What are Personal Loans?

The word finances seems to refer to complex terms related to economics, the stock market, investors, mathematics and administration. However, finance influences everything and our daily life is no exception, hence the concept of personal finance.

Finance is a broad branch of the economy that refers to the study of transactions and the management of money and goods between different entities such as governments, companies and individuals.

Personal loans, on the other hand, refer to the management and administration of money and assets of an individual or family. That is, the management of all your money : your income, your expenses, material goods, savings funds, investment funds, insurance, loans, etc.

Why is it important to understand personal loans?

Why is it important to understand personal loans?

Knowing what personal loans are is fundamental to understanding how they work and how we should manage our money. In a simple way, it encourages us to be aware that every decision we make when using our money, whether for an expense or an investment, is a decision that can benefit or harm our quality of life and our future.

Most Mexicans do not have an education or financial planning and we still think it is difficult to understand or we do not need it, so we go through life working 9 hours a day from Monday to Friday and wasting money every fortnight to finish with empty pockets at the end of each month.

That’s what money is for, right? Definitely not. The intelligent use of our financial resources goes far beyond that; wisely manage your money can generate more wealth in the long term than progress in your career to have a better salary.

Therefore, if you do not mind understanding what personal loans are or do not think you need them, you should know that by simply having money in your power and having personal loans; bad or good, but you have them.

How to have good personal loans?

How to have good personal loans?

1. The number one rule in personal loans is to make the difference between expenses and income as large as possible, that is, try to reduce your expenses as much as possible and increase your income as much as possible. Try that your expenses are always less than the money you earn, no matter if your income is 5,000 pesos per month or 50,000. The money that you do not use in your expenses has to go directly to your savings, and these will increase month by month.

If you want to know how you can start decreasing your expenses and saving you can start by creating a personal budget where you will plan how much money you will allocate to each aspect of your day to day: transportation, food, health, education, entertainment, etc. From there you can track your expenses and identify those that are unnecessary.

Camibank is the first personal finance platform in Mexico with which you can create a personalized budget easily and quickly, and which automatically tracks your expenses when linking your bank accounts. 

2. You need to divide your savings into different funds. It is essential to have a fund for emergencies and another for your retirement; Having these two funds will prevent you from losing your sleep if some day you find yourself in financial difficulties.

After you have formed these savings funds, and depending on your needs and income, you can start building various savings funds for your short, medium and long-term goals. For example, you can have a fund for your child’s college, for a business or for a house.

3. The golden rule in personal loans is to get your money to work for you without you having to work. The money you have saved can be invested to generate returns and at the same time not lose its value month after month due to inflation. To understand this better, you must know two concepts:

  • Assets. It is known as an asset to an investment that generates returns. Assets always generate income. Examples: investment funds, the income generated in your bank account, your own company, stocks, or the income you receive from investments in real estate.
  • Liabilities It is known as liabilities to the expenses that are inevitable or to the debts or obligations that we have. Examples: food, housing, education, health, taxes, credit payments and debts in general.

In the end, if the returns generated by your assets allow you to cover your liabilities without the need to work, you will achieve financial freedom

Now you know what personal loans are and why they are so important.

What is a commercial loan?

Commercial loans 

Commercial loans 

Commercial loans are bank loans given to different types of business units. In some cases, the commercial loans are expanded to help a company with short-term Dr. Jekyll for basic operational functions, such as meeting pay or purchase of supplies used in the production of the goods manufactured and sold by the company. At other times, the commercial loan can be utilized to purchase new machines directly related to the operation of the business.

The commercial loan is often thought of in the form of a short-term source of cash for a business. Some banks offer a commercial loan format known as a renewable loan. Renewable loans allow the company to secure necessary funds, repay balance within terms, and then roll out the loan for another or renewed period. This type of commercial loan is often used when a company needs funds to secure resources to handle large seasonal orders from customers while still providing goods to other customers.

As with most types of loans, the credit rating of the applicant will play a major role in securing a loan on market terms. The company usually has to provide documentation proving the stable cash flow in the company, ensuring the lender that the loan can be repaid under terms. If approved, the borrower may anticipate paying an interest rate consistent with the primary lending rate.

One of the benefits of a commercial loan is that many banks offer these types of loans at very competitive interest rates. Often, rates will be lower than for other types of loans, especially asset-based loans. This means that the borrower will have a smaller amount to repay the lender.

As with all financial arrangements, local and national banking sector laws will dictate the structure and conditions of a market-based loan. Any business that wants a commercial loan would do well to work with the bank to evaluate the current working capital needs of the company and look at all possible loan solutions before making a formal market loan application.

Quabank Loan – Convenient Loans

Fast and Secure Quabank’s Credit Loan

Fast and Secure Quabank

The lack of a smaller amount before payout can be addressed in a variety of ways. If you are betting on safety and comfort in this area, Quabank’s Credit Loan is the ideal choice. A non-bank loan of up to CZK 7,000 with a maturity of 45 days, which can really be used for anything. See zupa-derventa.com for details

New clients of the company can borrow CZK 3,000 for 30 days and check what professional services the company offers. Everything can be handled comfortably from home, so you don’t have to visit any remote branch offices.

Table of Quabank’s Credit Loan Repayments

Table of Quabank

Loan Amount Repayment period Interest APR Total to pay
500 CZK 5 days 365% 3422% 525 Kč
800 CZK 7 days 365% 3305% 1.070 Kč
1.500 Kč 15 days 365% 2899% 1.725 Kč
CZK 2,000 20 days 365% 2686% CZK 2,400
3.000 Kč 30 days 365% 2334% 3.900 Kč

Representative example: Are you interested in CZK 2,600 that you need to pay for the electricity surcharge? Then, Quabank’s Credit Loan will provide you with this interest rate of 365% and APR 2,334%. However, you can lower these values ​​with a 200 CZK discount. Instead of paying CZK 780, you will pay only CZK 580. In total, you will pay a refund of $ 120 for a 30-day refund.

Online loan without complicated paperwork

Online loan without complicated paperwork

Quabank’s Credit Loan is attractive because of its availability, unlike banking companies that do not provide small sums of money. You can ask for a minimum of personal documents for money. You will receive your funds 30 minutes after the approval of the internet application. If you have a bank other than what you know, you will receive money within two business days.

Advantageous Quabank’s Credit Loan allows you to extend your due date when you are unable to properly fulfill your obligations. You can ask up to three times to postpone the deadline, avoiding any unpleasant debt trap.

Get funding for anything and get up to CZK 7,000 in repayment for loan applications. In addition to speed and flexibility, prepare for high security and clear contract terms.

The Four NOs of Personal Loan

 

Personal loans, usually read easier than they really are, sometimes it is difficult to follow so many tips that a friend tells us or that some “guru” of finance says it is “the best” we can do.

Life is full of unforeseen events and these are what most of the time make us fall into financial bumps. However there are very simple things that we can avoid to have healthy personal loans.

These are the four things you should avoid to get your personal loans in order.

  1. Spend more than you earn.

    Spend more than you earn.

As illogical as this is read, the truth is that the vast majority happens to us, especially when we have consumer loans, sometimes we do not perceive how much we are spending, because “the simplest thing” is to pay with the card.

But not all credits are bad, especially if they help you get out of debt. Remember that there are options to consolidate your debts and even save you a lot of money in interest. Doopla is an option to apply for a loan with fair interest to pay your expensive debts.

  1. Carry your credit cards everywhere.

    Carry your credit cards everywhere.

No, we do not tell you to give them up, simply that we are always considering that “it is too much money”. When you go shopping you take cash so you limit yourself to what you bring.

  1. Make purchases without lists.

    Make purchases without lists.

Not only that of the supermarket, plan all the purchases you are going to make. If you have to buy clothes, make a list on your mobile device with your needs, this will not only help you spend less, you will also save time.

  1. Set your fixed expenses.

    Set your fixed expenses.

The expenses that are totally necessary must also be fixed and those that can be reduced, do not hesitate to do so. For example, it is useless to have the largest pay TV package if you only see it on weekends and that sometimes, consider cutting these expenses.

Consolidate your debts already acquired are part of your fixed expenses, so if you already have options to start paying less, it is time to take advantage of them. Do not hesitate to visit Doopla, the online loan platform to obtain a premium loan to help you settle those debts faster.

No doubt these are four basic points that you should NOT change, if you want to continue with debts, if you already decided to try to keep your loans in order, it is time to take action with respect to these four basic points.

The Early Repayment of the Loan by Proxy in 5 Points

In order to carry out projects, especially if of a certain weight, it may be necessary to resort to financing. Among the various types available, the loan with proxy is a solution that can be accessed by employees with permanent contracts.

But is it possible, once requested, to extinguish it in advance?

Let’s find out how to do it in this post: here are the characteristics and methods for early repayment of the loan by proxy.

What is a proxy loan? 

What is a proxy loan? 

The loan with proxy is a type of loan (regulated by Article 1269 of the Civil Code) at a fixed rate and with constant installments, reserved for employees who have certain characteristics in relation to the legal category of the employer, the length of service matured and the type of employment contract. In general, they can apply for a loan with a delegation (or double-fifth) to state employees, a large part of public employees and private employees with permanent contracts, subject to verification of the case. The proxy loan can in fact be added to the Cession of the Fifth and the relative two installments can not exceed 2/5 of the salary.

Additional liquidity.

Additional liquidity.

This particular form of personal loan is reimbursed by the client through a payment delegation, issued to the Bank, of a share (up to a maximum of one fifth) of his salary. It allows to obtain an immediate liquidity that is added to that already connected to any loans in progress (with restitution through the assignment of the fifth salary ).

Preliminary evaluations, including on rates.

 

Analyzed the economic conditions of the loan and after having ascertained the effective possibility of using this type of loan, also evaluated the APR (Annual Effective Annual Rate) and the TAN (Annual Nominal Rate), verifying what the actual amount of the loan is installment that you will have to support. During the underwriting phase, make sure that there are insurances, provided by law, to protect eventual insolvency: life insurance policy and employment risk policy.

How it works.

How it works.

As for the Cession of the Fifth, even in the case of a proxy loan, it is not required to specify the purpose. However, unlike the assignment of the fifth, it is expected that access to this form of financing is governed by a special agreement between the employer of the applicant and the granting institution unless it is discretionally authorized by the employer. The repayment of the loan by proxy takes place through the payment of the installment on the paycheck. The loan can be paid in installments up to 120 months. Recall that the sum of deductions for the loan by proxy and the assignment of the fifth can not exceed 40% of the paycheck.

The early repayment of the loan by proxy.

The early repayment of the loan by proxy.

The early repayment of the loan by proxy is governed by various provisions on loans attributable to consumer credit. Early termination can be requested by submitting a specific application to the credit institution, attaching a copy of the identity document. Usually the credit institution replies within ten days of receipt of the request with the issuing of the extinction account, ie the total amount to be paid to extinguish the loan. You can pay by bank transfer on the Ditam indicated in the document sent by the bank, by the date indicated. The option of early repayment of the loan by proxy is exercised through the payment, on the part of the customer to the creditor, of the residual capital and, if explicitly provided for by contract, through a fee not exceeding one per cent of the residual capital. It is understood that consumers who pay off their loan early are in any case entitled to a reduction, by the lender, of the total cost of the credit due, for an amount equal to the amount of interest and costs for the remaining duration of the loan contract. In particular, this reduction refers to the portion, at the time of early repayment, of the interest not accrued, the insurance premium not taken and other costs relating to the residual life of the debt.

The employer must also be informed of the early extinction, because we are talking about a double fifth that includes a deduction from the paycheck. The credit institution, received the balance for the early extinction of the loan by proxy, will send to the applicant and to the employer a release certifying the closure of the loan, in order to stop the monthly deductions on the salary.

Loans – Always Pay Back in Time!

The widely advertised online loans have made the first thing about what we think when we lack money, of course, it’s a solution to any problem with cash, easily accessible and non-problematic, so why However, you have to remember to always regulate debt in a timely manner. Check what the experts are doing.

Repayment date – why is this a key issue?

Repayment date - why is this a key issue?

When you sign a contract, you are immediately informed about when you can give back the money. Online loans are usually paid in one installment because they are not large amounts. You can give it back without any problems if you only reduce your expenses. In the end, you can refuse to go to a restaurant or shopping for a weekend. It’s better than to worry about the repayment time coming soon, and we have nothing to give you a loan for.

What is the threat of delay in giving away cash?

What is the threat of delay in giving away cash?

Putting cash after the deadline is associated with many unpleasant consequences. The first of these is, of course, criminal interest, as well as a penalty, the amount of which you can find in the contract. Did not you read this information? Evidently you were inadvertently signing the documents. You will have a lesson in the future to scrupulously analyze the point by point and the next time you know it is better to borrow less than you can not give back then. If you do not settle the payment despite the calls for payment, debt collection proceedings will be initiated. It involves much more expensive costs, so do not risk it. We recommend checking the tips for safe online borrowing!

Loan – how to find an offer tailored to your needs?

Loan - how to find an offer tailored to your needs?

You can find the best offer by using loan installment rankings. Only here you can check which loans are in the first places and which ones are worth considering if you are thinking about how to improve your budget. The rankings are created by Finance and Financial Technology market experts, so you can easily use their hints and enjoy the money you get.

Loans can be a huge support, so it is worth using them when we need them. When we give them back according to the date, everything will go our way.