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Micro loans: Small loans and mini loans without credit record

Lenders market micro-loans, mini-loans and small loans such as sms loans or fast loans. You can take small loans and mini loans directly without credit record or income and also with payment note, in addition, the payments are usually fast. About 10 years ago, the concept of micro-loans was highlighted. The basic idea here is that private individuals should be able to borrow a small amount of money during the day without security quickly and easily. In Sweden, mini loans and small loans have been offered since 2006.


What are micro loans and small loans?

What are micro loans and small loans?

A micro loan is a bit as it sounds, a mini loan that is not as large as one can in most cases take without security. In addition, you can often take it with a payment note. Because a small loan does not require any collateral, you can buy what you want with the loan or do what you want with the money. The lender does not require you to explain what you are going to spend the money on. Micro loans are thus small loans that are quickly paid off to your account. Often, there is a short repayment period and slightly higher interest rates than other types of loans. If you are looking for a smaller loan and if you may have payment notes then this is a good option. In addition, you usually do not have credit information at credit record.


Direct loan with BankID

Direct loan with BankID

Actually, there does not need to be any difference between mini-loans, micro-loans and fast loans. It depends on the interest rate the different loans have. A small loan does not have to have as high interest rates as a fast loan, which almost always has a higher interest rate. When applying for a mini-loan, it is no more difficult than any other loan. You fill out the loan form of the desired lender. You then verify the application through mobile BankID and then get the message directly on the screen. A credit report always happens, but when it comes to micro-loans, you usually do this at Astro Credit or BizMode.The money can be held in the account on the same day the loan was granted, but it depends on the lender and at which bank you have your account.


Micro-loans and mini-loans with payment note and without credit record

Micro-loans and mini-loans with payment note and without credit record

Today it is quite possible to get a micro loan without credit record granted despite having one or more payment notes. Usually, the lender then makes an individual assessment when applying for the micro loan. The assessment is instead based on your financial conditions and not on your financial history. When applying for a small loan, however, you always make a credit report. This is a requirement of all lenders in Sweden. However, you do not always use credit record when making information. Without lenders can use alternative information companies such as BizMode and Astro Credit. The advantage of alternative information companies is that the credit information is not visible at credit record. Which is a big advantage if you are applying for larger loans in the future.


Is it possible to take a micro loan without credit information?

credit loans

No, there will always be a credit report if you take a micro loan. All loans over $80,000 today require that you take a credit record check. As we mentioned, most mortgage loans and micro loans are without credit record, but you can also take larger loans up to $150,000. This means that all small loans up to it can be without credit record.


Small loans without income

Small loans without income

Sometimes it may be that you have no declared income. You may have just got a job and simply haven’t been able to declare yet. Or maybe you are a student or a pensioner. No matter what, it is actually possible to take small loans and micro loans without income. For this to be possible, you may need to prove that your current finances are sufficient after you pay all other bills each month. This can be substantiated by means of salary specifications, work certificates or other.


To think about before taking a micro loan directly

A micro loan is best suited when you are looking for a small amount of money directly. What one should keep in mind is that the effective interest rate may be higher than other types of loans, such as private loans and interbank loans. The interest rate is usually a little higher because you can take the loan without credit record and that you can usually have payment notes. This entails a higher risk for the lender, which results in a higher interest rate. What you should always keep in mind is not to take a mini loan unless it is necessary, which can sometimes be difficult to determine.

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Unknown sms loans :Less known lenders

Finding new, unknown sms loans and lenders is not always easy. However, it may be beneficial if you come across an unknown loan. There are many new lenders out there that offer loans without credit record. Furthermore, you can also find unknown loans that even people with payment notes can take. Thus, it may be good to look for unknown lenders when taking a quick loan or sms loan. Everyone can end up in a situation where you need to clear out the cash register. For example, it could be if the car breaks down, or if you are on vacation and the cash register has run out. Then it is good that there are unknown loans that you can also get with payment notes. In addition, you can find new lenders who grant loans without interest.


Unknown sms loans without credit record

Unknown sms loans without credit record

Many credit reports at credit record can affect your credit rating. Thus, you want to avoid a credit record to the extent possible. There are many unknown sms loans that offer micro loans and loans without credit record. Instead, these new lenders use other credit information companies such as Lendrite and Astro Lending . Thus, with unknown sms loans, you can ensure that your credit rating is not affected when you take a sms loan . If you only need to take a micro loan, ie borrow a smaller amount of money, then an unknown lender is a good alternative.


Direct payment around the clock

Direct payment around the clock

If you use a lender using Astro Lending or Lendrite, you will in many cases also have the opportunity to have the money paid directly to the account . It can happen already on the same day and also around the clock . Then check if the lender has direct payment to the same major bank with which you have an account. For example, it could be Best Bank, MoneyHatch Bank or Lending Bank. Some lenders even pay out the money 10 – 15 minutes after your application has been approved.


New unknown lenders offer interest-free sms loans

sms loans

There are constantly new unknown lenders in the market that offer both fast loans and account loans. With these unknown sms loans you can often borrow money without interest , up to 30 days interest free. Thus, loans are basically free . Therefore, it is important to also look for unknown lenders when you are taking out loans. With a lesser known lender, your loan can be much cheaper than it otherwise would have been. Many other fast loans and bank credit that are known offer high-interest loans. If you want to avoid high interest rates, you should look for a more unknown loan.


Unknown lenders accepting payment note

Unknown lenders accepting payment note

When looking for unknown sms loans with payment notes , it can be difficult to find a lender who grants your loan application. We recommend that you contact an unknown lender who accepts payment remarks. New lesser known lenders in the market are also more likely to grant your loan. You can also find interest-free loans that accept payment remarks. Finally, there are many advantages to unknown lenders. You can find sms loans without credit record, despite remarks and without interest. But don’t forget that many established players also have the opportunity to lend you money. So it doesn’t always have to be that lesser-known lenders will guarantee you a loan. Then it might be a good idea to go to a well-known actor instead.

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Employer Loans: Benefits, Entitlement, Interest Rate and Tips

Employer loans are also called employee loans or personal loans. Both employer loans and installment loans to employees are referred to as employee loans. A distinction to be made from an employer loan is to make early wages or salary payments, colloquially known as “advance payments”.

In the case of an employer loan, the employer grants loans as part of the company social benefits. The parties involved individually determine the amount of the loan and the term. The loans can be short-term to compensate for financial emergencies or long-term for larger financing goals. Sometimes only a few hundred dollars are needed to save the employee from a financial shortage. But consumer loans in higher sums are also possible. Companies can also set up special home finance programs, which result in a high loan and a long term. Long-term planning is particularly advisable for larger loan amounts, because smaller companies cannot spontaneously raise or release large amounts.


Benefits for workers

work loan

As a rule, interest rates are relatively cheap compared to bank loans and the employee is more independent of banking.

The employer can use this loan specifically for employee retention. For him, the credit risk is also lower than it would be for banks. Because he has direct access to the wages accruing for the debtor’s benefit and relative security through the employment relationship.


Who can access employer loans?

Employer loans exist in all economic sectors. However, they are subject to special legal provisions in banking. For example, loans to bank employees in managerial positions may only be granted by decision of all managing directors and on market terms. In other companies, works councils are subject to co-determination if several employer loans should be granted, because that falls into the company’s wages.


Is there a right to an employer loan?

employer loans?

Providing employer loans is a voluntary decision by the employer, and there is no obligation to do so. However, if an employee is granted one, others in the company are also entitled to it. Because the principle of equal treatment applies. However, workers who are already deeply indebted or who have given notice of termination can be denied the loan. As a rule, trainees, employees during the probationary period and employees with fixed-term contracts are also excluded from the employer loan.


Who do I ask for an employer loan?

In smaller companies, the boss is responsible for the request for the employer loan. The personnel position or the works council are the right contacts in larger companies to get information first. A company agreement may already regulate the granting of an employer loan.


Contractually fix the agreement

employer loan?

In order for the loan relationship to be legally secure, it must be contractually fixed. The agreements that must be recorded in writing include the determination of:

  • Loan amount
  • Redemption modalities
  • interest
  • running time
  • Collateral Loan
  • Procedure for termination of employment


Calculate the interest rate and the monetary benefit

Compared to banks, employers usually offer lower interest rates on loans. The monetary benefit resulting from this interest rate difference must be taxed. To determine the advantage, the market interest rate (standard interest rate) serves as an orientation.

The easiest way to calculate the standard interest rate is to deduct four percent from the effective interest rates for the type of loan that the Best Lenders Bank recently published. If the interest rate on the employer loan is less than 96 percent of these effective interest rates, the interest benefit must be taxed as a non-cash benefit. If the employer waives interest, the entire loan is subject to income tax liability.


The repayment

credit loans

The repayment modalities are determined individually. For example, for repayment, it can be agreed that the employer retains part of the employee’s remuneration each month – until the loan is repaid in full. The usual legal garnishment limits must be observed.

The employee is obliged to repay the loan in full. If this is not the case or if the entrepreneur waives the repayment, the sum is considered wages. This is fully taxable as part of the income tax.


What happens when the employment relationship ends?

A strict distinction must be made between the employment relationship and the obligation relationship. An end of the employment relationship does not mean at the same time the automatic termination of the loan contract and an early recovery. This is at least true if the agreements are contractually correctly regulated in the event of termination. Then the loan contract continues, there may be an opportunity to raise the interest rate to the market level. If there is no need agreement, the employer may be able to request total repayment within three months.

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Calculate prepayment penalty and redeem the loan early

The prepayment penalty is an additional payment to the lender, for example the bank, which the customer must pay if he repays the loan early in the first 10 years of fixed interest rates.

The customer may reschedule an installment loan at any time, construction financing only if there is a legitimate interest. In both cases, the bank can request compensation. He may only change providers after 10 years or at the end of the fixed interest period without paying a prepayment penalty.


The prepayment calculator for mortgage lending

mortgage loan

Banks are obliged to make the calculation of the prepayment penalty transparent so that the borrower can understand their amount. The prepayment calculator of the independent consumer portal Astro Lending supports interested parties and calculates the approximate amount of their prepayment penalty for a building loan.

The calculation basis is complicated, so compensation that devotes from the result of the prepayment calculator can be justified. If there is a large deviation, however, an inspection can be useful. For example, it could be possible that the bank did not take the maximum special repayment into account when calculating the prepayment penalty or calculated a higher administrative cost.


The prepayment penalty for the installment loan is calculated in this way

installment loan is calculated in this way

The calculation for installment loans that were concluded after June 11, 2010 is simple:

  • The prepayment penalty for a prematurely terminated consumer loan may not exceed 1 percent of the remaining debt.
  • If the remaining term is less than a year, the sum may only amount to a maximum of 0.5 percent of the remaining debt.

This limitation does not apply to building finance. The amount of the prepayment penalty is not capped even for installment loans that were closed earlier.


This is how the prepayment penalty for a building loan is calculated

building loan is calculated

Banks use one of two methods to calculate the prepayment penalty for a real estate loan:

  • Active-active method
  • Active-passive method

With the active-active method, the interest income lost due to the early repayment of the loan is compared with the interest income accruing from a new loan agreement. This calculation method is often cheaper for borrowers and is used by relatively few banks.

However, the calculation based on the active-passive method is used much more frequently. It  provides that the credit institution calculates the prepayment penalty from the difference between two amounts:

  • the payment flow agreed in the contract (interest, repayment, remaining debt at the end of the fixed interest period)
  • and the interest income that would accrue if reinvested in mortgage loan with the same term.


Why is a prepayment penalty charged?

loan penalty

What is an advantage for the customer usually represents a financial disadvantage for the bank concerned as a lender. This also applies to the early termination of a loan: if the customer repays the loan early, the bank can no longer collect the interest calculated in advance. The bank incurs a loss of income. In order to compensate for this, she can calculate a prepayment penalty.


When no prepayment penalty is charged

money loans

A prepayment penalty is only calculated if the unscheduled repayment of the loan is made during the fixed interest period. In the case of variable-interest loans, where there is no fixed interest rate, there is no reason to calculate compensation. In the case of mortgage lending, follow-up financing can be concluded with another bank after the end of the fixed interest period without any prepayment penalty. If the borrowing rate is set to last longer than ten years, early redemption after the tenth year will also not result in compensation if the notice period of 6 months is observed.


Is it worth repaying the loan early?

loan payment

Before borrowers redeem their existing loan prematurely, they should always take the prepayment penalty into account. To do this, they have to calculate whether the interest benefit that would result from the newly taken out (cheaper) loan as a total is really greater than the prepayment penalty to be paid. The advantage calculator for follow-up financing helps to determine how much dollars savings the interest rate difference between old and new loan actually means. If the interest savings are less than the prepayment penalty, it makes no economic sense for the borrower to terminate the existing loan early, even if the borrowing rate of the new loan is lower than before.

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Follow-up financing: comparison of your interest and costs – Loan Refinancing

If a building loan has not yet been paid in full at the end of the fixed interest period, follow-up financing is required. That means: the homeowner has to renegotiate with the lending bank or find another lender. If you don’t want to give a penny away, you will find suitable financing early on before the interest rate fixation expires. At least three months, better half a year before the end of the fixed interest period, the borrower should receive an offer for the prolongation from his bank and at the same time obtain counteroffers from other lenders for a possible debt rescheduling.


Interest rate comparison is worthwhile

Interest rate comparison is worthwhile

Since the offers on the market may well differ, a comprehensive comparison is required. The building rate calculator determines which borrowing rate you receive for your building finance from a cheap provider. Alternatively, you can request a specific financing proposal under loan application. Both offers are of course non-binding and free of charge.


Is it worth changing the bank for follow-up financing?

financial loans

With the calculator for follow-up financing, borrowers can calculate whether a change of bank is worthwhile for them. If the lender changes, there are costs for the transfer of the land register and the notary in the amount of a few hundred dollars, but these can be recouped through low-interest follow-up financing. Real estate financing, which is 0.5 percentage points cheaper, can save interest by a few thousand dollars.

You can calculate which additional costs arise from follow-up financing in the land register and notary fees calculator.


Secure early interest rates for follow-up financing

interest rates for follow-up financing

Borrowers should have follow-up financing compared in good time to find a suitable loan with favorable terms. If the fixed interest rate for an existing loan expires, the house bank sends a prolongation offer at least three months before the fixed interest rate expires, which usually has to be accepted within a few weeks. Then the time is often too short to look for cheaper offers and to compare them in peace.

It makes sense to find out at least half a year before the interest rate commitment expires. When interest rates are low, it often makes sense to worry earlier. Because many banks are already offering low interest rates now, even if follow-up financing is only called up in six months or a year. Even with an even longer lead time, you can take advantage of cheap offers via so-called forward loans.


Attractive terms for follow-up financing

money loans

Banks often have good offers when it comes to follow-up financing. Because homeowners have proven their creditworthiness by regular repayment of the installments since the completion of their first financing. They may also have higher incomes and greater financial leeway than years before the first loan was taken out.


A high repayment is recommended

loan repayment is recommended

A high repayment is particularly important for follow-up financing. Now borrowers should set the course for their freedom from debt. You should keep your monthly rate as low as possible, or – better yet – set it high so that you can repay your remaining debt faster. Since there is often a greater financial leeway compared to the time of initial financing, a higher rate of follow-up financing is also feasible for many.


Debt rescheduling before the end of the fixed rate period

Debt rescheduling before the end of the fixed rate period

A house or apartment loan can also be redeemed before the end of the interest rate fixation with an early repayment if the borrower wants to switch to another bank with better conditions. After 10 years, this is possible at any time by observing the notice period. If you want to replace that before, you have to pay a prepayment penalty. Since the level of interest five or ten years ago was still significantly above the current best rates, many consumers can save with a new loan agreement.

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Home loan for your dream property: individual comparison

For around 80 percent of Germans, owning their own property is the top priority on the wish list. For most, this wish can only be realized with a home loan. The Lenders Bank ‘s low interest rate policy gave many tenants the chance to fulfill their dream of owning their own four walls. See for yourself how low interest rates are: Enter the data on your home purchase in the home loan comparison at Vibeloan Bank. The cheapest offer will be determined for you from hundreds of banks and savings banks.


This is how a home loan works

home loan works

A building loan is colloquially referred to as “house loan”. A mortgage is a very long-term loan secured by the property itself, the total term of which is often between 20 and 40 years. The duration of the fixed interest rate must be differentiated from the term: it is usually five or ten years for a home loan. Follow-up financing follows.


Real estate as security for a home loan

As a security, no salary assignment, as with an installment loan, and no assignment of the motor vehicle letter, as with a motor vehicle loan, are required for a home loan. Either a mortgage or a mortgage on the house or apartment is entered in favor of the financing bank. However, mortgages are in the background, in 90 percent of the cases mortgage is secured by a mortgage.

While the amount of a mortgage theoretically has to be adjusted with every repayment, the mortgage remains in full over the entire term of the building loan. The land charge can remain after final repayment and can be ordered later as security for a new loan. The bank’s claim to the house expires with the payment of the last repayment.


Equity on home loans

home loans

As a security, the bank does not accept the purchase price of the property, but a mortgage lending value, which it determines based on objective criteria. It rarely corresponds to 100 percent of the purchase price.

As a rule, customers should finance a maximum of 80 percent of the purchase price when buying a house. Solid construction financing provides for 20 percent of the purchase price plus the incidental acquisition costs from own funds. The following are considered equity:

  • Cash assets
  • mortgeable securities
  • Building society savings
  • ceded surrender values ​​from life insurance
  • Loan from the employer or relatives
  • Own contribution


Interest rates

Interest rates

A high proportion of equity is important for customers in order to receive cheaper interest. In addition to equity, individual interest rates depend on many other factors, such as the customer’s creditworthiness or the duration of the borrowing period.

The general level of interest on mortgage lending is primarily based not on the key interest rate of the Lenders Bank, but on the Pfandbrief index. The key interest rate has only a limited impact on the Pfandbrief index.


Other costs

loan costs

In addition to the annual interest rate, a house loan can also incur additional costs – such as commitment interest, if the loan amount is only called up after a few months. A prepayment penalty is due if the loan is terminated before the fixed interest period expires. Real estate itself also incurs costs – for example through taxes or insurance.The guide offers an overview of additional costs for buying a house and maintaining a property.

Basically, it is advisable to compare the offers available on the market in order to find optimal home financing. The home loan calculator at Vibeloan Bank will help you with this.


Further building blocks for real estate financing

home loans

Real estate financing can consist of several different loans. In addition to the house loan described above, this can also be a home loan, a money loan or an employer loan.

  • Home savings loans have a comparatively short term. This means a quick and therefore cheaper repayment, which, however, is offset by a comparatively high monthly charge.
  • Low-interest money loans are used both for pure construction finance and for special projects – for example to improve energy efficiency or for barrier-free living.
  • Employer loans are added to equity by banks, but must be subject to strict tax regulations. If these are disregarded, there is a risk of tax liability on income-like special payments.

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Short-term loans – Borrowing money for a short time – Credit

Short-term loans are perfect for those who only need to borrow a small amount of money, and for a short time. There are many benefits to this type of loan, and in addition, these loans can be free. That is, the loan will come without interest. Another thing that stands out about the short-term loans is that it is quick to get the money paid into your account. Short-term loans are often also referred to as quick loans or sms loans. Then it is convenient with short loans as you can find many good alternatives that suit you who do not want a credit record . Even people with payment complaints have good chances of finding a lender who will accept the application.


Short-term loan without credit record

Short-term loan without credit record

Applying for a short-term loan without credit record can be important as you do not want too many credit record checks made. This is important as it will affect your credit rating in the future. Trying to get a traditionally large loan without credit record can be next to impossible. In fact, almost all major banks and other major financial institutions still use credit record . Unlike those lenders, however, you can find many smaller short-term loans where the lender will not do any credit record . Of course, they want to be sure that you will be able to repay your loan, but instead of credit record they use other companies to check your credit rating.


Short-term loan with payment note

Short-term loan with payment note

Obviously, having payment notes does not mean that you are necessarily in poor control of your finances. It takes three years for a payment note to be prescribed. Thus, it may be that you previously had financial problems that you have now overcome. Furthermore, it is, however, that it can generally be very difficult to find someone who wants to grant you a loan, even if the payment note is on a smaller amount and it is also old. Here too, short-term loans come into the picture as a good solution. You can easily find many different lenders in the category of short-term loans who understand your situation and who are willing to process your application despite payment remarks.


Short loan without interest

Short loan without interest

Short-term loans do not necessarily mean that interest rates are unreasonably high. In fact, the first 14 days by law means that you have a right of withdrawal, so you can withdraw from the loan. Furthermore, this in turn means that the first 14 days are in principle both interest-free and fee-free loans. In summary, it does not have to be expensive to use short-term loans. The most important thing is that you know that you will be able to repay the loan within the stipulated time. Disadvantage of these smaller quick loans and sms loans can be high interest rates and fees if you fail to pay.

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Credit – Credit without credit record with payment note

Account credit is a smoother form of quick loan! A credit loan is flexible, smarter and usually directly without credit record, with Cream Credit or BizCredit. You do not need to know exactly how much money you will actually spend, or even when exactly you will need them. The only thing to consider is whether you need to borrow with payment notes, without credit record or without income. When the need arises, the sum is available. When you talk about account credit and credit loans, it is basically just about extra money right away when you actually need them.


Credit loans directly, a security without credit record

Credit loans directly, a security without credit record

Credit or credit loans have become an increasingly popular type of direct loan lately. It’s not hard to understand why. Maybe you see an upcoming problem with the car, for example. Soon you will need to fix the error, but you are not sure when or exactly how much it will cost. A credit loan can then be perceived as a security, since you can usually take out an account credit directly without credit record. It is a credit that waits just when the need arises and you can decide exactly the amount you want to withdraw.


What is Account Credit?

Account Credit?

To understand what account credit is, you first need to understand what the word credit means. What is Credit? The word “credit” (from Latin’s “credit”, to “believe in”) simply means a certain amount that is left to the lender to dispose of for a certain period of time. Basically, it is a form of loan, with interest, which is then repaid. Unlike other loan forms, an account credit lets you determine the exact amount you actually want to dispose of. If you want, you can see a credit loan as a kind of safety net for a situation you imagine or know is coming – a situation when you will need money you may not have available yourself at that time.


A credit loan instead of a credit card

A credit loan instead of a credit card

Imagine a loan that works like a credit card, but without the physical card itself. An account credit is simply a flexible credit that allows you to use exactly the amount you need and at exactly the time you require it. In addition, this applies around the clock, every day of the week. It is then only the amount withdrawn that you pay for – never the untouched capital. When you apply for credit and, for example, are granted credit loans of $ 40,000, but only use $ 5000, then it is only $ 5000 that you pay interest. Note that the type of loan is sometimes also referred to as “mortgage loan” or “flexi loan”.


Credit card on mobile

Credit card on mobile

Most account credits not only mean flexible and fast credit when you need it, but also easy access. It is usually possible to get credit on your mobile phone, or a so-called sms loan.

You can usually borrow anything between $ 1,000 and $ 50,000. But be prepared for the maximum limit to be set only after a credit check. There is also credit that goes up to $ 500,000, but in most cases the lender takes a credit record check on you.


Credit loan despite payment note – can you get credit without credit record?

Credit loan despite payment note - can you get credit without credit record?

If you have received remarks, you should also be aware that you can get a credit loan with payment remarks. This is done by being granted an account credit without credit record, which is possible with most donors. An account credit with payment note can otherwise be a real savior in need for those who have difficulty getting a loan.

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