WHAT SHOULD WE KNOW BEFORE GETTING A CREDIT?
There comes a time in the life of each of us when we need additional financing and think about what, how, where to take out a loan? After we have made the decision to take out a loan, it is good to compare the conditions of several banks, for which you can trust our team. We will provide you with offers from several banks that meet your requirements, which will not cost you anything and will save you time visiting different banks and comparing different offers. There are several questions that we need to answer before choosing a bank and type of financing, namely – from where to withdraw a loan, in what currency should the loan be, what is the term and others.
Here are the answers:
- Where can I take out a loan – it is best to take out a loan from the Bank, currently the conditions for lending are extremely good. Of course, a loan can be withdrawn from a financial institution or the so-called „quick credit“, but with them it should be taken into account that the interest rates are much higher than those of the banks, as well as the fact that they are on a monthly basis, not on an annual basis.
If the client and his income allow him to pay a loan for a shorter period, this is the best possible option. When the loan is for the purchase of a property, it should be taken into account that the term of the loan should be as long as possible, so that the installment on the loan does not burden the monthly expenses.
- Choosing a repayment plan – last but not least, it is important to choose the method of repaying the loan, there are two options: annuity installments or decreasing installments. What’s the difference – the annuity payments are equal in amount for the entire loan period, and the decreasing ones are different in amount for the entire loan period. With annuity installments, the principal is larger and the interest is less, while with decreasing installments, the principal is the same and interest is charged on the remaining amount that is not yet paid.
- Signing a contract after loan approval – it is important to know that before signing the loan contract we must receive pre-contractual information, the so-called A standard European form that contains the main parameters and conditions of the loan chosen by us, such as: annual percentage rate (APR), the amount of the loan, the term, the currency, the monthly installment and the total amount due at the end of the period. If the conditions described in it meet our requirements, we should sign the form and submit it to the bank.
If we have not withdrawn or used the credit amount and we change our mind, we can cancel within 14 calendar days after signing the contract without paying any fees.
„Finance Help“ Ltd. advises its clients before signing any documents to familiarize themselves with their contents and if there are any unclear things to ask questions or consult with us.
- Credit insurance – more and more often, banks require their customers to take out additional life insurance that benefits the bank. This ensures security and peace of mind for the customer because most insurances have unemployment clauses included. Consumer credit insurance is not a mandatory condition, and each customer can refuse insurance to the bank or take out insurance that meets the bank’s requirements with an insurer chosen by the customer.
Insurance for mortgage loans is a mandatory condition, but it can also be concluded with an insurer chosen by the client, as it must meet certain requirements from the bank.
For all questions related to insurance, you can count on a free consultation from our credit consultants.
- Premature repayment of the loan – if you decide to repay the loan in full or in part before the end of the term, please note that this is possible without paying fees, if the following conditions are met:
– at any time if the credit is consumer, with the exception of loans with a fixed interest rate;
– 12 months after the conclusion of the mortgage loan agreement.
If you wish to find out more about the credit conditions offered, you can trust our credit consultants. They will give you complete information and compare several offers for you, and you will choose the most advantageous conditions. You will receive a professional consultation, at a time and place convenient for you, which will not cost you anything.