Month: October 2019

Do not grant loans to young people

by Andrew King

Members of the Association of Non-bank Lenders have agreed that starting Monday, February 11, they will not issue loans to 18- and 19-year-olds. Such a restriction will remain in place until the state establishes a single credit register and provides for the possibility to check the income level of individuals.

Overall proportion of borrowers 

“The overall proportion of borrowers between the ages of 18 and 19 is small. They represent only 5% of the total, and the repayment rates are also good. However, given that certain precedents may have a negative impact on society as a whole and this is a socially sensitive group, members of the association decided to limit the loan until the state establishes a credit register, giving non-bank lenders a legal right to check their association leader Baiba Fromane.

Recognize lenders who have agreed to conduct responsible business practices

In order to recognize lenders who have agreed to conduct responsible business practices, including those that will not provide loans to young people aged 18 and 19, the association has created a "Responsible Lender" brand. It will allow any consumer to make sure that the company in question has adhered to the Association's Code of Good Practice, which provides for additional protection for borrowers and predictable terms of cooperation.

Non-bank lenders have embarked on self-regulation in the industry

“The decision of the members of the Association clearly shows that non-bank lenders have embarked on self-regulation in the industry, moving from word to word in the short term to introduce additional safeguards for borrowers. However, state support to the industry to address issues within its remit remains important. One is the creation of a credit register for solvency testing, while the other is the fight against illegal lenders by imposing stricter penalties, ”says  the association's chief executive.

What is a Credit Vacation?

by Andrew King

Credit holidays are bank holidays where you do not have to pay the principal amount of the loan but you have to pay interest. This means that for a certain period of time you will only be able to pay interest and accordingly you will not be burdened with credit.

Credit vacation short term loans

Short-term loans also usually have something similar to a credit holiday. Most lenders offer you a grace period for a symbolic fee. By paying a certain amount of money, the borrower may postpone repayment of the principal amount of the loan for up to one month. They are usually 7 days, 14 days and 30 days.

First credit free

The first loan, free of charge, means that new customers do not have to pay an interest or commission for the first time. If the customer needs a credit vacation for the first time, extending the term will cost as much as a re-credit. Example: If you borrow $ 150 for 30 days, extending the repayment term will cost $ 8.10 for 7 days, $ 10.20 for 14 days and $ 15 for 30 days. If the terms of the contract and the like are not violated, the customer can extend the loan repayment term as many times as necessary.

Partial Credit Holidays

  • the period during which you may not pay the principal amount of the debt in the case of a long-term loan agreement with a bank or quick credit company;
  • To apply for a partial credit vacation, you must make an application to the credit institution for the situation you are in and why you need such leave;
  • During a partial credit holiday, you are not completely exempt from debt repayment and you have to pay monthly interest payments to the credit institution, but in the meantime you can reduce the total repayment amount without repaying the principal.
Full credit vacation
  • is the period during which you are fully exempt from repayment of a loan for one or more months by a company;
  • it should be emphasized that full credit days are very difficult to arrange and that there is a very good basis for negotiating such services with the bank or the lender in question.

What is a loan calculator

by Andrew King

The loan calculator offered by your lender will help you borrow faster and more easily. The loan calculator shows you the amount of money you choose and the repayment term.

What amount of money do you want? How many days do you want to borrow? The loan calculator allows you to borrow the amount of money you need. Choose the loan amount and term (eg 88 USD for 22 days).

About the loan calculator

The loan calculator also shows you all the other important things. By sliding the line to the right that shows how much money you want to borrow, it will show you how much money a customer can borrow the first, second, third, fourth time. That's because you can borrow a certain amount of money the first time. The first loan is free - repayable as much as you borrow (it should be shown to the loan calculator). If you repay the loan on time and do not violate the terms of the contract, you will be able to borrow more money the second time than the first time.

Your loan calculator

To the right, the loan calculator will show you how much your credit is, how much your commission is, and how much you will have to repay. If you borrow for the first time, the commission will be 0.00 USD as the first loan is free. You will see the date by which the loan will be repaid. At the very bottom right of the bottom of the credit calculator you will see the extension fee and three terms - 7 days, 14 days, 30 days. The extension allows you to defer the repayment of your principal. Set off the loan extension fee shown on the loan calculator and your loan repayment term will be extended for 7, 14 or 30 days. You can extend the quick credit repayment as many times as you wish, unless you have breached the terms of the credit agreement.

The borrower has the right to apply for the fast loan an unlimited number of times. A lot more money is available to the borrower each time - this is also shown on the loan calculator.

It is a modern and modern loan calculator designed to make it as easy as possible for the customer to use the services offered. Quick credit can be obtained in as little as 10 minutes because everything is clear and it is really easy to borrow with a modern credit calculator. Before borrowing, evaluate your chances of repayment.