The Calculation of Anatocism: Excessive Interest on the Loan

The calculation of anatocism is an operation that can be used by a bank’s client to prove that it has suffered excessive interest on its loan or mortgage. This is what we talk about when discussing banking anatocism: the practice adopted by credit institutions to make the customer pay “interest on other interests”, through the compound capitalization calculation mechanism. We remind you that this operation constitutes a civil offense and is expressly prohibited by Italian law, also confirmed by some judicial decisions.

The calculation of interest

The calculation of interest

The calculation of interest and compound interest is carried out by law firms or consulting firms that assist their clients in any disputes with the bank. This is an operation that can become very complex: however, we will try to explain to you in a simple way how it works, so that you can be prepared in case you suspect you are paying undue interest.

The quarterly compound capitalization mechanism implies that instead of being calculated only on the loaned capital (simple interest), the interest also takes into account the interest that has already expired, ie relative to installments already paid by the customer. In this way, the basis on which the percentage expressing the interest rate is calculated tends to grow at each quarterly maturity and makes the payment of interest more expensive. In fact, the customer does not pay interest calculated at the end of the year on the capital, but on the sum of capital and interest that grows at each quarter.

Let us look at a simple example of the calculation of anatocism to explain this concept more clearly. Consider a loan of 1,000 euros, with a 10% interest rate. If the bank behaves correctly, the annual interest to be paid will be equal to 100 euros, then 25 euros each quarter. Through compound capitalization, however, the bank could calculate the payment of the second installment on the sum of the loaned capital and the interest already paid with the first: instead of paying 25 euros, with the second payment if they would pay 25.625. By performing the same operation at each quarter, the weight of interest would grow more and more. This is precisely the danger of anatocism.

We must therefore pay attention to the amount of interest that is paid. If you then turn to a professional who intends to carry out the calculation of compound interest precisely, it will be a good idea to present yourself with all the documentation relating to your relationship with the bank.

Where Will We Get a Loan for PLN 0?

 

Loan companies are trying to attract new clients as effectively as possible. And you can safely say that in this respect they are real masters. Namely, loan companies have been offering a promotional financial product for a long time, which is a payday for PLN 0. This means that loans are granted without additional costs. But the condition for granting them is to be a new customer. Criticism at http://123web-directory.com

Individual loan companies offer specific loan limits. Namely, we can borrow the most as new customers at Hypocredit. This loan company is able to give us a refund of PLN 1,600. However, one of the lower loans will be obtained at GlobeLoan. There, we will be able to borrow no more than 600 zlotys.

The condition to receive a free loan

The condition to receive a free loan

The loan will not be charged any additional costs provided that we repay the entire amount on time. If we start to delay the regulation of debt for one day, loan companies will start to charge us with interest penalties. We will also be required to pay a fairly high amount for postponing the repayment date. Another month for repayment will be combined with fees amounting to as much as 25 percent of the debt incurred.

Quick payday loan!

szukanie odpowiedniej pozyczki

Payday Loan, or a cash loan owed its name not only to the fact that it is granted only for a moment. But we can also expect that the money borrowed very quickly will be on our account. However, in order for it to actually happen, we have to fulfill some basic conditions.

First of all, our verification should go completely smoothly. Therefore, we can not demonstrate the lack of identity card, permanent residence in Poland or the lack of regular income. Our surname should not appear in the databases. In this way, we are checked if we do not have any outstanding debts. What, unfortunately, could contribute to a negative decision.

The last factor is having a bank account that is preferred by a specific loan company. Then, with all favorable factors, we are able to receive money even within 15 minutes of approval of our application. And if we receive a positive answer, but we will have a personal account in another bank, then we will be able to wait until the next business day on the transfer. For people who are waiting for a quick injection of cash, this information can unfortunately be uncomfortable.

Do We Have a Chance for Cheap Loans?

The financial sector in the sale of non-cash loans is becoming increasingly problematic. Such a result was not accidental. Because payday loans are much easier to get now than loans in traditional banks. First and foremost, customers do not have the hard credit rating they need to show, and many companies do not check the financial situation of the customer in the Credit Information Bureau.

However, loan companies, although at the beginning of their activity, independently set the rules of the game, have been under greater control of the Polish Financial Supervision Authority for some time. In addition, the Office of Competition and Consumer Protection is responsible for them. The more payday payments are given, the more interest the listed offices show. As a consequence, regular changes have been introduced for some time.

Lower payday costs

Lower payday costs

Until some time, the payday loans from banks were different mainly because customers did not know exactly what costs they would incur as loans. I guess you do not have to guess for too long that the talk is really very high amounts. Therefore, the Polish Financial Supervision Authority has introduced a provision regulating the interest rate. At the moment, it can not exceed four times the Lombard rate of the National Bank of Poland.

In addition, there is still a plan to cut costs charged outside interest rates. And here such a move would have a very strong impact on non-bank companies themselves. Namely, smaller companies, managing much smaller capital and at the same time focused on pure profit from borrowing costs, would disappear entirely from the financial market. But not only. The leading companies in Poland will also see a drop in profits. These include, among others, Express Cash Register or Tongabank. Could this mean the end of a career for almost 1/3 of loan companies?

The project of cost reduction

The plans include mainly the provision for non-interest costs. They should not exceed 25 percent of the total loan. At the same time, we can expect that in each subsequent year we will only be credited with 30 percent of the full payout taken.

Another suggestion is to add all costs of a payday in a period of 120 days, or 4 months. Therefore, if the client extends the loan repayment period, it will continue to be in force as in the case of repayment. It is not to be concealed that currently it is the highest non-bank revenue ratio for the time being. Some of them even amount to 50 to 200 zlotys for sending a reminder with a reminder of repayment of the loan. And after the project comes into effect, it will be a decidedly high amount.

According to the planned laws, consumers will be protected. But unfortunately, many non-bank companies in this respect will most likely have to close their operations. So far, no final decision has been made whether the project will come into force or only stay at the planning stage.

Office of Competition and Consumer Protection

Office of Competition and Consumer Protection

Dunkor is beginning to become more and more interested in what costs are charged by non-bank loans. For the time being, the activity of this institution was limited to contacts between companies and consumers who could not resolve disputes on their own. But there are many indications that it will soon be in charge of all matters related to loan companies. In this way, the Financial Supervision Authority could make up for its arrears.

Small Loan – Payday Loan

Bankpola is a credit provider of mining loans, also with BKR or without BKR testing. You can borrow a sum of money between 50 and 1000 euros within 20 minutes. Therefore, Payday is ideal for closing small loans. If you are looking for a quick, small loan, then Payday is perhaps your lender. Payday can be seen as a kind of advance on your salary.

Conditions flexible credit at Payday

Conditions flexible credit at Payday

To conclude a loan at Payday, you have to meet a number of conditions. Firstly, you may not have a late payment at the time of application. If you already have another loan and you have not met the payment terms, you cannot close a loan at Payday. However, if you have a negative BKR, you can basically just borrow money at Payday. At Payday you have to deposit a deposit. A friend or perhaps a family member can stand surety for you, but you can also take out insurance for the guarantor.

Borrow money at Payday

Borrow money at Payday

You can borrow money at Payday as follows. First you fill out a non-binding application form, which takes about 5 minutes. After completing the form, your request will be checked by Payday and you will receive a provisional account. Once you have an account you can borrow money from Bankpola. You can borrow amounts between 50 euros and 1000 euros, but the first time you borrow money at Bankpola you can only borrow 400 euros. After approval, the requested amount will be paid to your account as soon as possible. Applications are processed between 9.00 and 21.00 on working days. On Saturday this is between 10.00 and 18.00.

Minilening with BKR

Minilening with BKR

At Payday you can, as I have said, close a minilig with BKR. However, you may not have late payment if you are going to borrow at Payday.

Minilening without BKR testing

A minilening without BKR testing can also be closed at Payday, because your BKR is not looked at.

Maximum payday loan

Maximum payday loan

In Bankpola can lend you up to 1,000 euros. You can borrow up to 400 euros for your first loan. Payday first wants to investigate whether you are fulfilling your appointments.

Too late paying off a Payday loan

Too late paying off a Payday loan

What happens if you do not pay off your mini credit with BKR at Payday? In that case, the statutory interest will be charged, which will be between 2.2% and 4.4%. Also, collection costs are charged, which are at least 40 euros. It is therefore highly recommended that before you close a loan at Payday, be sure that you can pay it off. If you pay the loan neatly back in time, then you have no costs other than the loan amount. If you are too late, then your loan can suddenly become very expensive.

Maximum maturity Payday

Maximum maturity Payday

The maximum maturity of a loan at Payday is 30 days, so you have to repay your loan quickly. Make sure you pay off your Bankpola loan on time, so that you get no problems. You must pay off your loan no later than 12:00 noon on the last day of the term.

Unlocking funds from your real estate loan at the notary

No payment to the borrower

No payment to the borrower

Know firstly that in any case, the settlement of the mortgage can not be made to your order. The bank will release the funds directly to the order of the notary if you buy an old home or send a payment to the developer if you buy a new home with each call for funds, in accordance with the reservation contract attached to the loan offer.

On the other hand, the disbursement of the funds is the fact triggering the payment of interest on the mortgage. It must intervene within 4 months after the signing of the prior offer.

Case of successive releases

Case of successive releases

If you plan to borrow to carry out work in your home or if you buy a new property (principal residence or rental investment), the release of funds will be done in a successive way. You will then have to pay the interim interest, that is to say the share of interest corresponding to the amount released by the bank.

Numerical example of fund calls

Numerical example of fund calls

Imagine that you borrow 200,000 euros to 4.5% for the purchase of a new apartment off-plan (sale in future state of completion) and that the disbursement is made according to the diagram below. (We simplified the calculation on the assumption that calls always took place on the 1st of a month). Just like a loan in fine, the borrower only pays interest until the last release.

January 1, 2012 Signature of the reservation contract 5% € 10,000
May 1, 2012 Opening of the site 20% 40 000 €
July 1, 2012 End of foundations 10% € 20,000
December 1, 2012 Floor 2nd floor 10% € 20,000
may 1st, 2013 Out of water 20% 40 000 €
August 1st 2013 Out of air 20% 40 000 €
1st October 2013 Completion of the works 10% € 20,000
December 1, 2013 Return the keys 5% € 10,000

Cost of interim interest

January 1, 2012 € 10,000 X 4.5% X 4/12 150 €
May 1, 2012 € 50,000 X 4.5% X 2/12 $ 1,125
July 1, 2012 € 70,000 X 4.5% X 4/12 € 1,050
December 1, 2012 € 90,000 X 4.5% X 5/12 € 1,687.50
may 1st, 2013 € 130,000 X 4.5% X 3/12 € 1462.50
August 1st 2013 € 170,000 X 4.5% X 2/12 $ 1275
1st October 2013 € 190,000 X 4.5% X 2/12 $ 1425
December 1, 2013 Amortization of capital

As can be seen from this example, interim interest is expensive for the borrower, who will have to pay out more than 8,000 euros before starting to depreciate the capital.

If you have a cash flow problem, you can ask the bank to incorporate the interim interest in the home loan. They will then be repaid over time and will not enter into the calculation of the debt ratio.

Attention in case of insurance delegation

Attention in case of insurance delegation

If you subscribe to the group contract, the bank will take care of the contract edition. On the other hand, if you opt for an external insurance, it is you who will have to make sure that everything is in order on the day of the disbursement and in particular to the edition of the delegation, the particular conditions and the definitive contract.

Stamp duty on current account, deposit account and personal loans

Personal loans 

Personal loans 

Stamp duty on current accounts, deposit accounts and personal loans is an expense that anyone who opens or subscribes to one of these banking products must be prepared to face. This tax is in fact widespread and is generally paid at the time of the request, production or presentation of a certain documentation. The stamp duty can be paid, for example, at the time of signing a mortgage for the purchase of a new home. This tax tax can be fixed (a certain amount must be paid regardless of the documentation requested) or variable (in this case, it is expressed by a percentage of a certain expense incurred).

The stamp duty on the current account is fixed and its payment is requested to those who hold a current account, including postal current accounts and checkbook accounts. The cost of the stamp for these products is € 34.20, if the account holder is a natural person. Payment can be made by debit on a quarterly basis with 3 installments of 8.55 euros each, or every month, with payments of 2.85 euros. Current accounts with an average stock of less than 5,000 euros (“no tax area”) are exempt from stamp duty. If, on the other hand, the account is in the name of a natural person (a company or an association, for example), the stamp duty costs 100 euros a year.

The operation of the stamp duty on deposit account, on the other hand, is different: the stamp duty for natural persons is not fixed, but is equal to 2 per thousand of the sum invested in this financial instrument. It is therefore variable and rises to the growth of the sum on the account. For legal entities, on the other hand, there is a maximum limit of 14,000 euros.

Finally, the stamp duty on personal loans constitutes one of the fiscal charges counted by the APR, the interest rate which also calculates the accessory costs of a loan. As regards personal loans up to 18 months, the stamp duty costs € 14.62, whose payment is made through the first repayment installment of the loan. To this expense, an additional stamp duty of 1.81 euros must be added linked to the production of the banking documentation necessary to the opening of the loan. The payment of this small sum takes place together with the costs of opening the case.

Where to Quickly Borrow Money with Any Loan History?

Good reputation and constant contact with the microfinance company will ensure uninterrupted cash flows in a difficult financial situation. Permanent borrowers of any large MFI can quickly borrow money on the card is not difficult – the robot program will process the application in a couple of minutes. A request for a small amount will receive a positive decision from citizens with any payment rating. customvmail.com for clarification

Where to quickly borrow money? List of companies

Where to quickly borrow money? List of companies

MFI Percent Amount
CashMan best MFI from 0% up to 60 000 
Surf-Loan % for new customers from 0 up to 30 000 
Domo Zeifer from 0.63% up to 30 000 
Credit One from 0.23% up to 30 000 
S-Carrot without failure from 0% up to 30 000 
Cash Immediately % for new customers from 0% up to 30 000 
Loan Plaus % for new customers from 0% up to 30 000 

We represent microfinance organizations where every adult Russian can urgently borrow money. If, when contacting bankers, it is necessary to collect a whole list of papers to confirm creditworthiness, the MFI will believe right away – from the moment the application is submitted until the money is received in the account, even an hour will not pass.
When making a request online, you only need a passport. The potential borrower fills in all the fields independently, and then sends the request for review. In many leading MFIs, a robot evaluates user requests, and it also makes a decision to issue money or refuse a client. Thanks to computer processing, the decision-making speed has increased significantly – in some MFOs, sms with approval is received on the borrower’s phone after 1-2 minutes.

If you have access to the Internet, you can immediately borrow money on the card at any of the companies listed below. Carefully review the conditions of consideration, select the appropriate option and apply for a microloan.

Mug Loan

Mug Loan

This company is one of the leaders in the Russian microfinance market. MFIs’ regular clients are given loans of up to 100,000 per year, but for beginners, whose payment discipline is not known, they will first issue a monthly transfer of 15,000 rubles. Funds are even given to those categories of citizens with whom banks do not work – students, young mothers on maternity leave, and age retirees.

Cash At Home

Cash At Home

This service will issue to remote clients from 1000 to 54000 rubles for a period of 1-175 days. An important plus for the client of this MFI is a positive credit rating. Otherwise, it is worth applying for only a small amount. Overpayment on the loan will be from 0.5% per day of the use of borrowed money. Design feature – courier delivery of a loan to your home or work.

Square Loans

Square Loans

If you still don’t know where to borrow money urgently, consider the Loan Center rates. A client who has indicated his passport data in a questionnaire will be transferred to a card up to 100,000 rubles – an amount well worth it to hold out until salary. For doctors, teachers and retirees special rates apply. New clients of MFIs can get an interest-free loan of up to 7,000 rubles.

Froy Credit

Borrow money quickly with any credit history.

In this company for long-term loans minimum rates apply. Clients who have issued a loan for a year will receive money at a rate of 0.12% per day. The available credit limit is as much as 200,000, the repayment duration is no more than 3 years. The minimum loan amount is 10,000 rubles, payments are made no more than once a month.

Money Borrowed

Money Borrowed

Another popular MFI with high loyalty to all categories of potential customers. From 10,000 to 60,000 at a rate of 0.8% per day will be transferred to the card. A prerequisite is a meeting with a company representative or a visit to the nearest micro-creditor office. Funds are available upon presentation of a passport, earnings certificates are not required.

What you need to know the client when applying for a loan?

What you need to know the client when applying for a loan?

When choosing between MFIs where you can borrow money quickly and without problems, stop choosing companies with a convenient way to transfer funds. If it is convenient for the money to “fall” on the card, choose one organization, and when it is ready for a meeting with a courier, another microcreditator.
The next important parameter is the interest rate for using cash. The lower it is, the lower the total overpayment will be. Minimum rates offered for loans for the long term, the maximum overpayment for express loans. However, when making a term loan, the lender can “close his eyes” to the damaged CI, whereas a long-term loan with a penny overpayment will be received only by a citizen with an excellent payment rating.

How to improve credit history through MFIs?

How to improve credit history through MFIs?

If your goal is to borrow money urgently, but it cannot be done due to failures in banks, your credit history is most likely hopelessly damaged. MFI services will help restore the rating, if you apply for and return a series of credits on time – take a loan for 1000 rubles and close the loan in time. And so several times. Ask the micro-credit company manager to send data to the History Bureau as quickly as possible, and you can get a bank loan in a few months.
The easiest and most convenient way to pay off debts is to use the same credit card to which money was withdrawn. Go to the online office of your bank and make a payment to the MFI according to the details specified on the website or in the receipt.

It is urgent to receive money within an hour so far only in the MFI. Banks are only testing and very reluctant to introduce such a service. Bank loans with quick approval will be given out only to a small share of loyal customers, while everyone will receive a loan from an MFI – including borrowers with a bad credit history.