Personal Loans: Which To Choose?

The offer of personal loans is very varied. Every bank and the financial company offers, in fact, different products designed for specific needs or aimed in general to all those who need a loan. How to orientate, therefore? A personal loan through GreenDayOnline can help you take control of your finances.

Which personal loan to choose? Evaluate your needs

Image result for Which loan to choose?The first step to be taken to orientate among the different personal loans is to identify what is your profile. As is clear to those who have already had dealings with banks and financial institutions, the profile of the applicant that everyone would want for the granting of a personal loan is that of a permanent employee, in a solid company and with a contract signed by many years. However, we know well how matching these characteristics is rather difficult, especially in today’s diverse job market. Not corresponding to this profile, however, is one of the reasons that could push the financial to reject a personal loan. The solution to choose a suitable loan, in this case, is to choose a loan designed specifically for the profile that most corresponds to your personal case, such as a student loan, for housewives, for retired people, for protesters, for those who do not have a paycheck or for bad payers. The types of loans are many and refer to the specification sheets on the site, where we address in detail the characteristics of all types of personal loans.

A second aspect to be evaluated to know which loan to choose is the consideration of any specific needs. One aspect not to be overlooked is in this sense the need to use methods of return other than the debt on the bank account or even the provision of the loan through a form other than bank transfer. If it is true that these two modalities are those proposed in most cases, it is also true that they do not meet the needs of all those who apply for a loan.

Also, the need to request high amounts (above eg € 20,000) is a condition to be assessed before submitting the request for a personal loan. In fact, not all lending companies have products designed to do so for non-finalized loans (different is the case of loans or mortgages).

Which bank to choose for a personal loan

Image result for Which loan to choose?A second doubt involving the choice of a personal loan is the bank or financial institution to which to apply for a loan. If you choose a personal loan, you have two options: contact the bank or the banks with which you already have dealings or apply for a loan with a different bank or financial institution.

In the first case, the request could prove to be advantageous because knowing the client already, the bank has a better chance to evaluate its financial possibilities and profile. As a rule, banks with which they have been dealing with for several years are more likely to grant loans, especially if in the past they have already shown that they are able to repay loans or loans received.

The second possibility is instead recommended if your bank is not able to provide a personal loan and if the bank products do not correspond to the needs of those who request the loan.
Please note that it is not rare to obtain a personal loan from a person other than your bank, even if the latter has previously refused to grant a loan.

In order to identify which bank to choose for a loan or which type of loan is right for us, we always recommend comparing as many personal loans as possible with those who provide them, not neglecting online offers and the help they can give a tool like a comparator, able to compare in a few moments many offers and different providers.

Installment Personal Loan

The installment of a personal loan is one of the most important aspects of the loan for those who sign it. In fact, together with the interest rate applied, it is the amount of the installment that is the easiest aspect to evaluate for the sustainability of a loan. So let’s find out what the personal loan installment is and how it works.

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The installment: definition

By installment of a personal loan (but this also applies to a loan or a loan), we mean the periodic sum that the person who has taken out the loan will have to pay to the bank or the financial institution, to return what has been received. The installment usually has monthly frequency, even if nothing prohibits the possibility of identifying deadlines of different time duration.

What does the amount of the loan installment depend on?

The amount of the installment, ie the amount that will actually be paid by the borrower, depends on some factors. First of all, it is determined by the amount of the loan and by the time the personal loan is repaid. Note that the amount to be returned will never be equal to that received, but it will be added interest higher or lower, depending on the applied rate and the loan the same time. The installment is also functional to the duration of the loan itself: the longer the time is, the amount of the installment will be lower, and vice versa. In the event that the installment is not fixed, but variable, it is the depreciation plan applied to the element that affects the calculation of the installment .

The cost of personal loans

The definition that we gave in the previous paragraph, however, is a simplification, as it does not take into account possible ancillary costs other than the amount of interest, such as the collection costs of the installment, when foreseen. In this case, the amount of the installment must also be added to the costs, which must necessarily be indicated in the contract signed. To evaluate in the best possible way the actual cost of a personal loan and consequently the installments of the same, it is good to take into consideration the interest rate indicated as APR , which refer to the final cost of the loan.

How do you calculate the loan installment?

We have dedicated a specific guide to the calculation of the installment of the personal loan. However, even here it is good to specify how the loan installment is calculated. In most of the loans granted in Italy, the amortization plan used is the French one , which requires that whoever takes out the loan pay an equal installment for the duration of the loan (to know the other types of amortization plan, refer to the specific guide).
The amount of the installment is therefore always the same: what changes is however its composition. In fact, the installment is made up of two parts, called share capital and interest share , which correspond to the part of capital paid with the single installment and the part relating to interest. We have said that the final figure that those who take out a loan returns is given from the capital received and interest on the loan. However, interest and capital are not divided equally by the number of installments.

The amortization plan applied establishes the method of subdividing the two parts. In the French amortization plan, for example, the first installments are made up entirely of the interest component , to which a part of an increasing share of capital is progressively added. In a nutshell, the first to be welded will be interest on the loan, while the figure paid as loan will be paid only subsequently, to an increasing extent with the passage of time duration of funding.

The details of the amortization plan must be communicated to those who choose a personal loan; usually the installment plan is more than enough to know how the personal loan will be returned, while normally less important for the average underwriter is to know in detail how the installment is calculated.
However, being aware of at least the basis of the calculation of the installment of a personal loan allows you to make a more informed choice in identifying the loan that best suits your needs.

 

Apply for a Personal Loan: How, Where to Apply?

What documents are required to apply for a personal loan? Is it better to turn to a bank or a financial institution ? How do online loans work? Let’s find out with this guide.

Documents to request a personal loan

Whether you request an online loan or go to the more traditional channels, the request for the documentation to be presented does not change.
First of all, to request a personal loan, the applicant must provide the identity documents, that is the identity card and the tax code . If the person does not have it, other documents such as a passport can also be used. For foreign citizens it is also mandatory to provide all documents that can attest to the legal stay in Italy, such as a residence permit . To demonstrate the actual place of residence , usually the financial also require a certificate of residence issued by the municipality or the presentation of a ‘paid user , that is a bill (of energy or telephone) payable to those who request the loan.

In addition to documents confirming the identity and residence of the applicant, it is also required to submit one or two income documents , such as a pay check or a tax return (for example, the Unico model for self-employed workers).

Is it better to choose a bank or a financial company for a personal loan?

A very common doubt for anyone looking for a loan is where to apply for the loan itself. From a formal point of view there are no big differences between banks and financial institutions. However, if you have a relationship of trust or have a bank account opened for many years at the same bank branch, it may be advantageous to ask the bank to obtain a personal loan. But this does not mean that you are a bank is equivalent to obtaining a loan easily; it is not rare, in fact, that a loan refused by one’s bank is instead granted by a financial institution or vice versa.

Whether you choose a bank or apply to a financial institution, it is always recommended to evaluate the online offers of the same subjects, which sometimes offer personal loans designed exclusively for those who choose to subscribe via the Internet, and are therefore not available in the branch .
The comparison between several products, including personal loans online, is always recommended, to evaluate the largest number of loans possible and then identify the one that best matches your needs.

How to apply for an online loan

The request for a personal online loan is no different from applying for a loan in a bank or a financial institution. The documentation to be presented is indeed the same. In this case it is an advantage to be in possession of the digitized documents, ie transmitted to the computer by a scanner. If you do not have the possibility to obtain the documentation in digital format, it is usually impossible to send it by other means, such as the fax .

Online personal loans can usually be requested very quickly , without having to go to a branch of the company issuing the loan. The new technologies in fact allow you to take out the loan without having to move from home. Furthermore, the signing of documents can now also be carried out in a virtual way, through security systems that vary depending on the chosen financial. For example, some offer the use of the telephone to receive disposable codes to be entered then online. In any case, the procedures are very simple even for those who are not very familiar with the new technologies.

The security of online loans is also guaranteed, as is a traditional loan. However, we advise you to apply only to known financial marks if you do the research independently. This problem does not arise, however, in the case of the results shown by a personal loan comparator, which considers only the loans issued by controlled and guaranteed subjects. As anticipated in the previous paragraph, the choice of a personal online loan can prove advantageous , since it is often possible to take advantage of special conditions or products available only through this channel.

Before choosing a personal loan, online or traditional, it is always advisable to compare the different possibilities offered by the market, also using an online comparator, ie a tool that allows you to compare different personal loans in a short time and without having to enter the applicant’s data several times. To find out how to find the loan that best suits your needs and profile, we invite you to read the dedicated guide on the site.

 

Personal Loan Simulation

Simulating a personal loan is a fundamental operation if you want to know the costs that will be incurred when applying for a loan. The simulation allows in fact to know in detail the amount of the installments and their distribution for the duration of the loan.

How to simulate an amortization schedule

Image result for Personal Loan SimulationKnowing the details of the installments for the duration of the loan means simulating the repayment schedule . The plan allows to know how the installments will be distributed over time , what will be the amount of residual amount (ie the sum given by the capital plus interest) to be returned after each installment and the composition of the installment itself. As we have explained in the guide concerning the calculation of the installment of a personal loan, in fact, the installment consists of two shares: the principal amount and the interest portion . In fact, even if the installments always have the same amount , their composition varies, with the principal amount increasing in installment over time, while the interest rate decreases proportionately as the installments are paid. To simplify, we can therefore say that most of the interest will be paid in the first half of the loan period, while the second part will be devoted in greater part to the return of the capital received.
The calculation of the depreciation plan independently is rather complex; in order to avoid errors and to know the hypothetical plan easily, it is advisable to use an online calculator , an instrument that can simulate in a few seconds.

What data to consider to simulate a personal loan?

The essential data for the simulation of a personal loan are few and very simple to identify. First of all it is necessary to know the amount to be requested, net of interest. The second parameter to be considered concerns the interest rate applied (possibly the APR , the rate that makes it possible to compare personal loans more effectively with each other). Finally, it is necessary to indicate the duration of the loan.

Please note that online simulators consider the application of the French amortization plan for the calculation. However, there are other types of amortization; however, consider that in most cases this is the type used for personal loans granted in Italy. In the event that the financial product has different characteristics, this peculiarity is usually specified.

What data to consider for savings on a personal loan?

The simulation of the amortization plan helps to understand what the cost of the personal loan will be for those who have subscribed it. In the simulation, the main data to be referred to is the amount of interest , ie the additional amount that will have to be paid over time for the loan. The comparison between different personal loans, possibly made with an online comparison tool, already makes it possible to identify the most convenient loans based on the APR rate applied. However, the simulation of the repayment plan, makes tangible the actual amount of interest and the real amount of the installment.

When an installment is too high?

An important aspect to consider in the simulation of personal loans concerns the actual amount of the installment. It is always advisable to take out a loan presenting a lower rate compared to their ability to pay, so as not to be in trouble in case of unforeseen releases or decrease even temporary income. Please note that an installment is usually considered sustainable if it does not exceed one fifth of the average monthly revenue. This parameter, however, is indicative, as it is necessary to consider also its own situation of previous indebtedness , ie the presence of any other installments to be paid.

 

Personal Loans Rates

What is an interest rate and why is it so important to evaluate the convenience of a personal loan? What is the difference between TAN and TAEG ? Let’s find out with this guide.

Interest rate of a personal loan: definition

Let’s start with the definition of the interest rate, applied in our case to personal loans. By interest rate according to the economic definition, we mean the percentage that is used for the calculation of the additional sum to the capital received owed by who obtains a loan. In signing a personal loan, it is implicitly accepted that the sum to be returned at the end of the loan is higher than the amount received.
The difference between the sum returned and the sum received is called interest.

What does the interest rate depend on?

The percentage of the applied interest rate depends on several factors. First of all, the possibility of repayment of the debtor; in fact, the greater the risk of non-solvency of those who sign the personal loan and the higher the rate applied. The rate also varies with time : often personal loans with a shorter duration have a higher interest rate, but this is not always true and varies greatly depending on the type of product.
It also depends on factors independent of the underwriter, such as the currency in which the loan is issued.

The maximum amount of the interest rate applicable to personal loans is established for our country by the Bank of Italy . It identifies each year the maximum rates applicable for each type of financial product subject to the calculation of interest. If an interest rate exceeds the established threshold, it is defined as usury and whoever applies it is for this reason prosecutable by law.

The different types of interest rate on personal loans

In the disclosure of interest applied to personal loans, there are two interest rates that are usually disclosed: the TAN and the APR . Let’s find out the differences to understand what is the rate to consider in order to evaluate the convenience of a personal loan.

TAN: the nominal annual rate

In the communication relating to personal loans, very often the TAN is used, ie the nominal annual rate . This definition means the rate that is calculated annually on the amount paid for the personal loan. Be careful though because the TAN does not really correspond to the interest rate that will be calculated on the amount received, as it includes only the rate and not any other different costs.

APR: the annual percentage rate

The APR, ie the annual percentage rate, is the interest rate that allows you to really know the cost of a personal loan.
The indication of the APR in the communication related to a personal loan is fundamental because it allows to understand the cost of the loan. It is therefore the interest rate to be considered in the comparison of personal loans.

Please note that the APR is usually higher than the TAN. When comparing different personal loans, pay attention to always compare the same type of interest rate.

The importance of the interest rate for personal loans

Comparing loans based on the applied interest rate is the best way to find the really convenient online or offline loan. As already mentioned, however, it is the APR and not the TAN as one might think, the parameter to be considered more. In fact, this type of interest rate considers the effective interest that will be applied to the loan, thus also including the costs arising from ancillary costs . Please note that the APR is always higher percentage than the TAN.
The easiest way to compare the various personal loans is to use an online loan comparator , a tool that in a few minutes allows you to compare different products, comparing, in addition to the interest rate applied, other characteristics of the loan as the maximum figures that can be requested and the maximum repayment times of the loan.

Rates on personal loans for particular profiles of applicants

As we have already anticipated in the paragraph concerning the parameters that influence the determination of the interest rate, it also depends on the risk profile of the applicant. In fact, the most risky profiles, such as bad payers or protestants , are usually applied to higher interest rates, to compensate for the higher risk from banks and financial companies in issuing personal loans. The difference between the interest rate applied to personal loans dedicated to these profiles and a standard loan is not always very high; the comparison is once again the easiest way to understand if a personal loan is convenient or not for that particular applicant profile.

 

Request an OnLine Loan »How to Apply Online?

Here are the most common mistakes that are made in requests for personal loans online. The five mistakes you can not make to get a loan quickly and easily (and how to avoid them to get an online loan).

1. Try again immediately after a refused loan

Image result for Here are the most common mistakes that are made in requests for personal loans online.The first mistake in applying for personal online loans that we want to face is the request for a new loan after the previous one has been recently refused . First of all it is always advisable to ask, if possible, the reason for the refusal of the loan. If it is possible to remedy the situation that led to the refusal, it is good to do everything to resolve it. In any case, it is advisable to wait at least 30 days (or more, if possible) before submitting a new request for personal loans online , as even rejected requests can be consulted by those who evaluate the loan. Why wait? The reason is simple: it is unlikely that a bank or a financial institution will lend a loan if a competitor has recently refused it or very little time.

 

2. Multiple requests at the same time

A second very common mistake among those who request personal loans online is to make multiple requests at the same time. This is a mistake that in many cases leads to the refusal of the loan, because banks and financial institutions have access to databases that can show pending loan applications, ie not yet approved or rejected. In this case, usually the loaning subject rejects the practice, in some cases without carefully evaluating the feasibility of the loan itself. The reason for the refusal is simple: no bank would like to take the risk of granting a loan, knowing that it could be issued another short that would therefore risk compromising the ability to return the applicant.

4. Give up the personal loan

At point one of this guide we said that it is not recommended to request a new loan shortly after a refusal. This does not mean, however, that in the event of a refusal one should completely renounce an online loan! In fact, a loan refused by a bank could instead be approved by a different subject. After an appropriate period of time, you can always try again , turning to a different subject.

3. Do not request a release

In the event that an online personal loan is refused, it is advisable to ask the person who has refused the loan, a document called release . The release is a document that certifies that the loan application is no longer in progress so that the subject is “free” to apply for a new loan from another financial institution. This document is often requested by the financial institutions themselves; therefore it is recommended to take precautions so as not to dilate the time necessary for the evaluation of the practice.

5. Select the guarantor in a superficial way

Often, if the loan provider believes that the subject may be in difficulty in paying the installments, or believes that the guarantees provided are not sufficient, he can request the presentation of a guarantor , ie a person able to guarantee the repayment of the loan to the place of those who signed it. The error in this case concerns the failure to take into account the characteristics of the guarantor itself. Choose it carefully, asking especially if you already have several loans in progress . Also make sure that the guarantor is not a bad payer ; in this case, in fact, the financial company could refuse the practice without taking it too much into consideration. The same is true also for the protested . Before choosing the guarantor, make sure that your income or assets at your disposal can be a sufficient guarantee for the personal loan you intend to apply for.

 

Home Fire and Burst Policy: policies for home loans

IN BRIEF – Fire and explosion insurance policies provide compensation to the insured if the home is damaged by an accidental fire. This insurance coverage is mandatory in the case of a loan on the property

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What are they for?

Although there have been several legal attempts on the subject, to date in Italy there is no insurance obligation on the house. However, this does not mean that it can not be useful and in some cases it is absolutely necessary to reflect on the possibility of spontaneous access to insurance coverage that ultimately protects the biggest investment of a lifetime, ie our house.

On the other hand, the news that comes to us every day from newspapers, TV and the web show us clearly that the domestic one is still a risky environment . And it is no coincidence that many families have already begun to consider freely the hypothesis of protecting it against the most widespread risks such as those determined by fire.

Thus were born the house policies against the outbreak and the fire of the property , a type of insurance coverage that provides for a refund in favor of the insured in the case of accidental flames should damage the building itself or its contents. Similarly, especially in the earthquake areas of the country, many families have decided to activate a house policy against the earthquake , thus ensuring not only an indemnity against possible damage from the earthquake, but also the maximum assistance in the weeks and months post earthquake.

nature of fire and credit policies for the mortgage

Image result for Fire and explosion insurance policiesThis post began deliberately with a beginning that referred to the non-compulsory insurance policies on the house. In reality, however, there is an exception to this rule which concerns the houses on which a mortgage is active.

To understand what we are talking about we can consider the case of a family that is buying its first home and that, like many others, needs financing, or mortgage. Well in this case the bank will force the same family to contract a policy against the outbreak and the fire in connection with the loan.

It is not an abuse but a specific dictate of the law. Contractors must therefore insure the property against damage caused by fire and accidental explosions at home . Such a mandatory policy serves to secure both the bank and the insured. Both in fact, in the event of a fire that would destroy the property, they will not see their investment disappear as they will be able to count on an insurance reimbursement that will cover the damage suffered.

 

Traveling abroad with debts: how to check the debt, whether the debtor can go or if there is a loan and fines, at what amount the limit is possible

 

A large number of Russians have debts to repay loans and pay utility bills, which may be the reason for imposing a ban on crossing the border of the Russian Federation. When planning trips abroad, you should make sure that there are no debts. How can I check the information about the presence of a ban on leaving Russia? Can I leave the country with debts?

Is it possible to leave the limits of the Russian Federation with debts

Image result for Traveling abroad with debtsThe Federal Law “On the Procedure for Exiting the Russian Federation and Entering the Russian Federation” of August 15, 1996 No. 114-ФЗ defines the rules for crossing the Russian border. According to this legislative act, every Russian citizen is guaranteed the right to free exit from Russia, as well as unhindered entry into the country. However, Article 15 states that it may be temporarily limited for the following reasons:

  • availability of access to classified information;
  • the passage of alternative or military service (until its termination);
  • the availability of judicial proceedings until the sentencing;
  • departure of punishment for the crime committed;
  • evasion of obligations imposed in court;
  • false information when applying for a passport;
  • work in the FSB;
  • bankruptcy.

Thus, it is impossible to travel abroad with debts in cases when the debtor’s case is submitted to the court, as well as when evading the obligation to pay the debt before its full repayment.

At the same time, the rules governing the departure of debtors abroad are determined by the Federal Law “On Enforcement Proceedings” of 02.10.2007 N 229-ФЗ. Article 67 states that a temporary restriction is imposed if there is a debt of more than 10 thousand rubles or at the request of the recoverer.

A temporary ban on crossing the border can be imposed or lifted only on the basis of a court order, and the Federal Bailiffs Service (FSSP) is only engaged in its execution. A copy of the resolution is sent to the debtor, as well as to the Border Guard Service of the Federal Security Service of the Russian Federation and other migration control authorities.

Only a court has the right to impose a temporary restriction on travel abroad.

What types of arrears prevent from going abroad

Image result for Traveling abroad with debtsThe following types of arrears may impede travel abroad:

  • bank loans;
  • loans in microfinance organizations;
  • taxes;
  • alimony;
  • debts to individuals and legal entities appointed in court;
  • Payment of utility services;
  • administrative fines (traffic police, the Ministry of Internal Affairs, the Border Guard Service, the Russian customs, the veterinary control service, the labor inspectorate, etc.).

The reason for filing an application to the court is non-payment of debt for 6 consecutive months. The reason for imposing a ban is not the debt itself, but the fact of evading its repayment.

 

How to check the availability of debts

There are several ways to check the availability of debts.

The simplest and most understandable of them is the verification through the FSSP website in the section “Databank of executive proceedings”. From individuals is required only the introduction of the region of residence, name, surname and date of birth. Also, anyone can request information on the availability of enforcement proceedings at a toll-free multichannel phone number: 8 (800) 250–39–32.

Debts can be checked through the following Internet resources:

  • portal of public services (all types of debt);
  • website of the Federal Tax Service ;
  • traffic police website ;
  • The site of the Central Bank of Russia .

In addition, information on debt for utilities is published on the websites of management companies.

 

How can you go abroad with debts

The most reliable method of going abroad is to pay off debt and lift the ban on temporary departure from the Russian Federation. After payment of the debt you need to present to the FSSP receipts confirming its payment. The restriction will be lifted at least in 10 working days.

An emergency lifting of the ban is also possible if the debtor needs to leave due to undergoing a course of medical treatment abroad or a business trip. To do this, you also need to contact the FSSP and present papers confirming the purpose of the trip. As a rule, the service is in the position of the debtor and removes the restriction.

After the repayment of the debt payment receipts are presented in the FSSP

The Internet contains a lot of information that you can travel abroad with debts through the territory of Belarus, Kazakhstan, as well as Lithuania and Latvia when traveling by train to Kaliningrad. These methods are illegal. The facts of such violations will be notified to the Border Guard and the FSSP. Therefore, leaving the territory of the Russian Federation with debts without prior approval of the Bailiff Service is fraught with new penalties and new court proceedings.

Remember that you can freely leave the Russian Federation only if you fully repay existing debts.

 

If there are debts to citizens of the Russian Federation, a temporary restriction may be imposed on the crossing of the Russian border. To avoid unpleasant situations, you should know in advance the presence of debts and, if possible, pay them off.

 

Everything about the bicycle loan and the electric bike

Which loan is actually suitable as a bicycle loan? Many credit providers offer a bicycle loan. But actually this loan does not really exist. It is just an installment loan.

Image result for bicycle loanSo a kind of personal loan. With the bicycle loan you can at least finance a bicycle. Usually you can also finance certain accessories such as a cycling computer, clothing and other bicycle equipment. People apply for a bicycle loan to be able to spread the costs of this publication over a number of months.

Borrow for a bike at Bank

Bank is in Belgium, as far as we are concerned, the lender with whom you should call for a bicycle credit. With them you can finance all kinds of bikes. From an electric bike to a mountain bike or racing bike. And you can borrow extra money for accessories such as cycling gear, helmet, lighting or other items. You can also take out a cheap bicycle insurance policy with them. You borrow from an interest rate of 2.99% APR.

Move cheaply by bike thanks to the installment loan

The loan on installment is a type of loan that is very suitable as a bicycle loan. After all, you know how much the expenditure costs you in total. That is why it is best to take out a loan with a fixed interest rate, term and repayment.

Financing for electric bicycle very popular

Never before have so many loans for electric bikes been applied for. And did you know that nowadays half of the bikes that are sold are electric? And not only electric folding bicycles are popular. Electric mountain bikes are also sold as hot cakes. With the growing offer, the number of bicycle loan providers is also increasing enormously.

Cheap borrow for a bicycle

More and more lenders are offering a bicycle loan. That is good news for the consumer. They can therefore easily compare loans with each other. How much a loan for a bicycle costs, that depends, of course, largely on the cost price of the bicycle itself. Perhaps you can even save money on a loan by buying the same bicycle cheaper from another provider? An electric bicycle has the advantage that you have to take little account of obligations that apply to motor vehicles. For example, in most cases you do not have to register with the Vehicle Registration Service. Until now, that is only mandatory for a speedpedelec. You must provide this with a registration plate. It is wise to take out a bicycle insurance policy!

Bicycle insurance

For companies it can be very interesting to buy a bicycle. For them there are certain opportunities that are financially interesting. For employees too, a loan can be taken out for a bicycle to be worthwhile. After all, they are eligible – as they go cycling to work – on a bicycle allowance to 0.23 eurocents per km, tax-free.

Interest on installment loan now lower than the revolving credit

Did you know that the interest on installment loans (also known as the personal loan) is currently lower than the interest on the revolving credit? That is quite remarkable, because previously borrowing money with the revolving credit (DLK) stood for the most advantageous form of borrowing.

What is cheaper: Loan on installment or revolving credit?

Image result for revolving creditIn the past there was no doubt that the revolving credit was cheaper than the installment loan. The interest on the DLK was always significantly lower. If the interest rate level rose, this interest would go up. And that is why the interest rate was set lower than the fixed interest rate (which still applies to personal loans). At this moment, however, many things have changed! Because: The fixed interest rate for the cheapest loan on installment is lower than that for the cheapest revolving credit … Unique!

Interest rate DLK no longer decreases

Put the interest rates of both forms of lending side by side and you will see that since a few years the interest rate for the revolving credit has not decreased since 2016 and that of the personal loan! In fact, the interest rate of the DLK has increased slightly since 2016! In December 2018 the interest rate of the cheapest PL in the graph is below that of the cheapest revolving credit … It should be clear which form of borrowing is the cheapest