DON'T SETTLE FOR A LOAN!!!...it would be cheaper... - news on real estate, Kiev, Kyiv region. Real Estate In Ukraine
If you are thinking to take a loan on a car, equipment or repair, do not rush to agree on a standard...The advantages and disadvantages of non-earmarked Bank loansIf you are thinking to take a loan on a car, equipment or repair, do not rush to agree on a standard trust loan. No, we are not in a hurry to blame the banks that offer you the most inconvenient and expensive special credit. Just always need to consider your options.And we offer you to try to take your specific goals... non-earmarked credit. These banks give loans, we can say, uncontrollably, then there is no check on what exactly your money went. The main thing вЂ” to prove to the credit and solvency. But trust loan (auto, on repair, on TV) to spend money on a purpose other than the default specified in the contract. Or rather you can, but for this you can pay the penalty, the increase in lending rates and even the requirement to repay the loan early.Three to choosePurpose loans banks give three types: credit cards, cash loans and secured loans. Credit cards вЂ” the convenient thing, and today many open credit cards not only to intercept money to pay, but also to buy expensive equipment or make repairs. The interest here range from 20 to 40% in local currency (banknote banks open only in the national currency). A little expensive compared with current rates on foreign currency mortgages (12-16% per annum in dollars and euros), but the high rates are offset with comfortable repayment scheme: make your map work need each month to make only the minimum payment (3 to 10% of the amount of debt accrued interest), even though no one stops to extinguish the debt faster.With regard to cash loans, in most cases, banks set on them tolerable percentage (25-40% in local currency), but glean the yield high commissions (2-3% per month of the amount of the loan, resulting in 45-65% in recalculation on annual). As a result, the overpayment on the loan can increase to 60-70% of the loan amount and even more.Alas, both of these options are not very suitable for large purchases вЂ” no credit cards, no cash loan banks usually do not give large amounts. To get a decent amount of credit here will require proof of income, with a rather large, from 4 to 5 thousand UAH and higher official wages than few can boast.We must takeThe most suitable option in this case is a no-purpose loan secured by real estate. Such non-earmarked credit has one major advantage вЂ” it is cheaper than standard trust loan program for the purchase of cars, equipment, trips to resorts or repair. Compare for yourself: loans secured by real estate under banks offer 13-17% in dollars plus 1-2% fees, cash loans (only in local currency!) get 25-40% per annum plus a rather big Commission. Even a car is more convenient to take a loan secured on dwellings, as rates on car loans by 0.5вЂ”1% higher than for non-targeted.In addition, the loan secured housing facilitates access to credit. If for example, a car loan, you do not have enough income, then the apartment as collateral for repayment of the loan may more than cover the Bank's claims to the collateral. Usually banks issue non-earmarked loans in amounts up to 70-80% of the value of the collateral, that is, if you have a flat price of $100 thousand, then the Bank can issue you up to $70-80 thousand and a loan of $10-15 thousand and not be a problem.Fly in the ointmentTrue, and deficiencies, and any nuances in non-earmarked credit a lot. First, to take such a loan more difficult than, for example, a consumer or a car loan. Here you actually have to go through the procedure of obtaining a mortgage loan, that is, to collect documents, to evaluate, to enter into a pledge agreement, to pay the notary and the assessor, and at the same time to submit to the Bank a certificate of salary with great official salary.Second, because the loan is secured by housing, there is a risk that you housing... will lose. This can happen if you stop paying on the loan and the Bank will be forced through the courts to achieve the sale of property. It should be understood that the costs of the Bank for the recovery of the debt can be more than the debt itself, and it is possible that after selling your home and paying for the services of lawyers, from your apartment will remain small horns Yes legs.Thirdly, getting a loan (not only the target, but in General any), should be prepared for the unexpected. Let's assume you buy a car on a loan secured by housing. In such case the Bank does not require you to buy insurance for the car (CASCO and "motor") that would be mandatory for the recipient of the loan. Many in this situation, bragging about the experience, saying, I am an experienced driver, and without insurance will cost. Such negligence in the event of an accident will lead at least to the fact that you will have to pay on the loan and for car repairs, which may be too expensive for you. The saddest outcome is still the same sale.As you can see, troubles can be significant.