The important points to negotiate for your real estate loan

To succeed in your real estate project requires knowing the different stages which go from the sales agreement to the signing of the deed. Our advice on the 15 most important points to help you succeed in negotiating your mortgage.

No need to use computer software to establish a forecast budget. It is essentially a question of estimating, on the one hand, the expenses related to your future accommodation and on the other hand to prepare your financing.

Some expenses will appear for the first time as the property tax, others, already existing will have to be reassessed such as the housing tax, housing insurance or heating and transport costs. Plan for a margin of error and assess your financial envelope based on these elements.

Make the competition play

Make the competition play

Put several banks in competition from the start. Do not make the mistake of contacting a single organization by telling yourself that it will be possible later to contact other establishments. You are running out of time and it is best to have all the financing proposals in hand as soon as possible so that you can compare.

You can contact a mortgage broker to obtain the best mortgage and benefit from the advice of a professional. You will save significant time by comparing a large number of loan offers in a minimum of time.

Establish several financing plans

In the same spirit, ask your interlocutors to establish several financing plans. It is important that you make several projections in order to check which is the best formula for you. (Fixed or variable rate, choice of duration, smoothing with short loans, etc.).

Competing for the group insurance contract with an external delegation

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Nothing requires you to take out your loan insurance from the bank. Since the Lagarde Reform, it is entirely possible to take out insurance with the insurer of your choice. The only condition: present guarantees at least equivalent to those offered by the lender.
Note: A delegation of insurance does not necessarily offer a lower rate than the group contract. The price depends on the age and state of health of the insured. After 40 years, the contract offered by your bank may be cheaper. 

Save on booking fees

It is not the most important position but it is not a reason to neglect the administrative costs. In the order of 1% of the amount of the main loan, generally capped at € 500 for loans not exceeding € 100,000 and € 800 for a higher loan.

Avoid the mortgage

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The lender requires collateral in the event of borrower default. Again, you can save money. Most banks offer to go through a mutual guarantee company, less restrictive and more often less expensive than real security (mortgage registration or IPPD).
If the mutual guarantee is refused, ask the bank to opt for a lender lien rather than the more expensive mortgage.

Negotiate prepayment penalties

Let’s be clear, banks don’t like to negotiate prepayment penalties (3% on principal repaid). For the simple reason that buying a home loan costs them money. Nevertheless, the discussion must be conducted from the first interviews.
Our advice: if the bank is reluctant to abolish the early repayment indemnities, propose a decreasing reduction. For example 1.5% after 5 years and free after 10 years.

Avoid interim interest

Avoid interim interest

If you have a project of the main residence in the new one (construction of individual house or purchase of an apartment in VEFA), you should know that the successive releases (as and when fundraising) will give rise to the payment of interest dividers.
Only one solution to escape it. Ask the bank to amortize the amounts disbursed progressively (payment of principal and interest). Still, it is necessary that the incomes are sufficient to face these deadlines in addition to a possible rent and this, until the delivery of the accommodation.

Predict the disaster scenario: the resale guarantee

There are enough hasty resale situations to warrant caution. If in the event of force majeure, you had to resell the property, the resale guarantee will make it possible to compensate for the possible financial loss linked to the resale of the accommodation up to a certain limit defined by a contract.

Choose between a fixed rate and a variable rate

Take the time to compare the offers before deciding. A fixed-rate will bring you security until the end while the variable rate will allow you to benefit from a lower rate, at least initially.
Note: there are also mixed financing formulas that allow you to benefit from a fixed rate for a certain period and then switch to a revisable rate afterward. Our advice: if you opt for a revisable loan, prefer a capped rate which allows you to set a ceiling in the event of an increase

Tips for Finding Non-Bank Loans Through Individual Investors

Nowadays more and more people are interested in becoming business people or entrepreneurs in addition to being civil servants or working in prestigious private companies.

But to realize these goals, people are often constrained by capital problems while the concerned does not dare to deal with banks to apply for loans both with and without collateral.

Apply for loans both with and without collateral

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An alternative solution that you can try is to invite other people who have excess funds and want to develop it to invest in the business that you want to start. So at your company later, they are the shareholders. Well, here are tips for finding non-bank loans through individual investors.

It is not an easy matter to convince potential investors to invest their funds to become venture capital.

The reason is clear they do not want their money eroded in vain on investments that do not make them sure or even worse since the beginning they have felt a priori because they feel the investment you are proposing is false fraud under the guise of investment.

Nobody wants to suffer losses, right? But you should not be discouraged because this is one of the initial challenges as a young entrepreneur.

Therefore, you should be able to convince these potential investors by designing a business scheme that you want to start and where potential returns can be achieved.

Describe in detail your business prospects going forward honestly, realistically, and convincingly without anything being covered up with a view to personal gain.

Explain thoroughly about your business plan including the risk of loss as the worst possible. Your sincerity and good intentions will give confidence to potential investors so they are willing to invest in your business. Well, here are some guidelines for effectively getting investors.

Tips for Finding Non-Bank Loans Through Individual Investors

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  1. Design a business plan to be established in detail on paper. Express in detail starting from the vision and mission of your intention to establish the company. Don’t forget to include your experience and competence in the business field honestly. These points will attract the attention of potential investors about the business you want to establish.
  1. To potential investors, you explain in as much detail as possible about the strategy that you will implement in order to achieve returns on the business. Thus, potential investors will see profit opportunities for themselves by working with you.
  1. Convince your prospective investors to be honest and in accordance with the fact that working with you can be a golden opportunity to invest in the company that you are going to start so that your capital can grow more and more.
  1. Especially with regard to financial calculations, give potential investors details of the distribution of returns that have the opportunity to be obtained through the business that you initiated. It’s important to provide a clear calculation of the estimated profit opportunity that they will get as an investor who invests funds in your company.
  2. Finally, if all these guidelines do not get results, give a guarantee to your potential investors. This means they will get a 100% refund if the business you start turns out to be a failure.

Thus, your prospective investors will feel confident that you will not run away with their funds or take your hands off if it turns out that the business started failing. For that, instill a determination in yourself that you must not fail by thinking about all the anticipations.

Starting a new business is indeed a challenge in itself but fear of failure should not be an obstacle for you to take action, including taking risks that are likely to occur. Constantly being in a comfort zone will leave you trapped and reluctant to step up to develop your potential and life.

Finding non-bank loans through individual investors

Finding non-bank loans through individual investors

To anticipate failure, make optimal planning by thinking about solutions to every problem that has the opportunity to occur. Discipline in carrying out these strategies so that the business you are pioneering is as successful as you hope.

Well, hopefully, this review of tips on finding non-bank loans through individual investors is useful for you.

In addition to tips on finding non-bank loans above, you can also find loans through Good Finance.

Later, investors who are incorporated as Lenders or Lenders in Good Finance will work together to fund your financial needs; both to meet the needs of business funding, health funding needs, to education. Join Good Finance now!

Long-term loans offer more affordable installments

Long-Term Loans Offering More Affordable Installments – As the name implies, long-term loans have long loan terms or long repayments.

There are two opinions about the classification of these loans. First, there is an opinion that a loan is categorized as long term if the loan period is more than one year.

Second, if the loan period is more than 5 years, while loans with a term of 1-5 years are categorized as medium term.

The time is given to pay off the loan longer

The time is given to pay off the loan longer

Whatever the opinion, the most important thing is the time given to pay off the loan longer. Because longer, installments become more affordable. In other words, you can get a larger loan amount.

The illustration is as follows. We take the example of a loan with a ceiling of 24 million and a flat interest of 1% per month.

If you borrow within one year, then the monthly installments to be paid are 2,240,000.

If you borrow within five years, the monthly installments to be paid is 640,000.

It seems clear how long-term loans are more affordable? The longer the time period you get, the smaller the installments that must be paid.

Another illustration can be obtained from a different perspective. For example, you have the ability to pay in installments of 500,000 every month.

If you take a short-term loan within a year with a flat interest of 1%, the number of loans you can get is around 5 million.

If you take out a loan within 10 years of 1% flat interest, the number of loans you get can reach around 25 million.

Therefore, a long-term loan allows you to borrow a sizeable amount. If you need business capital, of course you need a large fund right?

Then, with inflation that continues to exist every year, the value of money becomes smaller from year to year. For example, the value of 500 thousand today feels big enough, but in ten years maybe 500 thousand is not very valuable because prices have gone up high.

So, if you get a flat loan contract for a long time up to 10 years or more, then your burden will feel lighter from year to year.

Long-term loans are not easy to obtain

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However, long-term loans are not easy to obtain. Because it is a long-term contract, the bank or other lenders need strong evidence of your ability to pay.

You must be able to show the stability of your financial condition. If you are a worker, you must work as a permanent worker in a place that has been around for a long time and has a good reputation.

If you are an entrepreneur, your business must have been established for a certain time with proven financial stability.

In addition, banks also need guarantees whose value is stable for a long time or even better if the value can grow from year to year.

The best type of collateral for this type of loan island with ownership rights because the land value will usually always go up according to regional development.

If the collateral is in the form of certified land owned, the loan period can reach ten years or more.

Motorized vehicles with proof of ownership can also be used as collateral, but the time period is not too long because the value of motorized vehicles will decrease every year as the condition of the engine and body of the vehicle decreases.

Usually can not be more than 5 years. In addition, the age of the vehicle also affects lending. Vehicles that are old, more than ten years old, will be difficult to guarantee.

Besides being difficult to obtain, another disadvantage of long-term loans is the amount of interest you have to pay.

Total interest charged is multiplied by the amount of the installment

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Because there are more installments, the total interest charged is multiplied by the amount of the installment.

If it’s only one year, the interest is only 12 times, while 5 years is 60 times. If you have already counted like this, trouble starts.

Because each type of loan has advantages and disadvantages of each, pay attention to the amount of interest, the amount of installments, other costs, and the benefits you will get from the loan.

Perform calculations carefully so that you do not choose wrong. The most important thing is to choose a loan that can meet your needs and remain affordable to you.

Real estate loan for disabled worker

Getting a mortgage when you have a disability requires removing several obstacles. Here is a complete file on the assistance to the accession brought to the handicapped people and invaluable councils to enable them to become an owner of their housing or to finance works of accessibility. 

Aid for accession

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The state and local authorities can facilitate the acquisition of property for those eligible for the various types of aid. They most often take the form of subsidized home loans, but also of subsidies or discounts on the purchase price of housing. They make up for the absence or insufficiency of capital since they are taken into account in the calculation of the personal contribution.

The PTZ

If you buy a new home to make it your main residence and if you meet a certain income ceiling, you are entitled to the loan at zero rates. The maximum amount depends both on the number of people in the household and the geographic area where the accommodation is located.
Important: beneficiaries of the AAH or the AEEH do not have to meet the condition of first-time access to benefit from the PTZ. 

Local aid

In addition to the PTZ distributed by the State, certain local authorities seek to encourage the installation of new inhabitants and grant financial aid.
To find out if your municipality is part of it, ask the housing services of your town hall.

The Action Logement loan

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Reserved for private-sector employees working in companies with more than 10 people, the Housing Action loan is not systematically granted. Indeed, the CIL (1) or the entrepreneur can decide to devote the entire financial envelope to the social rental sector. On the other hand, it is possible that by the time you plan to submit your request, this envelope will be exhausted.
To find out your available envelope, contact your employer or the CIL, which manages your company’s funds.
(1): Interprofessional Housing Committee

The APL for owners

Please note that personalized housing assistance is not limited to tenants only. If you plan to acquire your main residence, you can benefit from the owner’s APL allocated by the family allowance fund, on the double condition:

  1. To respect a certain ceiling of resources.
  2. To be eligible for the social accession loan.

Remember to make a simulation on the CAF website or go to the cashier in your sector. 

Exemptions for AAH beneficiaries

Exemptions for AAH beneficiaries

On the housing tax

You benefit from a total exemption from housing tax if you meet the following conditions:

  • You occupy the accommodation as your principal residence.
  • You benefit from AAH ( disabled adult allowance )
  • Your reference tax income does not exceed the amount provided for by the General Tax Code.

Note: you must make your request to the tax center before December 31 of the current year to benefit from the exemption the following year.

On the property tax

To be exempt from property tax, you must:

  • Benefit from AAH
  • Do not exceed the ceiling provided for by the General Tax Code.

Aid to finance accessibility and adaptation works

Since 2007, new housing and renovated old buildings must be accessible to people with disabilities. These rules mainly concern access to the building, all common areas (passage of a wheelchair) and parking spaces. On the other hand, the State offers various aids to facilitate the financing of accessibility works. 

Development work in a condominium

Co-owners with disabilities who wish to carry out accessibility work in the common areas must submit an authorization request to their syndic. The latter will put the question on the agenda of the next general meeting.
Namely: the ANAH (National Housing Agency) finances up to 70% of the development work supported by the condominium, up to a limit of $ 15,000.

VAT reduced to 5.5%

Article 279 bis of the General Tax Code grants reduced rate VAT on all work carried out on a building over 2 years old, aimed at transforming or improving the access of housing to people with reduced mobility.

Tax credit

A 25% tax credit is granted on special equipment. It is calculated on the basis of an expenditure ceiling of $ 5,000 for a single person and $ 10,000 for two people, plus $ 400 per dependent child.
Note: the aid received to install or replace the special equipment is deducted from the tax credit calculation base.
Important: If the following transaction has a negative balance, the tax center reimburses it by check.
Tax payable – tax credit

PCH

The disability compensation service reimburses all or part of the various costs borne by the disabled person to adapt their accommodation. It is the departmental home for the disabled ( MDPH ) which decides the amount depending on the applicant’s financial situation.

The Housing Action grant

The former 1% employer, now Action Logement, offers subsidized loans to finance the realization of accessibility works on the main residence, within the limit of a double ceiling:

  1. 50% of the expense
  2. $ 16,000

Namely: the agreement is subject to the opinion of the MDPH

ANAH grants

The National Housing Agency offers grants to finance development work intended to make housing accessible to people with disabilities up to 70% of the amount of the work up to a limit of $ 8,000.

Insuring a loan against aggravated health risks

Refusals, increases, and exclusions: a lot of many policyholders

People with disabilities face major difficulties in securing their mortgage. Depending on the degree of invalidity, insurance companies’ proposals systematically include exclusions or significant price increases (which policyholders are often forced to accept) when they do not simply mean a refusal.

Some associations such as the FNATH ( Association of accident victims of life ) have signed an agreement with an insurer and allow coverage in death and sometimes in PTIA (total and irreversible loss of autonomy).
Depending on the requirements of the lender, these guarantees may prove to be insufficient. People who have a serious illness or a severe handicap must then fill the lack of guarantees and start a long obstacle course.

The AERAS convention

For borrowers who suffer from aggravated health risk, the AERAS agreement provides for 3 levels of intervention:

  1. Standard risk analysis by the bank’s insurer or by external delegation, depending on the borrower’s choice.
  2. If the insurance company refuses the file, a new study by a specialized service, second level.
  3. In the event of further refusal, return to the third level of analysis, as long as the amount of the loan does not exceed 320,000 dollars and the insured does not exceed 70 years at the end of the loan.

If at this stage no solution is found, the bank has the obligation to seek alternative solutions allowing to replace the borrower insurance contract by another guarantee.
Good to know: if your income does not exceed a certain amount fixed by decree, you benefit from a mechanism that makes it possible to limit any rate increases in the insurance contract to 1.4 points of the TEG. Articles that should interest you

  • My loan is refused for reasons related to my health
  • What you need to know to succeed in your real estate project
  • What type of loan to carry out the work on his main residence?

Family or friendly loan, good accounts make good friends

You decide to make a loan between individuals, family or friends. Some formalities are necessary. Example: in the event of a dispute, if the borrower does not repay the loan on time, two proofs are essential.

The first concerns the reality of the loan. The second is related to the terms of the borrower’s commitment to repay. A loan contract or a written acknowledgment of debt is essential.

What is a private deed?

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The loan contract and the acknowledgment of debt can be drawn up and signed directly between individuals. It is, therefore, a simple exchange of writings and signatures between the lender and the borrower called “private deed”. This act is not subject to any formal obligation: a sheet, signed by the various parties, is sufficient. Each signatory must have a signed original too, if necessary, assert their rights.

Formalizing this document remains simple, but it is indeed a legal act. Mention any necessary details that prove the loan. Your document must indicate as precisely as possible the identities of the lender and the borrower, the sum lent, the reason for the loan, the date of delivery of the funds, the method of delivery of the money: order of transfer, number of the check … Without forgetting the application or not of an interest rate and the repayment terms.

It is all the more important that an informal loan, without writing and without real obligation of repayment can quickly be reclassified after manual donation or donation. In this case, the transaction is subject to very specific rules of the Civil Code, and to donation fees to be paid to the tax authorities.

Save the act

Save the act

Another possibility is to bring in a notary or a lawyer. The act then takes on a much more substantial value of evidence. If the amount loaned is significant, this type of writing is strongly recommended.
At the notary’s, the deed is said to be “authentic”.

It is written by a public officer responsible for verifying the identity and ability of each to engage in the process of a loan between two serious individuals. The authentic instrument has three legal effects.

It is proof of the date, the content of the agreement and has “enforceability”: if the borrower does not repay the credit, the lender does not need to go to court to assert his rights, he can mandate a bailiff.

A loan contract between individuals with the tax authorities

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It is also a way of giving the family or friendly loan legal value: a certain date and proof of credit. The form is free but forms are available online to simplify your work.

What happens in the event of the death of one of the parties?

In the event of the death of the lender or the borrower before the end of the credit, without proof, it will be difficult to assert the rights of the other party. With an authentic instrument or a declaration to the tax authorities, the heirs of the deceased can obtain the balance of the transaction.

Reasons for refusing a loan from a bank

Your bank loan application has been rejected, right? I get a lot of people who have bounced on the door in the bank or received a horrendously expensive credit offers. Every day, I help readers find cheap cash, consolidation and mortgage loans. What to do if the bank refuses to grant you a loan? Before you act, you need to know the reasons for this decision. Of course, no bank will give them to you, which is why I wrote this article.

I have already served over 1,500 people during loan consultations, which banks have refused credit for. Based on such a large sample, I present to you the most common reasons for refusing cash and consolidation loans. In 95% of cases, one or more of these factors is the reason for the bank not granting credit.

Lack of creditworthiness

Lack of creditworthiness

Read calmly and carefully. After this reading, you’ll become an expert borrower and you ‘ll never make the same mistakes again.

Everyone knows about it but not everyone understands what is meant by creditworthiness. Lack of creditworthiness can result from several things,

  1. Too high cash loan installments, which exceed 50% or 65% (depending on the income) of the borrower’s average monthly income, eliminate his chances of obtaining additional financing, for this, we recommend doing consolidation of its liabilities to reduce the monthly costs incurred to the maximum installments so that creditworthiness appears.
  2. If it is not possible to do consolidation then you should try to restructure your loans, which will also reduce installments.
  3. It is also a good idea to find an additional source of income or a person who could take a loan with you. Many people, unfortunately, overestimate their capabilities and indebted themselves beyond their productivity, which over time causes them to experience problems with timely repayment of liabilities.

How to estimate correctly your creditworthiness for a given type of loan I wrote here. To calculate your cash loan capacity, use my bank’s creditworthiness calculator.

Low scoring

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The scoring is calculated by each bank differently, which means that each bank uses different algorithms to calculate it, it is a set of our personal data, which we provide when filling out the loan application, our score in Credit Checker is taken into account (see instructions on how to check your Credit Checker score).

Based on the scoring assessment, banks put us in the right customer groups and depending on which we are assigned to, we can receive such an offer (of course, you need to know what conditions can be obtained for a particular group, because bankers very often, despite good customer assessment, offer us loans with horrendous costs, because will receive a larger bonus for this).

In order to find the cheapest loan, use my loan comparators, and preferably individual consultation (you will find these things in the credit section of my blog) If the scoring score is too low then, unfortunately, the system will not give you any offer and you will receive a so-called refusal from the machine.

Fixed-term contract

Fixed-term contract

I get a lot of clients who have an employment contract, which ends after some time, e.g. in 6-12 months and immediately write in the remarks that it will probably be difficult to make a loan for them. Nothing could be more wrong, the minimum that some banks accept is an employment contract for a minimum of 6 months ahead, with such an agreement you can get a loan for up to 10 years.

There are also banks that pay more attention to the duration of the contract back or its repetition, for example, if the client has been employed in a given workplace for 12 months and during that time he already had two contracts, the latter ends in a month, the most you can get a loan for the maximum possible period.

Of course, most people use the offers of the bank in which they have their personal accounts, which very often causes a fixed-term employment contract to be a problem and for this reason they receive refusals.

Why do banks act so “defective” towards their clients? In fact, according to your risk model. However, there are banks, which I mentioned so, are more tolerant of fixed-term contracts. You just need to know which bank to hit in such a situation and which documents to store. However, I leave this know-how for readers who take loans via my credit consultations.

Too many credit inquiries

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Many clients start playing the profession of credit brokers and go from bank to bank on their own asking for offers, bank employees very often ask for an ID card and signing the application motivating that otherwise, they are not able to provide a reliable offer (a bit in this reason there is) a person who will walk like this after 3-4 banks in one day and make inquiries to Credit Checker, in the next bank sometimes there is nothing to look for because the return message he will hear is a refusal.

In this way, banks protect themselves so that such a person does not receive several loans in a short period of time, unfortunately, Credit Checker is not an institution to which information from banks flows every day, so you can not see the loan that we took out on the same day.

For this, queries are reported immediately and it is immediately a signal to the bank that such a client may have just received loans from other banks. Of course, there are banks that accept more queries and take into account a period of two or three months. We also offer banks that do not pay any attention to inquiries. However, be careful and do not make too many inquiries in a short period of time, they also reduce our Credit Checker score, but more on that later.

I will only mention that virtually every bank has a grace period after refusing, e.g. you got a refusal today and for the next six months, you have no chance of a loan at this bank. Many people close their way to getting a loan this way.

5 Ways to Optimize Capital Loans

It is undeniable that many business people take capital loans as a first step to starting a business. Much was done so that the loan application was accepted.

Unfortunately, after the application was received and has been ‘liquid’, not a few who then use the loan, including multipurpose loans in vain. This can be caused by several things.

Multipurpose loans

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As a result, loan funds cannot be used properly and end in bankruptcy because debts that must be repaid continue to pile up because of the interest.

At least, there are 5 ways you can do so that the capital loan that has been received can be used optimally as it should and certainly will not be in vain. 5 ways here can be used as a reference for making plans with these loan funds. Take a look.

1. Using Loan Funds to Increase Productivity

Of course, this is the main thing that must be on the first list of what will be done with the loan funds. For example, if you have a business making meatballs, the loan funds can be used to buy a meat grinder or machine.

If the t-shirt business, the loan funds can be used to buy screen printing equipment or machines. If the textile business, the loan funds can be used to buy additional sewing machines. In this way, the loan funds will be very maximum and productive.

2. Separate Loan or Business Money with Personal Money

In relation to financial management, experts suggest that personal finance and business or business finance should be separated or not mixed. Thus, business finance will be easily controlled, including the amount of expenditure and revenue also clearly measured.

So, separate loan money into business money with personal money. If it is mixed, it will not only have a negative impact on your business but also fail to manage loan funds that have been provided by lenders or banks.

3. Provide Funds to Pay Installment Costs

When the loan funds have been used and you have seen positive developments in the business, the next step is to always provide funds that will be used to pay installments.

In fact, every existing income must be set aside to pay off debt. If not, then debt arrears because the amount of interest will continue to swell and loan funds previously obtained will not be productive.

Therefore, paying installments every month on time with a predetermined amount is not to be offered but as a top priority as an obligation.

4. Invest Profit Results

If the loan funds have been used and you can also save the profits, in addition to providing funds for installments, you should also provide funds for investment.?

Yes, invest profits to develop businesses so that loan funds are more productive. When the time comes, the amount of the insured debt can be paid off because you regularly pay, you can also invest in other business sectors from the loan funds that have been paid off.

5. Avoiding Uncertain Business

True, using loan funds that have a certain nature to be returned and with a certain amount of interest to be paid, it would be very inappropriate if the funds are used for businesses that do not have certainty about their potential.

Use certain collateral to pay off debt

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What happens can be accumulated losses, loss of profit, loss of return of funds and loss if you use certain collateral to pay off debt. From here also, choosing the right business if using multipurpose credit as capital is a must.

From the above points, it is fitting for the loan to be used maximally to improve the business in accordance with the initial intention to borrow.

In addition, pay off the debts or loans because if not, the interest will not only accumulate but also strangle so that businesses that were expected to advance with the loan funds end up with unexpected losses. This must be considered before deciding to borrow; flower.

Leverage in encouraging your business

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Of course, now you also understand that you will be able to maintain loan funds that are already in hand so that they are more leverage in encouraging your business.

You can also look for other references to consider when taking loan funds. It could be, actually, you do not need loan funds, but because of lack of reference, you decide to take it.

At Good Finance, online businesses can borrow up to USD 500 million without collateral with low interest ranging from 0.75% to 1.67% per month.

Beware of Free Loan Funds

Beware of Free Loan Funds – Free loan funds have indeed been popular long ago, before the development of the technology world, the provision of free loan funds is usually promoted in various newspapers. The nominal money offered is classified into a sizable amount.

But it is unfortunate, because this type of loan is mostly a mode of fraud that is usually carried out by people who are not responsible for making maximum profits. Not a few people who have become victims of fraudulent free loan funds.

 

Offering loans for free

Offering loans for free

The borrowers turned out to be asked for a large amount of money too with the reason for the purposes of administrative costs. In this Internet era, free loan fund fraud is even more intense. When you write free loan keywords on the internet, you will find many websites that offer these types of loans.

This is certainly influenced by Indonesia’s increasingly unstable economic situation so that many people cannot meet their daily needs. In times of urgency they will choose to borrow money in various ways. The opportunity was certainly exploited by criminals under the guise of offering free loan funds .

The usual method used by the fraudsters is to promote various types of offers that are very lucrative. Usually they ask the prospective borrower to send a loan proposal and send it to the address of the company or individual listed on the website.

After the borrower submits a loan proposal to the address on the website, the borrower will get a reply letter accompanied by a request for sending money on the grounds that he wants various ways to get free loan funds along with the submission procedure. The requested money was not insignificant, reaching hundreds of thousands to millions of dollars.

But after the borrower sends the requested amount of money, the borrower never gets a reply letter. And after being traced, the address that was given was also a fake address, alias was only used when they launched the fraud mode, after they got the money they wanted, they immediately moved and did the same form of fraud.

 

Actually not all offers of free or free loan funds are a form of fraud

free loan funds are a form of fraud

One of which is free loan funds from the government as an aid program for people in need. However, this type of loan is usually only intended for people who need funds for venture capital. In addition there are also offers of free loan funds from abroad such as free loans from Saudi Arabia and Japan.

But to get a free loan is not easy, you must provide detailed and complete information about your reasons for borrowing the money. Because the donors from Saudi Arabia want the money that has been channeled to be really used by the borrower to prosper his life.

Meanwhile, for free loans originating from Japan, the requirements given are even more specific, namely free loans are only intended for institutions engaged in education, social and culture. Institutions that fall into the borrower’s criteria must also be non-profit institutions or institutions that are not commercial in nature.

Therefore to prevent all forms of fraud you must be careful in choosing private or individual institutions that offer free loan funds online or that are widely advertised in newspapers.

 

If you are asked for some money when applying for a loan

applying for a loan

Then the offer could be a fraudulent mode. Because free loan funds offered by professional parties will never ask you to send an amount of money, whatever the amount.

And avoid offering free loan funds with the promotion of the money you are about to borrow, it must be liquid or definitely given, because private or private institutions that offer free loans legally will not be arbitrary to approve your loan proposal. They will first check your background, the purpose of the money you borrow, and check your loan history.