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Loans 60 months – How to do an online simulation?

 

The terms granted for the repayment of a loan can range from a minimum of 6 months to a maximum of 10 years. The 60-month loans are among the most popular as accessibility, above all thanks to a fairly close bond that they maintained for a long period with the assignment of the fifth. In fact, 2005 and subsequent amendments are due to the introduction of the possibility of choosing any duration for the assignment of the fifth, as long as between 24 and 120 installments.

In terms of personal loans, the duration of 5 years (or 60 months) is usually available, except for those forms of loan designed to last a short time because they are linked to reduced amounts. Even for finalized loans, the possibility of being able to choose a 60-installment plan is often at the center of interesting offers, especially in some sectors such as the car and furniture sectors, considering the rather high amounts that must be requested to purchase these products.

Economic characteristics and conditions

Economic characteristics and conditions

For 60-month loans, a distinction must be made in two sectors: loan assignment loans and other personal and finalized loans. Within the latter category we find those connected to the amount requested and those released. For these two types, the differences on interest, on the amount of the installment and on the rates applied can be considerable.

5-year financing: better the transfer or a ‘traditional’ loan?

First let’s go to see the peculiarities that characterize a transfer of the fifth to 60 months. The first is related to the possibility of renewal before the contract expires. Unlike general personal loans, when you want to renew the assignment of the fifth, you must have reached a minimum repayment percentage equal to 40% of the remaining term. However, if a transfer of the fifth with a maximum duration of not more than 60 months has been made and you want to make a renewal to pass to a ten-year period, you will not have to respect any refund quota already made but it can be requested at any time.

Furthermore, even today, for the long-term loans ex Inpdap to finance some specific needs (such as car purchase, birth of a child, wedding, funeral, ceremony, etc.), the 60-month version will have to be chosen for the 10-month version. years is related to other types of motivation.

As for the other personal and finalized loans, this time horizon allows to identify many alternatives, present both in the traditional offer and in the online one. Obviously for the latter it becomes much easier to make a calculation or a simulation, to decide whether to move to a quote and possibly to the actual loan request.

However, we would like to remind you that the estimate is not binding in any way and does not lead to a notification in the system of a pending loan request. Not only that, it represents an indispensable step to fully understand the convenience of one loan compared to another and to allow you to carefully evaluate the sustainability of the installment in light of all the commitments that are already in progress.

Loan Spin Lender, Across Lender and Lite Lender Company

Loan Spin Lender, Across Lender and Lite Lender Company

Spin Lender and Lite Lender Company offer a service to guarantee a quick online calculation but with different conditions not only on the side of the rates applied. If Spin Lender allows to release the amount required by the duration, Lite Lender Company instead maintains precisely this type of bond (for example for low sums it will be difficult to obtain an amortization plan of the maximum expected duration or the 120 installments). However, the 60 installments will almost always be available for low, medium and high amounts.

Simulation 1

We consider a request of 20 thousand USD to be returned in 60 months.

Based on these parameters, with the calculation made on 26-09-2017 on the official Lite Lender Company website, we will have an installment of $ 409.90 with a 8.45% Tan and a 8.79% Taeg.

If we go to consider the offer of Spin Lender instead we will find ourselves in a situation with an installment of 403 USD with Tan 6.91% and Taeg 8.30% (Source: Spin Lender official website – survey date 30/09/2017)

A simulation of this type allows us to understand the weight of ancillary costs given the gap between Tan and Taeg.

Simulation 2

The second example takes as reference a sum of 10 thousand USD to be returned in 60 months. With these conditions we also consider Across Lender.

    1. Spin Lender: installment from 192.10 USD a Tan 4.92% and Taeg 6.45% (Source: Spin Lender official website – survey date 30/09/2017)
    2. Lite Lender Company: installment 194.50 USD a Tan 6.25% and taeg 6.43% (Source: Lite Lender Company official site – survey date 30/09/2017)
    3. Across Lender: installment of 198.01 USD, Tan 7% and Taeg 7.29%. (Source: Across Lender official website – survey date 30/09/2017)

It is therefore evident that for an intermediate duration, as in the case of 60 installments, the differences in the economic conditions on the rates applied become significant with the decrease of the amount, reaching almost 2% less if the requested sum is halved.

Beyond the calculation that can be conditioned by the conditions and rates of the moment, these differences must be carefully assessed, pushing to request the “right” sum (that is the one that is actually needed) and not to extend the duration of the amortization plan more than necessary

Conclusions

Conclusions

The choice that can be encountered when looking for loans to be repaid in 60 installments is wide, going through almost every type of loan, from the assignment of the fifth to the loan aimed at buying a car, even passing through a mortgage. On the other hand, many more evaluations must be made starting from the calculation and / or simulation phase, recommended even before arriving at the actual request for a quote.

Unfortunately, this possibility is not offered by all banks and all financial companies. The problem can be solved by using independent calculators, while paying attention to the rate policy that that company applies. As regards sustainability, on the other hand, the amount of the installment must always be assessed solely on the basis of one’s economic availability, except in the case of the assignment of the fifth where the installment and income ratio by law is tied to the amount of the net income received in average per month.

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Transfer of the fifth 10,000 USD and personal loan.

The personal loan family is large and also includes the assignment of the fifth. This, like other non-finalized loans, has the advantage of not needing to give explanations or justifications to the lending bank to obtain the requested sum. But how does it differ from all other personal loans?

  1. the income installment ratio: this is established by law, without the possibility of derogations, from one fifth of the salary or pension;
  2. the categories of subjects who can request it: public / private employees and pensioners;
  3. the possibility of access also to protestors and bad payers.

What is the amount that can be obtained more easily?

If you are looking for a small loan (understood as a small amount) you are aware that the requested sum will not necessarily be granted, but that it will still be easier to obtain than higher amounts. It is no coincidence that some banks segment the offer of their loans into various tranches based on the amounts to be requested: an example is Cream Bank with the Small loan up to $ 10,000 and Large from 10 thousand to 30 thousand USD.

For the assignment of the fifth, there is no such kind of “prudence” precisely because the installment ratio will act as a ‘reference’ which, as already mentioned, is fixed by law and is equal to 20% of the salary or net pension monthly. So if we think we can more easily obtain a transfer of the fifth 10,000 USD compared to a larger one, we are on the wrong track.

In summary, in fact, the total amount with this type of financing will be conditioned:

  • from the income installment ratio: the amount of the monthly commitment cannot exceed 20% of the net income received;
  • from the chosen duration.

Precisely for this reason, even in the case of the transfer of the fifth, it is necessary to pay attention to the interest rates applied. Indeed, given that generally one assignment of the fifth can also be repaid in 120 installments (without prejudice to personal data limits), the impact of interest expense could be high.

How to get online quotes

How to get online quotes

Online loans allow you to take advantage of the installment calculators, or calculation tools through which you can find the most convenient or sustainable installment to be repaid, and then go directly to the display of the quote: all this does not require registration or filling in forms with own data.

With the transfer of the fifth, however, this aspect is lost. Even in the case of online financial notes such as Good Finance, we immediately realize that the use of the installment calculator is not possible and that you will have to go directly to the request for the non-binding estimate. Let’s take a practical example:

    • Suppose we need to request a transfer of the fifth for 10,000 USD with Good Finance.
    • Selecting the button that sends us to the request for a quote we will find ourselves in front of this page:
  • Going forward you will have to fill in the various pages, with the required data such as personal data, work, etc. It is good to note, however, that it is specified that this is a non-binding quote request;
  • At this point the estimate is obtained directly

This practice is common to many other financials or banks although there may be differences. For example with Unicredit it is necessary to make an appointment at the branch while with Best Bank you will be called back by a consultant on the number entered in the request phase of the quote itself.

Who to ask for quotes?

Who to ask for quotes?

It is clear that as regards a transfer of the fifth of the salary or transfer of the fifth of the pension, the procedure through consultant is considered a cornerstone by any possible bank, financial or brokerage company. The only small annoyance is therefore that of having to turn to various ‘consultants’ before being able to choose the proposal that seems most convenient.

This difficulty can be overcome by taking advantage of some specialized marketplaces, or sites where it is possible to leave your main data to allow the various ‘adhering’ consultants to make more estimates with a single request. In this respect, the Capital Lender service may be interesting. Let’s see how it works:

    • To use the market place, just register and enter the main data (obtainable from the image below).
  • Once this is done, you will have to wait for the arrival of the various estimates (maximum 5) and then evaluate every single proposal from the various consultants and choose the one you prefer. At this point it is possible to proceed with the proposal deemed best, having already communicated the fundamental data and avoiding both the proposer and the potential customer to waste precious time.
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Bank credit – How much does it cost to go red in the current account.

We know well by now how all banking and financial institutions work every day with innovative proposals and products to always attract new customers. From increasingly flexible loans to smart current accounts. However, there is also another tool available to banks to meet customers: bank credit. Let’s find out the characteristics of a Cream Bank loan (the online bank headed by Best Bank) and how much it suits customers.

Difference between credit and loan and Cream Bank credit terms

Difference between credit and <a href=loan and Cream Bank credit terms” width=”660″ height=”660″ />

Let’s start by saying that a credit line consists of a sum of money that is made available by the bank to its own account holder (private citizen or company) when the latter is in the red! To be clearer, the credit line represents the maximum amount that can be used by a current account holder beyond his / her availability on the current account: for example if I have a credit line of 2000 USD and the account balance is 500 USD, I could use the liquidity on the current account for a total of 2500 USD.

The fundamental difference between the credit line and the loan consists in the fact that in the credit line, interest is paid only on the sums used, and for the period of their use. To these must be added some other items of “expenditure” related to the making available of the credit facility itself. Subsequently withdrawals and payments can be managed freely, always within the limits of that amount.

In the case of Cream Bank, there is talk of a maximum of double the net of the credited salary, up to 5,000 USD . In addition, absolutely nothing is paid for funds availability commissions, as well as for the preliminary and credit renewal expenses. As for the interest rates applied: the Tan is at 4.5%, while the Taeg reaches 4.94%. The request for opening and the granting of the Cream Bank credit will always remain free. To be able to apply for a loan, you do not have to go to a Bpm branch but everything is managed online from the personal area of ​​your bank account, always strictly at a distance, thanks to the use of the digital signature.

Requirements and term of the credit line

Requirements and term of the credit line

To qualify for a Cream Bank credit, certain requirements are required. The main one is to have had a Cream Bank account active for at least 6 months. You must then have ordered the continuous crediting of the salary for at least 3 months.

As regards the duration, then, it is necessary to know that the credit limit remains valid as long as the crediting of the salary is maintained. If you want to give a practical example: if you request a credit line for three months and you take advantage of a sum of about 1,500 USD per month, the sum to be paid will be equal to 16.88 USD.

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What are the lowest interest rate loans?

Getting into debt can be a big problem for your financial health, isn’t it? If you need the money and are thinking of visiting your manager, it is important to know the different lines of financing offered by banks.

Therefore, a good solution is to apply for a loan with a lower interest rate – thus, it becomes even easier to organize financially.

Choosing the type of loan that best suits your needs can result in good money savings. After all, requesting it can be a complicated task and turn into debt even greater than the one you had initially. So, this is an attitude that should only be taken as a last resort.

Thinking about the importance of this theme, we prepared this post. Throughout the text, you will discover which are the loans with a lower interest rate and their main advantages. Come on?

How do loan interest rates work?

cash

When applying for a loan, few people seek to understand the fees and charges embedded in the transaction, in addition to interest. For this reason, it is very important to opt for credit lines with lower interest rates.

Easy access to credit and a lack of knowledge about how interest rates work are primarily responsible for the increase in the number of indebted people. Therefore, before signing the contract, it is necessary to be aware of the conditions offered by your bank. This will give you autonomy, in addition to helping you choose the loan and the institution better.

But, after all, how do loan interest rates work? This is the question of many people. They are basically composed of three values: the customer’s acquisition cost, the investor’s rate of return and the cost of the sale.

However, within this calculation, the financial institution may consider other factors, such as credit and market risk.

Therefore, the amount of the interest rate embedded in the loan is charged to protect the bank from possible contingencies that may arise up to the total settlement of the amount – and the greater the risk of default, the higher the fee charged for the money borrowed.

What are the lowest interest rate loan options?

money

The variety of loans available on the market is very tempting, but there are a number of clauses in the contract that must be carefully evaluated in order to meet your needs and take the rope off your neck without making your debts snowball. .

Despite this diversity, it is essential to know how all types of loans work, in order to find the one most compatible with your financial profile.

Below are the loan options with the lowest interest rate and their main features.

Personal loan

Personal loan

A personal loan is a great option for individuals who are paying higher interest on the overdraft or revolving credit card. In addition, it is also an alternative when an unforeseen event arises and you do not have an emergency reserve.

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Why should I apply for a loan from online banks.

 

In recent years, a phenomenon has been taking place in the banking world that is slowly acquiring more and more loyal people: that of online banks. These are banks, equipped with all the tools and services of a traditional bank, but with the difference that full online operations are guaranteed (although in many cases it is possible to go to the branch anyway).

Everything takes place online, resulting in lower costs and greater advantage for customers. Among the services that can be obtained in an online bank there are also those of personal loans. Let’s find out which are the most convenient loans from online banks taking into consideration both foreign banks such as Spin Lender and Italian ones such as Infrabank.

When they happen in collaboration with financials

When they happen in collaboration with financials

One of the most used online bank loans is Infrabank! It allows the customer to obtain up to 30,000 USD refundable up to a maximum of 84 months. The special feature of Infrabank’s personal loan! is to be created in collaboration with the financial Copy Lender. As an indication, on an average loan of $ 5,000, rates are APR at 11.29% inclusive of interest and Fixed TAN at 9.49%.

Continuing our overview of online bank loans, we can remember that of Cream Bank!. The online bank of Across Lender, Lite Lender Company group offers customers different types of personal loans: one of the most interesting is the Hello loan! Project, which can be requested and obtained entirely online, through a digital signature. The advantage over other loans is that it is very fast and effective.

Most popular

Most popular

One of the most popular online bank loans is the “Orange Loan”, a personal loan made available by the Spin Lender online bank that allows maximum flexibility, with the possibility of disbursing amounts from 3,000 to 30,000 USD repayable with personalized plans. from 12 to 84 monthly installments.

In addition, this type of online loan does not entail ancillary costs for the customer (for example, opening and management of the file, stamp duties, etc.) and has rates all in all on average: on an amount of 10,000 USD the fixed Tan is at 7, 95 and the Taeg at 8.36%.