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Loan

What are syndicated loans?

 

Uses and meaning of syndicated loan

Uses and meaning of syndicated loan

A syndicated loan, also called a syndicated loan, is issued by a specific group of lenders. The majority of these are commercial and investment banks involved in structuring, managing and organizing the allocation. In some country, the syndicated loan market is very important. A syndicated loan is granted by several banks to a borrower as a single loan. A bank takes over the management within this banking business, which is why the term syndicated loan is appropriate.

Reasons for joint lending

Reasons for joint lending

But why are several banks granting a single person a loan and why can not a single bank do that? In fact, the reason here is the amount of credit. It is so much money that a single bank can not afford this sum to make it available to the customer. Of course, this is accompanied by enormously high demands on the minimum equity investment. Another reason is that a single bank might be able to raise the sum, but this does not want to because of the existing risk. Because a high loan amount always means a big risk.

Who receives syndicated loans?

Who receives syndicated loans?

In fact, individual individuals do not simply receive such high credit that they can not be granted by a bank. As a rule, large companies or public institutions use such a loan. With the money then usually large investments are made. This fact is not insignificant for the bank, even in the area of ​​collateral.

Risk distribution at the lending banks

Risk distribution at the lending banks

The lending banks share not only the credit itself, but also the associated risk. Of course, any losses incurred are shared, so that a loan default only has to be borne in part. It is important that the existence of the bank should not be jeopardized by a single loan. Predominantly in the euro market, this type of lending is increasingly used. The repayment term here, like all other loans, is between 2 and 10 years.

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Loan

What is a student loan?

What is the student loan for?

What is the student loan for?

In general, the study should be financed with a student loan, if private funds are not sufficient to continue the studies. Thus, the student can get more time, for example towards the end and in the examination phases, when they are no longer sustainable with the job. Or if the rents in the study area are too high to be paid out of pocket. Student loans are freely applicable and variable in amount. Of course, they have to be repaid later along with interest. Some institutions offer the loans between 10,000 and 50,000 euros. The payment for a student loan is usually made monthly in installments, which the student can determine himself. In other cases, a loan can also be paid out in full, if perhaps a stay abroad should be financed.

Provider of student loans

Provider of student loans

Student loans were rather difficult to come by not so long ago and were not offered by all banks. There is now a wider offer for students who do not have good credit ratings and income levels. Education funding is very important nowadays and more and more institutions are offering good offers. 

How are student loans checked?

How are student loans checked?

Generally, every credit request is checked for creditworthiness. Of course, the institutes know that students do not yet have a large income and can only score with a small side job. Therefore, a separate procedure had to be used to check the creditworthiness. A first step is the inquiry of the credit bureau.Student loans or education loans, after all, also want to be on good terms and so it may be natural that a student receives a permit only up to a certain amount. Public education loans can only be paid up to a total of 7,200 euros, while banks can allocate up to 50,000 euros.

Requirements for student loans

Requirements for student loans

Grants are always tied to the borrower under conditions. So a certain age limit must be reached and the credit bureau should have no negative entries. In some cases, a guarantor may be needed to get the loan approved. The credit rating is of course the most important criterion. So also the income and expenditure are checked. Therefore, it is also important for a student to deal wisely with his income, even if it is not high. This shows a responsible use of money.

Furthermore, the loan is also tied to the duration of the study. Anyone who is within the standard period of study has a good chance of obtaining a permit. However, the institutions have different rules, so that exceeding the study period does not necessarily mean a rejection for a loan. It is also important that the applicant has German citizenship. Student loans for foreign students are possible.

Student loans as a possibility

Student loans as a possibility

Students should always be aware that the monthly incoming credit money is only borrowed and must be repaid. For this reason, the actual loan requirement should be determined before the loan request. This includes the cost of living, rent, tuition and other payments. These are offset against the given revenue. Now the need can be identified, which should not increase suddenly due to private amusements.

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Loan

Compare loans outside your home bank, is that a good idea?

All your services at your home bank is pretty handy. This way you have everything in one place and you know where you can go if you want to make a transfer or the like. But everything at one and the same bank also has the disadvantage that you will not compare the offer. Certainly if you want to request a new service such as a loan. Comparing loans is best done to keep the costs on that service as low as possible. Thanks to the websites of the banks you can do this yourself and in your own environment.

Bank loan in your area

So you no longer have to go to the bank in your area. That takes a lot of time and you see just another proposal. By searching the internet you can compare numerous banks in no time. The handy tools they have are also made to attract new customers in that way. In this way, the bank itself does not have to release anyone to help a customer. In addition to the simulation tools, you can also find a lot of information about loans.

When you are ready to compare loans, you can enter an amount in the simulation. The amount depends on the project that you wish to finance. That can be a home, or a car, possibly another project. You have a loan type for every subject. Choose the right simulation tool for the right project. This is how you arrive at the calculation with the correct data and percentages. Because for a house you have different costs than for example for a washing machine that you want to buy with a loan.

If you start a calculation then you must look carefully at the APR or annual cost percentage. That percentage shows how much the costs will be. You will also see the calculation and you will see the costs listed separately. That way you know exactly what you have to pay extra and how much you have to pay for the loan each month. Do this exercise at all banks and keep looking for the lowest costs. That is the most interesting for your portfolio.

Apply loan from your home bank to another bank

So it is certainly a good idea to apply for a loan from another bank than from your home bank. You must be able to request any service at a bank at the lowest cost. The less you have to pay, the better. There are other costs that you have to pay monthly and what you can save is a bonus. And since banks themselves offer to compare loans through their website, you can also use it. It takes some time, but as soon as you have done a few banks you can quickly see where you can go.

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Mortgage Loan

Where can I go for a simulation of my mortgage loan?

You no longer have to go to a bank branch to get the first information about a mortgage loan. There is a lot of info about this topic on the internet. Websites are full of information, and of course also at the banks themselves. They only have an extensive website where you can go for information and simulations. With the latter you can calculate to the nearest cent what the loan will cost you per month. And how many costs are in addition to the capital.

Interesting or not?

Interesting or not?

And that makes a mortgage loan interesting or not, the costs that come with it. You have to pay them anyway, but the lower, the more interesting of course. Because that means that you can borrow more capital and have to spend less on costs alone. So make sure you compare as many banks as possible to find the lowest costs. Buying a home is a serious investment. It costs you a lot of money, a loan takes up most of your monthly budget. And then you have many other costs, such as insurance, renovations, materials and so on. So make sure that you have secured the loan with the most interesting conditions at the time of application.

Continue to compare until you find the mortgage that you want to buy your home with. And once you find it, you can go to a bank branch. Because for a home loan, there is a lot more to it. The bank will check whether you can handle the loan. To calculate that, you have to count on such a processing time of 2 weeks. You will then be informed by the bank whether you can borrow or not. That depends on the income and expenses that you have at that time. So a stable income and no other or few loans. Because you can only spend 1 / 3rd of your income on all loans together. This is to ensure that you can still live comfortably.

Bank will estimate

Bank will estimate

You will hear all the information in such a conversation at the bank branch. If it is an existing home, it is possible that the bank will first send an estimator. He must estimate what the property is worth and that will be aligned with the amount you wish to borrow. Even if you still want to do renovation work and want to borrow extra for this, then an estimate will be made of this. In this way, the bank has an idea of ​​what exactly will happen and how much the value of the home will be. They do this if you can no longer pay back the loan, then they know how much they can sell the property.