detailed research that allows comparing services and methodologies used by competitors. By using this technique it is possible to improve the level of operation. Benchmarks can be established for all types of operations and all sectors can benefit from this tool.

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The types of benchmarks and for which each one serves

There are basically 5 types of benchmarks used as a management tool, each with its specific purpose, they are:

Internal Benchmarking : This type of benchmark is characterized by the use of the organization’s own standards as indicators targets. As an example, we could use the case of a company that opened a new branch and sets as goals for it the results already obtained in the matrix.
Competitive Benchmarking : This is one of the most famous benchmarks. In it, the reference point is built from competitors’ results. It is observed who is getting better performance in a given activity and uses its results as a goal.
Functional Benchmarking : This type of benchmark prioritizes processes, that is, the result of a specific activity. It can be applied within the organization itself to compare similar processes in different areas. An example would be the delivery time practiced by logistics teams within the same carrier.
Generic Benchmarking : This model seeks to handle similar processes, but in different business activities. An example would be the delivery time of a particular product, the model company being an ecommerce footwear company while the follower is an online electronics store.
Collaborative Benchmarking : Here the goal is of collective improvement in relation to a specific goal for a group of companies. One example would be the goal of reducing the emission of gases by an association of steelmakers. All will work together to achieve the collectively set goal.

How to benchmarking?

There is no cake recipe for competitive benchmarking , however, a few steps can help you organize and implement it in an assertive way. The main ones are:

Internal evaluation : Here, business processes and practices are evaluated to understand where the organization is and where it wants to go. At this stage it is also intended to understand how the organization learns, that is, what is the best method of approaching the desired results.
Identification of companies or processes of excellence : At this stage, a survey should be conducted to identify who is best positioned in the activities considered important by the organization. In the past this process was slow and costly, but today with the internet, you can find lots of quality information for free.
Identification of the methods of improvement practiced in the market : After identifying the “champions”, it is time to understand how they got there. This can be done with research, simulations, questions and so on.
Definition of the method of reaching the desired result : Here we study the best way to achieve the result practiced by the “champion”. It is the phase in which the answers obtained in the 1st and 2nd stages are integrated.
Implementation of a plan of action: Once the method to be used has been identified, a plan of action must be generated to achieve the desired result. The plan should be written with practical activities with dates and responsible.
Feedback: Following the implementation of the action plan, the result is observed and compared to the goal. If it has been reached, an improvement plan is started. If not, a correction plan should be drawn up.

Is benchmarking possible in markets with little data released?

Until a few years ago, benchmarking was an activity for large companies, as data searches were expensive. Today, with the internet, things have changed, it is possible to do research and get a plethora of data for free. In addition, research institutes have made online content available, making professional information much cheaper.

Therefore, it is possible that companies practice benchmarking at reasonably good response levels, using data obtained for free or very cheaply.

Benchmarking is an excellent strategy for organizations that want to learn from mistakes and successes from other companies. However, it is necessary to understand that good management is made of many tools, this being only one of the very effective ones available today. Not always the results observed externally will give the same result for your company. Therefore, caution and planning is required to use this methodology.

by Ora Wagner

Apr 20,2019

The Advantages and Disadvantages of Each Way of Paying the Loan.

Every borrower needs to know that there are two ways to pay the loan contracted from a bank: by the descending rate method or the median of the equal rates. Even if both refunds are fair and legal, there are many aspects that differentiate them and which constitute advantages for debtors according to their profile and objectives, but also to the ability to repay money.

Thus, it is advisable that the decision regarding the choice of the optimal reimbursement option should relate to a detailed analysis of the advantages and disadvantages of each way of repaying the borrowed money.

The most important aspect to be taken into consideration is that the two methods of payment of a loan are compiled on two debtors’ profiles, differentiated, first of all, from the income earned in direct correlation with the amount of the desired loan. For example, a client with a lower salary will not be able to access a very large amount if he chooses to repay the money in descending rates.

The word from the elderly “can not be with the lips and the bacon” is very well applied in the case of the way of repayment of the loan, since a debtor can not “enjoy” at the same time the advantages of the two variants – equal rates or decreasing rates, but will only have to satisfy the privileges generated by one of the financing payment models.

How to calculate credit repayment in equal installments

In this situation, the bank will include only a small share of the principal (the borrowed money) in the monthly installment, during the first part of the repayment period, the dominant difference being represented in this way by costs (interest plus commission charged to the principal remaining to be surrendered). As time passes, the proportion of the principal in the total value of the rate will increase, reversing the ratio in the component parts of the tranche (see photo below). In the case of equal rates, the debt to the bank (the money actually received) goes down at a slow pace.

How to calculate your credit repayment in descending rates

In this situation, the principal is divided into equal installments, the monthly installment being composed of such a principal installment and the costs incurred on the money remaining to be repaid to the bank. Even if the amount of the payment is about 20% higher than the equal rates, as can be seen in the picture below, as it advances during the repayment period, the client will pay a monthly installment ever smaller. At the same time, it is worth mentioning that the debt to the bank is constantly decreasing with the same value.

Equal rates: You can access a larger loan, but the price paid will be about 15% more expensive, and early repayment becomes almost unnecessary

By way of refunding money in equal installments, the bank can finance a larger customer, as the calculation method ensures that smaller installments are applied at the beginning of the repayment period than in the case of declining rates. How ranking in the debt is done using the first credit rate, it goes without saying that if the rate is higher, the amount that can be granted will automatically be lower.

The advantage of getting more consistent credit comes with some inconvenience. First, the client will pay almost exclusively interest and commissions in the first part of the contract, the actual payment of the loan being made only after the first half of the repayment period. This is a new drawback, namely that early repayment can no longer be beneficial to the debtor.

Another disadvantage of repayment in equal installments is the cost of the loan generated by this model of calculation, as interest and commissions apply to a considerable principal, which diminishes slowly in the first half of the credit agreement. Thus, by mirroring two 50,000-euro loans for 20 years in the two payment options, we can see that the client will also pay about 10,000 euros for the same refund. For the repayment of the down payment loan, the first installment will be about 554 euro, and the last installment will be just over 210 euros, while the total amount paid at the end amounts to almost 92,000 euros. In the case of equal credit payment, the monthly installments will be approximately 430 euro, the amount repaid after 20 years being almost 102,000 euros.

The reality on the ground shows that the overwhelming majority of debtors in Romania chose to pay their debts in equal installments, mainly because of the low income level that would not allow the Romanians to access significant amounts of money if they opted for downward reimbursement . In view of this, it is clear that we can not talk about a bad policy of banks, for which loans at equal rates are indeed more profitable, but about a peculiarity of the local economy where salaries are much lower than developed countries.

Decreasing rates: you pay less per total but the monthly burden is considerably higher, making your credit less accessible

The calculation of paper shows that the repayment of a downward credit is the optimal option, given the total cost of financing and the way the loan is extinguished over time. Even if in theory things look perfect, in practice the situation is radically changing for most Romanians who can not access the money needed in this formula because of low incomes.

In order to be able to access the amount it needs in decreasing rates, it is important that the applicant is not pressured by the need to rank in debt and that in order to benefit from this freedom it is necessary to receive a considerable monthly income that will allow him the desired financing .

The closest conclusion is that every thing in life has its price: decreasing rates impose lower income customers on the amount of money borrowed, and equal rates mean somewhat higher costs. In both credit repayment options, to win something you have to give up something else.

credit education finance equal rates corporate loans credit descending rates

by Ora Wagner

Apr 1,2019

Debt repayment Schemes } Time Needed

According to current information from the Federal Statistical Office, around 3.1 million German federal budgets are clearly over-indebted. This means that around 7 million Germans with an immense debt burden (over 30,000 euros) have to fight and that over the years. On average, a period of almost three years is necessary to ensure that over-indebtedness can be repaid in Germany – provided one uses all of his income to repay debt as a debtor.

Debt increases among consumers

Debt increases among consumers Taking into account only the debt figures reported by a recognized debt counseling service in Germany in 2014, these numbers give an average debt burden of 34,504 euros. However, the actual value is likely to be higher because, albeit not perfectly verifiable, many people carry their debts without turning to a debt counseling service. Again, the debt burden of over 34,000 euros on average refers only to the reported over-indebtedness.

The reasons for a debt

But what are the reasons why German citizens are so over-indebted? This question can also be answered quite clearly: Thus, with almost 19 percent share of job loss cause number 1 for over-indebtedness. Followed by a costly separation or divorce, loss of income or limitation due to accident and / or illness, an inefficient housekeeping and a failed self-employment. In particular, the point of “uneconomical housekeeping” stirs attention, because here is the main trigger of over-indebtedness too high a credit burden through disposition and consumer loans. Consequently, German citizens tend to indulge in more goods than you could actually afford !?

More than 3 years needed to pay off debts

More than 3 years needed to pay off debts If you just assume that about 1020 euros could be used to repay debt every month, it would take about 34 months until the 34,500 euro debt burden on Heller and Pfenning has been paid off. Since the repayment amount of 1020 euros per month, however, seems rather utopian, so the real duration of the debt repayment should be rather 6-8 years. Always provided that permanent, a stable income for debt repayment is available.
By the way: Anyone who thinks that the younger generation is more often “in the dark” is penalizing the current statistics on over-indebtedness, because exactly the opposite is the reality. The older the people are, the higher the debt is!

Our conclusion

As a provider of mini-loans and short-term loans, of course, we have an interest in helping many people out of a financial emergency situation as quickly and easily as possible. Nevertheless, we only appeal to all our clients to take out a loan if they are sure that they will be able to repay it to us as agreed. Because we do not want to contribute to growing over-indebtedness with our loans.

by Ora Wagner

Mar 29,2019

Loan Unsecured Loan for the Company and Background Studies

What is a credit rating or score and why is it important?

If you want to apply for a loan, they will make almost all lenders in the background explore and track your credit profile. This operation is helpful so: the lender will get a fair summary of your credit situation and you will be able to estimate, likely to come when you are working on payments while you can be assured that your credit rating is good enough for you to by default estimate.

If the lender does not fulfill the credit check, there may be a situation where the person would otherwise not be able to pay the loan, however, and eventually issued to both sides of the problem. Credit history and bad credit rating in Estonia is practically impossible to get a loan .

In fact, Credit Estonia AS Estonia’s 700,000 unique payment default entries for individuals and businesses. This black statistics, at least half of Estonians, are in trouble with debt.

Because all this loan application created by telegraph.ee is the credit score of each loan applicant. This can be done either on the lending company Eesti AS, ordering a credit report or the lender itself. In the latter case, the lender takes into account the applicant’s income and expenses and assesses how likely the borrower may later be in payment problems.

The internal credit score is particularly popular on the co-financing platforms created by the credit score lender to help investors make better decisions.

How do I create an individual credit score?

Above all, we can track credit through Estonian AS Krediidiinfo – it is well known that all of the credit that we recently got an international name, but it is still the most important credit information manager and official credit history records administrators.

Credit will prepare an unsecured loan for a corporate credit report that will allow you to assess your ability. The cost of this report is € 6.50.

E-safe allowing all people to check their credit history and show lending to someone who has checked their payment background. Surveys themselves are absolutely free.

The Individual Bonus Report consists of the following items:

Total credit rating scale superficial, fair, good, very good. Illustrates the probability of credit risk. Lowest estimated probability 16.1 100%, but only very good rating from 0 to 1.9%!
Population information or general personal information
Payments Register Information – Enter Total Retrospective Payments Over The Year And Frequency Disruptions During This Period
Tax liability balances all related information with the Tax and Customs Board
Existing language activities (or owned by your company are bankrupt and can you disable business?)
related companies
Information about property or real estate breakup
Official communication – related case studies or other sanctions.

Credit information is also available for individual payment report , shows completed and pending payment difficulties and their size.

What are payment difficulties and how do they occur?

Payment Disruption Entry is a government debt that is the official currency in the registry. The record can be made if the page consists of the other party facing a non-contractual liability that has exceeded the 45-day payment deadline , with interest, and everything else more than 30 euros and is not contested.

Payment Notes are amended in line with the balance of changes in debt and it ends when the debt is fully paid – in this case, the default payment date is when the debt is paid.

Credit history, it is important to understand that the information contained in the payment default record is there for almost three years after the completion of payment default or unpaid taxes.

If the payment default is entered by the credit institution, the credit history, banks will see more 5 years after. This means that if a payment default entry is created once already so that it is not quickly released, and payment lending is almost impossible, so this is a long time limited economic life.

Official Payment Alarm Index – Reliable?

Credit Estonia AS is engaged in the official credit history record of the 2001 Estonian banks created by the registry, which is the most loaned, either by lending a phone service contract for leasing or renting products.

Thanks to the credit register, it is also easier for lenders to follow the principle of responsible lending – if the register is a payment default, then no loan is available.

Do you always count on a payment disorder register?

The payment register must be cautious.

This is not a court backlog approved, but added to the company’s debts. While it is believed that in most cases due to a reasonable down can not be guaranteed a hundred percent , the payment postage is completely correct. The amounts may not be quite accurate or it is totally wrong, either human error or deliberate. If you see a payment, it cannot be one hundred percent accurate, which is why you should check the detailed information.

As mentioned earlier, you can get the default E-safe means absolutely free . Send a safe return from time to time to keep an eye out to make sure everything is okay. Better safe than sorry!

making a background

E-credit is not the only place made for background checks. The background can be checked by a number of other companies through websites – for example through Taust.ee or Inforegister.ee.

If the information in the registry is mainly provided for complete information about the companies and their individuals you Taust.ee created directly on the background check.

Taust.ee page provides information on both payment defaults and obligations, as well as court decisions and building boards, taxes paid and other important information to evaluate the company. In addition to page information, etc., private credit information, there is also a letter of payment problems.

Why is it important to have a thorough background check?

Obtaining a loan for background research is clear – there is no persecution but a remedy to help people maintain a better standard of living. Background research should be done, but even if the fees are a contractual relationship with the company, for example, you start to work with a new unit to claim the service or you are somehow related to the company.

Making background research only takes a few minutes to take, but gives you valuable information on whether the company is worth relying on money issues or not.

The reasons are more!

If you are a company that is actually in a state of tax arrears and many other economic problems, it is likely that the company may have difficulty paying wages – if it were not in such a good position to prevent and prevent problems?

If you subscribe to an Internet provider, or something else, wouldn’t it be nice to know that the contractor is doing well and is able to meet his financial resources? So if the registry data Taust.ee means you can see the basic information for free and a few pieces of information can be very important.

Though its decisions are not made in exchange for a very short interview, it is still the starting point to help make rational choices and hopefully avoid debt disputes.

Credit Score Properly And Want To Take A Loan?

If your credit score is okay – maybe you have no credit history and your financial situation is stable – you don’t have to borrow significant obstacles . After all, wait for the lender: you can repay the loan properly.

But the wise choice of doing and staying away from expensive loan fishing! We are ranked among the most popular Estonian lenders at their expense. Throw down the button until you look at all the lenders and loan at affordable prices.

Get a suitable loan!

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by Ora Wagner

Mar 13,2019

REAL ESTATE LOAN REDEMPTION SIMULATION

Simulation repurchase of real estate Hans Brinker amrani Hans Brinker013-0Hans Brinker-06T16: 39: 30 + 00: 00

The repurchase of Hans Brinker, also called consolidation of Hans Brinkers or consolidation or restructuring is a financial means to answer to a situation of overindebtedness. Indeed, for a person who has accumulated too much debt, the redemption of Hans Brinker is the best solution to reduce the amount of monthly repayments. The purpose of the Hans Brinker redemption is to reduce the overall amount of all monthly repayments. This reduction in monthly payments, however, leads to an increase in the repayment period. Performing a real estate mortgage redemption simulation allows you to easily find the best deals.

As operation, the repurchase of Hans Brinker consists in renewing one or more already existing Hans Brinkers against a single Hans Brinker, at a lower rate and having a fair amortization over a greater period in adequacy with the incomes of the borrower.

The repurchase of Hans Brinker allows individuals to find a durable and stable solution to their excessive debt. A repurchase of Hans Brinker followed by a reduction in monthly payments pushes the load back chronologically. Finally, the borrower therefore trades in the short term for his debts against a larger long-term debt. Simply use the real estate loan redemption simulator above to speed up your steps and get a real estate mortgage buyout at the best rate .

There are many types of Hans Brinker repurchases including the purchase of professional Hans Brinker, the repurchase of Hans Brinker by sale-purchase with repurchase, the repurchase of Hans Brinker owner, or the repurchase of tenant regrouping many Hans Brinkers with the consumption and finally the repurchase including real estate loans and consumer Hans Brinker.

Subscription to a mortgage repurchase

It should be known that the repurchase of real estate Hans Brinker includes all the real estate monthly payments plus the Hans Brinkers of the consumption of which the affected Hans Brinker, the revolving Hans Brinker or the personal loan and other. This repurchase of mortgage is done in the optics to exchange the old monthly payments for a single loan whose rate is more advantageous. In addition, this Hans Brinker consolidation, which is the repurchase of real estate Hans Brinker, includes a cash flow that makes it possible to finance any project or to anticipate a need.

Although, in general, the repurchase of mortgage often includes a mortgage, the repurchase of Hans Brinker thus becomes mortgage. Instead of repaying a high-rate home loan, the buy back of a loan can take advantage of a lower rate to reduce the total cost of monthly payments, reduce the repayment term, or reduce the amount of monthly repayments. . The downward negotiated rate thus saves money and alleviates the cash flow of the over-indebted borrower.

The different types of repurchase of real estate loans

There are two choices regarding the purchase of home loans. The first choice is internal renegotiation while the second is external renegotiation. As for the internal, this is done with the financial institution from which the debts were initially contracted. With respect to external renegotiation, as the name implies, it is made to another institution other than the one to which the debtor has made the loans. It should be noted that the first choice is rare because the banks have difficulty in granting a different and lighter rate than the one previously agreed with the borrower. That’s why people wanting to buy real estate loans are turning to external renegotiation.

Costs incurred for a mortgage repurchase

In short, there are three charges related to a real estate loan redemption, including early repayment benefits, new guarantee fees and the application fees. Regarding the application fees, these are equivalent to about 1% of the amount borrowed. Prepayment benefits represent approximately 3% of the remaining principal and for the new guarantee fees, they represent no more than 5% of the amount borrowed and constitute a guarantee for the financial institution granting the redemption. performed by the debtor. It is to know that for the expenses of file and the new expenses of guarantee, these can be revised downwards even cancel if there are convincing arguments and heavy on the balance.

The interest of using a Real Estate Broker for a loan buyback: You should know that it is not easy to build a file in the context of a buy back Hans Brinker. Indeed, it takes time, know-how and experience. This is where the broker comes in. The latter also known as an intermediary in banking operation is the professional trader with financial institutions. Knowing the tricks of the trade, the broker will be able to highlight the file of a borrower and thus find a repurchase of mortgage corresponding most to the financial profile of the borrower, but also to the expectations and expectations of the latter.

Real estate loan redemption simulation

It should be noted that financial institutions do not have the same rate or the same repayment term for mortgage repurchases. Indeed, like any investment institution, everyone has their margins and preambles for a mortgage repurchase. Different offers, different rates, but also various monthly payments and various repayment periods. The best way before subscribing to a real estate loan buyback is to perform a real estate buyout simulation in order to compare offers. The realization of the application for repurchase of real estate Hans Brinker online avoids the borrower travel to save time.

The advantage of an online quote request is that it is completely free and fast. The borrower can compare many quotes and opt for the repurchase of real estate Hans Brinker that suits him while taking into account his monthly income, the interest rate and the repayment period.

The repurchase of mortgage is a suitable option for borrowers who have exceeded their limit of payment. Typically, an over-indebted borrower who does not resort to a Hans Brinker buy-out rarely does it. The advantages of a mortgage purchase are many and allow a reduction in monthly payments, but also the lower repayment rate according to the negotiations. Only the short-term period of old debts becomes a long repayment period for a single debt.

by Ora Wagner

Mar 11,2019

Consumer Advocates Criticize Residual Debt Insurance for Loans

When it comes to consumer credit, the insurance companies in this sector are increasingly involved. After all, residual debt insurance has long been standard practice for many loans. However, the consumer advocates in Germany have now sounded the alarm. Because in their opinion these are usually overpriced.

What is a residual debt insurance for a consumer credit?

Before we go into the detailed criticism of the consumer advocates, we first look at the residual debt insurance in detail. It is well known that after taking a consumer credit, one or the other can get in the way, which prevents repayment of the loan. Be it a serious illness or job loss, there are no guarantees in life. But who takes up a loan, of course, has to repay it. In the cases mentioned, the residual debt insurance now jumps in. If the consumer becomes insolvent, the insurance takes over the loan. Incidentally, this also applies to the death!

Bundesverband der Verbraucherschuetzer: Remaining debt insurance overpriced

By now, residual debt insurance for consumer credit in Germany has long been part of everyday life. According to current calculations by the Association of Consumer Organizations (VZBV), just under 2.5 million corresponding contracts were signed in 2017 alone. On average, the sum insured was just over 10,000 euros. However, these insurance policies are too expensive – according to VZBV. A current position paper of the consumer advocates states: “Remaining debt insurance policies are overpriced products with incomplete insurance coverage, some of which are sold in a dubious sales context.” A question from Alliance 90 / The Greens in the Bundestag revealed that in 2015 there were around 5,000 insured events in which insurers stepped in. The share was just 0.3 percent!

The detailed criticism of consumer advocates

The detailed criticism of consumer advocates According to the consumer advocates, the residual debt insurance is a voluntary addition to the loan agreement. However, according to consumers, consumers would often be told that a loan agreement would only be concluded if the hedge was additionally completed. Thus, many borrowers enter into two separate contracts that are independent of each other, without being aware of it. In addition, the insurances offered are sometimes only equipped with a patchy protection. The Federal Association of Consumer Advocates cites as examples:

The death benefit relates only to illnesses that occurred after conclusion of the contract.
In fixed-term employment, unemployment insurance does not apply.
When terminating a permanent employment relationship, the protection of the insurance often takes six months!
Inability to work mental reasons usually play no role.

Banks secure additional income

Banks secure additional income But it is not just the scope of benefits that consumer advocates see critically. The amount of agency fees is therefore critical. According to VZBV, the premium is even at 80 percent. Already years ago, the Nuremberg Regional Court classified a residual debt insurance of 15.6 percent as alarmingly high. Likewise, the actual costs are often unclear. Because the settlement of the amount of the residual debt insurance takes place as a one-time payment. Nevertheless, it is usually added to the sum insured. Thus, the one-time amount increases the loan amount. This allows the bank to collect additional interest income that is borne by the customer.

Federal Government wants to limit final commission

However, the Federal Government wants to intervene here. The final commission should be capped at this point to a maximum of 2.5 percent of the insured sum. At least this is what the Federal Ministry of Finance plans to do. However, such a legal regulation is not necessary in the view of the Deutsche Kreditwirtschaft (DK). Because the banks in Germany had recently published a commitment to more cost transparency. Andreas Krautscheid, chief executive of the banking association, said: “We are convinced that these measures are suitable to improve the credit insurance in many aspects and to provide the best possible consumer protection, without the need for a new legal regulation. The residual credit insurance has its justified place in the product range of the banks and savings banks. “

However, it was important that the remaining credit insurance in a needs-based advice tailored to the customer needs. In the opinion of the DK, a flat-rate statutory limitation of the insurance premium in relation to the credit does not meet individual customer needs. Because this does not only depend on the individual risk of the credit / policyholder. But also from the respective hedging level.

By the way, residual debt insurance does not play a major role in mini- loans and microcredits in Germany. But since the periods of the loans are very short, such insurance would make no real sense.

by Ora Wagner

Feb 22,2019

Interest Rate of Mortgage Loan Book

Interest rate of Sacombank bank loan in 2018

Product	Interest rate	Maximum loan	Tenor
Home loan	8.5%	100% demand	20 years
Borrow a car	8.5%	100% demand	10 years
Borrowing business	8.5%	100% demand	flexible
Borrowing agricultural production	8.5%	100% demand	5 years
Borrowing consumer mortgage	7.8%	100% demand	15 years
Borrowing securities business	7.49%	100% demand	5 years
Student loans	7.8%	100% demand	10 years

Loan benefits

The interest rate for Sacombank loans is very favorable from 7-9% / year .
Customers can easily get loans up to 100% of demand.
Lending term is flexible and flexible, depending on each product, helping customers reduce the burden of debt repayment.
Support many types of collateral such as real estate, red book or assets to buy.
Simple mortgage application, customers can be disbursed on the same day.
Customers are consulted by a team of professional staff and guided by the procedure.

Conditions for loan approval

Customers mortgaged at Sacombank must be Vietnamese individuals and households.
Customers are aged from 18 to 60 years old.
Customers can prove their income, ensuring their ability to repay the bank.
Have secured property by yourself or by guarantor. Security assets are real estate, red books, savings books, or assets intended to be purchased …

Profile required procedures

Request for mortgage loan according to Sacombank’s bank form.
Copy of ID card, Household Book, Confirmation of single or marriage registration certificate (if any) …
Documents to prove income: Labor contract, payroll with confirmation of the agency, Salary account statement …
Documents to prove the purpose of loan: apartment purchase contract, receipt of deposit for house purchase …
Records of collateral: red book, savings book, guarantee of real estate owner.

Mortgages at Sacombank are a better choice for customers who want to seek large capital, flexible time and low interest rates.

, So, do not hesitate, send registration information of mortgage mortgage at Sacombank now so that our counselors can quickly call for advice, free support on the day!

by Ora Wagner