How can I avail a forward loan.

 

If follow-up financing for the property is needed in the foreseeable future, a forward loan, with which one can secure the interest for the future, can be the perfect form of loan. Few consumers are financially able to fully repay their real estate loan in just one round of financing in ten, 15 or 20 years. Most borrowers need another loan after the fixed interest period has expired, which then runs for just as long.

Advantages of forward loans

Advantages of forward loans

Forward loans, which means advance loans, allow borrowers to plan their follow-up financing if they take out a new loan in times of low interest rates, but only use it when the fixed interest rate on the first loan expires. Many forward loan providers can do this for up to 60 months in advance. But the longer the lead time, the higher the interest premium that the banks charge.

You apply for a forward loan and conclude a contract if the first round of financing is still ongoing. This way, you can secure the low interest on the second loan for a relatively small premium without having to use it immediately. However, you are also obliged to take out a forward loan at a specified time, even if the interest rate development was such that the interest rates are currently much lower than the interest rates that were secured at the time. If a loan is not taken, the customer has to pay the bank a non-payment fee, which can cost a lot of money.

If the bill works and interest rates have actually risen, the consumer has the advantage that he can use follow-up financing that has significantly better terms than is currently the case. That means the customer won the bet, because it is actually nothing else if you want to secure low interest rates with a forward loan.

Thousands of customers have recently lost the bet

Thousands of customers have recently lost the bet

But of course the customer does not always win and that is also the risk that he bears with the conclusion of a forward loan. Currently, many customers have gambled away, who had been betting on rising interest rates since 2009. Today you have to take out loans from banks that are significantly worse in terms of terms than loans that are currently being taken out.

Nobody could have known that and could not even guess that the low interest rate phase would continue for so long and that interest rates would go even lower. If you convert this into USD, many consumers suffer losses in the three- and four-digit range.

In June 2009, forward loans, which were taken out 36 months later, cost just over 5 percent interest. Today, you only pay a little over 3.1 percent for such loans. These are additional costs in USD of almost 20,000 USD with a loan amount of 100,000 USD.

Conclusion

Conclusion

A forward loan can result in high interest savings if interest rates rise. However, since you cannot look to the future reliably, it can always happen that even experts who expect interest rates to rise are wrong, as is currently the case. The other way round, it should be noted that interest rates are currently as low as never before, so it might be worthwhile today to secure these low interest rates with a forward loan in the future.

Is it difficult to apply for a loan for low earners?

Life always costs money and so it is not surprising that many take out a loan to cope with all costs or to fulfill wishes. Banks make loans quickly, making it easy to get money.

However, banks don’t see every customer as a borrower they trust. Many do not meet the basic requirements, so banks then reject a loan application. It is the same with low-income earners who find it difficult to apply for a loan.

What makes it so difficult to apply for a low-income loan?

What makes it so difficult to apply for a low-income loan?

One of the basic prerequisites for banks is attachable income so that the loan can be secured. If this income is too low, banks classify the borrower as a risk person and rarely grant a loan to low-income earners. The salary of a low earner is often too low, so that not all fixed costs and an installment loan can be repaid. If you have no money left, you cannot pay monthly installments and will therefore not get any chances in lending.

Can the chances of getting a loan be increased?

Can the chances of getting a loan be increased?

Because low-wage earners are lacking an important prerequisite for applying for a loan, they have to try to increase their creditworthiness. In this way, the borrower can provide a surety so that he can get a loan for low-income earners. In any case, this guarantor must demonstrate a fixed income and a permanent employment relationship. The income must be so high that banks can apply for garnishment if the loan installments fail.

The guarantor therefore takes a risk, because the fact that the actual borrower cannot always pay his installments is very high. He would then be liable for the loan and not many people are willing to do so. Another option for low earners is to use their life insurance.

Banks only take this as security when the surrender value exceeds the loan amount. If all else fails and there is no other security, only a private loan remains. Many private individuals offer a personal loan on the Internet, but these often have high interest rates. The family can also grant a personal loan that would be interest-free and thus the costs would be manageable.

Conclusion

Conclusion

Getting a low-income loan is not easy, but it is doable. Different options should be examined and used so that collateral can convince a bank to grant a loan.

How do loans with a guarantee work?

The guarantees in the cash loan offer relate to various parameters. Honest Bank and Agree Bank “outperform” the installments proposed by the competition.

Promotional guarantee may contribute to interest rates reduction

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The Honest Bank promotional guarantee may contribute to interest rates reduction. The most interesting option was provided by Good Finance. Within two weeks of signing the contract, the bank reduced the cost of credit to a value lower than that proposed by a competing institution (see the table below).

Promotional guarantee may contribute to interest rates reduction

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Persons using credit guarantees must submit documents prepared by another bank (e.g. promise, information form or draft contract). Guarantee lenders require that the installment, total cost or interest calculations relate to liability with the same parameters (the amount and length of the repayment period are checked).

It is worth mentioning that two banks (Honest Bank and Good Finance) will significantly lower the interest rate (below 9.00% or 8.40%) if the client presents an agreement with a competing Institution.

Presentation of the guarantees that domestic banks offer under cash loans

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name of the bank   The name of the product to which the warranty applies The parameter covered by the warranty Rules for obtaining a guarantee  
Honest Bank Cash loan / Consolidation loan loan installment Honest Bank offers the client an installment lower than the calculation proposed by another bank. One installment reduction is made by reducing the interest rate. A customer who, after signing the loan agreement with Alior, receives a more favorable proposal, must provide the competitive bank’s information form (with the same amount of cash loan, equal installments and the same repayment period). If the implementation of the guarantee requires a reduction of the interest rate to a value lower than 9.00%, the customer must first submit a loan agreement, which should be signed with a competing bank.

 
Good Finance   Cash loan total cost of credit The guarantee promotion lasts until March 31, 2014. It can be attended by persons who have borrowed from USD 20,000 to USD 150,000 for a period of 6 – 60 months. Good Finance will reduce the total cost of the loan to a value lower than that proposed by another bank (for the same amount, currency and length of the loan period). The credit cost reduction is one-off. A customer who, after signing the contract with Good Finance, receives a more favorable proposal within two weeks must submit:

  • an agreement with another bank
  • draft contract initialed by an employee of a competitive bank
  • loan promise with the signature of a competitor’s bank employee

If the guarantee requires a reduction of the interest rate to a value lower than 8.40%, the customer must first submit a loan agreement, which should be signed with a competing bank.

 
Agree Bank   A consolidation cash loan loan installment The guarantee promotion lasts until March 31, 2014. Agree Bank offers the client an installment lower than the calculation proposed by another bank. A customer who, before signing the contract with Agree Bank, receives a more favorable offer, must provide the competitive bank’s information form (with the same amount of cash loan and the same repayment period and installment type).

 
Honest Bank   Cash loan interest The one-time warranty promotion runs until March 31, 2014. It can be used within 30 days of the loan agreement. Honest Bank offers the client an interest rate lower than the calculation proposed by another bank. A customer who, after signing the contract with Honest , receives a more favorable offer, must provide the competitive bank’s information form (with the same amount of cash loan and the same repayment period). After the warranty has been applied, the customer will receive a refund of interest accrued at the higher interest rate.  

Do you need cash, but you want a guarantee that the amount of the installment or costs will not change during the repayment period?

Check the loan with the guarantee of the lowest total cost of the loan. All you have to do is fill out the application and the adviser of the Good Finance bank will contact you and present an individually selected offer. 

What are the terms of loans for those in debt?

About 41 percent of Polish households have debts, although most usually pay off regularly.

In turn, data from the GFIC report of the Economic Information Bureau of October 2017 show that 1.8 million Poles have 3 million past due debts.

 

Do such people have a chance to get a loan from a bank or non-bank company?

 

What are the terms of loans for those in debt?

What are the terms of loans for those in debt?

 

Adolescence, Polish citizenship, online identity verification, possession of a mobile phone in the Polish network and submission of a loan application are the basic conditions that must be met to obtain a non-bank loan for those in debt. 

 

Banks refuse to grant the loan in accordance with the recommendations of the Financial Supervision Commission, banks and cooperative savings and credit unions are required at every request of the customer credit check its data in the Credit Information Bureau – GFI.

 

The office collects data not only of indebted people who are late with repayment of loans or credits but also of reliable borrowers.

Therefore, if the history of GFI is positive, it will speed up the issuing of a positive credit decision.

 

However, if the GFI report and scoring indicates that the customer is in debt and does not pay its liabilities in a timely manner, you cannot count on the bank or GFIC credit.

 

An opportunity as part of the non-bank loan offer

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Indebted individuals have the option of obtaining a loan outside the banking system. There is no shortage of loan offers without GFI in the network, which is granted even to those who have a bad credit history.

This is good information for those who do not have a permanent job or receive irregular pay and have bad entries in GFI about late repayment of loan installments.

 

A non-bank loan can be taken online without visiting the lender’s headquarters. Documents are sent quickly by e-mail or courier for signature, and the loan is paid out within a dozen or so minutes of submitting the loan application.

 

The conditions that must be met to receive such funding include the following guidelines:

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at least 18 years old, and often a loan company requires 20 or 21 years of age,

possession of Polish citizenship and place of residence in Poland,

having a bank account in a Polish bank, registered in your own name,

having a mobile number.

 

After meeting these conditions, you can take out a non-bank loan if the customer verification his identity, e.g. by verification transfer to the lender’s account. In some loan companies, it is possible to get the first free loan for new customers.