среда, 13 июля 2011 г.

Interest-free loans - new scam

Find the answer to this question that drives turn to an analysis of two major banking programs offering interest-free loans. This installment (buying goods on credit) and car loans. We consider each of these options in detail. "Basic conditions of interest-free loan (term, application procedure) remain generally unchanged. However, the bank is not without its rewards due to him. In this way, only redistributed to the interest rate yield on the commission," - said Chief Financial Officer "ProstobankConsulting" Alexander Grizzly, The most frequently used one-time and monthly commission. Disposable commission is calculated on the loan amount (purchase).

For example, at the cost of goods in 1000 USD and a one-time commission of 20% in fact, the bank will have to pay 1200 USD. Monthly fee varies between 1-3% and is calculated on the outstanding balance or the full amount of the loan. Naturally, the second form of monthly payments is less favorable. In this case, additionally have to pay the bank in the form of monthly fees 12-60% per annum of the purchase price. Thus, the effective interest rate (total cost of the borrower) may reach 80% per annum and above. In addition to disposable and monthly commissions, in practice there are additional fees: the fee for consideration of an application for a loan and execution of its issuance, the monthly fee for maintenance of credit accounts and credit support, the fee for the loan in cash, commissions on transactions with credit cards, etc.

On the eve of holidays widely used interest-free loan scheme to include the remuneration of the bank in the future price. For example, the overvaluation of goods from 1000 to 1250 UAH. These 250 UAH and are the percentages that store (in fact the client) will pay the bank loan. Also, the borrower on interest-free loan offer to pay the first installment. When it comes to buying expensive items like cars, pay 10-20% of its value can not everyone. In granting consumer credit risk the bank is much higher than the mortgage or car loans, since loans are available with virtually no collateral. In this regard, Alexander Gray noted that "in recent years, many banks have switched to more risky lending, but also more lucrative. The effective interest rate on bank loans to express an average of 80%." In other words, the increased risk of loan default, including interest-free, increases the cost of banking products. To reduce the risks in some cases, banks require customers to pay the initial fee.

"On the one hand, reduces risks, and the other shows on the solvency and serious intentions of the client. As a general rule, the banks that charge a large one-time fee, do not require a down payment," - stated Gray. Here, however, the client can lie in wait for another trick. When paying a down payment accordingly reduces the size of the loan and interest thereon payable to the bank. While one-time commission serves as an instrument of income of the bank, confirming solvency of the borrower. But its payment on the loan amount is not affected. Therefore, other things being equal, more profitable loans with an initial payment than a single commission. We have already discussed the benefits of payments for goods purchased in retail outlets, with the use of credit cards, because the pay commission (about 2% of the purchase price) will be a seller.

The latter circumstance leads to sometimes unmotivated refusal to accept the card for payment. As for the car loan, then the corresponding range of bank programs have long been used in Russia. Among them: quick loans, buy-back (at the end of the contract or the borrower can pay the remaining cost of the loan and leave your car at home, or sell a car dealer at a predetermined price in the contract and purchase a new model), trade in (an old credit machines), factoring, loans for used cars, zero loans, auto loans with no down payment. Option-interest car loans provided to Russia several schemes. In the first case, the manufacturer or dealer when buying a car on credit to a borrower makes a discount, which equals the rate of interest on the loan. Thus, when buying a car worth 100 thousand dollars the borrower pays the bank the said sum, and a car showroom, offering a discount of 15 thousand dollars, they pay the bank in interest. Thus, the borrower actually interest-free loan will be. The second option - factoring. Car dealer gives the customer the opportunity to buy a car hire and assign its rights to the installment to the bank. The borrower pays in the cabin of the car price, the remaining amount paid in installments to the bank. Interest paid for the use of loan auto show, since he ceded to the bank debt (just received the money) and the service is required (factoring) to pay. In some cases the provision of interest free car loan payment increases of the insurance company with which the bank operates. The Ukrainian market for car loans so far behind a similar market in Russia for 1-2 years. This, according to Mr. Gray, to the fact that "this scheme are complex, and the risks are high.

In addition, the Ukrainian market, competition among banks is not so strong, and there is a simple mechanism to increase the attractiveness of automobile loans: increased credit term, a loan to buy a used / have cars, and others. "Thus, in most cases, interest-free credit is not other than good advertising. Moreover, the Law "On Banks and Banking Activities" to provide interest-free loans are prohibited, except as provided by law. By the way, Russia's Supreme Court has already recognized the validity of claims about the illegality of charging Rospotrebnadzor banks additional fees and fines when servicing the loans. From now on, the courts may deem illegal commissions and fines of almost all Russian banks involved in lending to individual persons. While it is often the commission and ensure the profitability of banks in interest-free loans.

Choosing a credit program, it is necessary first of all, read the terms of loans denominated in the contract. Moreover, before signing the document, rather than after. In this case, Alexander Gray noted that "interest rate - is the most accurate and honest way to determine future payments on the loan. As a general rule, those banks that use interest rates are cheaper resources, and they do not have to resort to various schemes to improve visual appeal of their products "- summed up the Grizzly. Analysis of core banking software (and car installments), which offers interest-free loans, showed the following. The most profitable loans, where the emphasis is on interest rates. For example, a small interest rate and one-time commission. Or, interest-free loan and a one-time commission (19%). More expensive are those banking products that use the monthly fee. The effective interest rate on these loans can reach up to 80%.

16 комментариев:

  1. I’m impressed with the special and informative contents that you just offer in such short timing. Longhorn Lending

  2. This is one of the most important blogs that I have seen, keep it up!payday loans

  3. Did you know that big companies spend more than 1 BILLION dollars on advertising every year?

    Companies are constantly developing and improving ways to advertise their product, and they NEED someone like you to show off their ads on your vehicle.

    Do you know what they need? They need YOU. That's right... and they are willing to pay money for you to drive to work, drive to the grocery store, etc... to advertise their product.


    By advertising this way, companies get their product shown to a core demographic that they are targeting!

    You could make $300 a month by simply driving to work everyday! Imagine making money for something you already do all day long!.

    Easy work and easy pay that could really help with the bills.


    Sarah Johnson

  4. Get loans when you are jobless in United Kingdom. We cater all credit type people. Feel free to visit quick small cash loans

  5. Hi, I really like your blog you’ve written very well. I must say you have lot of knowledge about this but I want to suggest you something that if you are looking forb Free ad Posting Websites www.helpadya.com there is one more website www.helpadya.com

  6. "Mortgage Loan Software is very important when you are working in a mortgage industry. All the loan officers, mortgage brokers and loan processors need a way to organize and keep track of all their loans in their pipelines"!!

  7. At Best Unsecured loans we provide total bad credit loan solutions in the UK. Whether you are looking for unsecured homeowner loans or personal loans, we can help you find quick loans. We do not let bad credit history hamper your loan eligibility.

  8. car helpline service india

    Sahayata Global Assistance is India's Fastest Growing & Innovation driven roadside assistance company which ensures on time help by a professional mechanic in case of a vehicle breakdown.


  9. Do you need personal loan? Does your firm,company or industry need financial assistance? Do you need finance to start your business? Do you need finance to expand your business? We give out loan to interested individuals who are seeking loan with good faith. Are you seriously in need of an urgent loan contact us at Email: flourishloancredite@gmail.com
    Your Full Details:
    Full Name:
    Loan Amount Need:
    Loan Duration:
    Phone Number:
    Applied before?
    Monthly Income:
    You are to send this to our Company Email;flourishloancredite@gmail.com

  10. Apply Now For A Personal Loan

    Get The Money You Need Today!
    * Fast Approval
    * Low Interest Rates
    * Any Loan Amount For Any Reason
    Personal Loan in Bangalore, Business Loan in Bangalore, Car Loan in Bangalore, Home Loan in Bangalore

  11. Are You Looking for a loan urgently? Would you like to settle your bills and Purchase property (Investment loan)/ Building loan? I can guarantee you 24 hours loan approval We are a world class Investment company offering all kinds of financial services with flexible repayment terms and a timely closing schedule.Email- (urgentloan22@gmail.com)
    Thank you.

  12. Hello Everybody,
    My name is Mrs Sharon Sim. I live in Singapore and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of S$250,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of S$250,000.00 SG. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs Sharon, that refer you to him. contact Dr Purva Pius,via email:(urgentloan22@gmail.com) Thank you

  13. The car has become a necessity of life. No one wants to wait for buses or cabs to travel from one place to another. Auto Loan is a scheme that helps a person to acquire the vehicle. There are lots of companies that offer auto loan at profitable rates. Auto Loan is the best source to get the finance for the vehicle at cheap interest rates.
    Car Loans