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Loan for free professions

 

 

Loan for free professions can be offered on much more favorable terms than a classic cash loan. Freelancers are “exemplary consumers” for banks.

All financial institutions, in particular banks of each client are treated individually. Representatives of specific industries and professions can sometimes count on special treatment and access to more attractive financial products. One example is a loan for liberal professions, ie cash loan for doctors. Who exactly is entitled to apply for such a loan? Are loans dedicated to free professions really very profitable? We will try to answer this question in today’s article.

Loan for freelancers – who exactly can get it?

Loan for freelancers - who exactly can get it?

It is worth knowing that in law there is no exact definition of a “liberal profession”. However, this concept is often used in everyday life and in professional contacts. Freelancers are those who can boast of high qualifications and are self-employed, ie self-employed.

There are also those who equate free professions with professions of public trust. In this sense, all professions that have professional self-government in accordance with law are free profession. The common denominator of all professions of public trust is of great importance for the public interest of the country.

Which professions can be included in the group of free professions? Here are the most popular freelancers:

  • Legal Counsel,

  • judge,

  • lawyer,

  • notary,

  • vet,

  • tax advisor,

  • bailiff,

  • doctor,

  • probation officer,

  • nurse,

  • midwife,

  • the auditor,

  • architect,

  • laboratory diagnostician,

  • Civil Engineer,

  • programmer,

  • IT specialist,

  • farmer.

What are the benefits of applying for a liberal profession loan?

What are the benefits of applying for a liberal profession loan?

The rules for applying for a loan for professional professions are usually very similar in all banks and institutions except for us. Here are the most important benefits of applying for a liberal profession loan:

  • possibility of negotiating loan terms,

  • larger loan amount and longer repayment period,

  • severely reduced number of mandatory formalities – no need to provide security or look for guarantors,

  • reduced or zero commission,

  • reduced margin and interest rate on the loan,

  • discounts on other products, for example a smaller fee for keeping an  account or an offer for attractive car leasing.

Most borrowers pay most attention to the final cost when making a financial commitment. The vast majority of banks propose loans with reduced commission and interest rates to professionals. It is also permissible to conduct additional negotiations, thanks to which it is possible to further reduce the cost of taking a loan. APRC for loans to professional services is usually from 9 to a maximum of 15 percent.

Loan for professional services – requirements for a natural person

Loan for professional services - requirements for a natural person

If a natural person who does not run his own business is applying for a liberal profession loan, he must meet a number of requirements. They are as follows:

  • presenting income statement – the statement will be sufficient when we have been using the services of a given bank for some time and has insight into our income. If this is your first time using a bank, you’ll need to provide a bank statement,

  • account statement – this requirement applies to new bank customers who have so far kept an  account at another institution,

  • income certificate – such income and employment certificate is filled in by the employer,

  • documents confirming professional qualifications and other qualifications – diplomas and licenses that will confirm that we have permission to practice a specific profession.

Persons employed under an employment contract, mandate contract or other employment relationship must have a minimum employment period of 3 months in the enterprise concerned. If it is shorter, the bank may refuse to grant us a loan for liberal professions.

Loan for liberal professions – requirements for companies

If we decide to choose a loan for a free profession for a company, then the most important requirement set by the bank is a sufficiently long time of doing business. Depending on the institution, profession and loan amount, the minimum period of running a business can be from 6 to 24 months.

In the case of applying for a loan for liberal professions while running our own business, we must also provide a set of documents. It is about:

  • income statement – such a statement will be sufficient only if the person applying for the loan already had a account in the given bank,

  • account statement – it must be presented by all persons who have previously had an account with another institution. Most banks require this statement to include data from the last six months;

  • certificates and attestations confirming qualifications to practice a given profession,

  • all relevant financial documents related to running a business – among the important documents are primarily PIT36 or PIT36L together with confirmation of submission to the tax office and a list of all costs and revenues.

Loan for liberal professions – is it profitable to take it?

Many freelancers are wondering if it pays to use dedicated loans. “Loan loan uneven” – it all depends on what are the requirements set by a particular institution . We encourage you to compare the offers from different banks first before taking any loan for professional services. For example, it may turn out that one of the banks will offer financing to us on much more favorable terms.

If a natural person who does not run his own business is applying for a loan for professional services, then the number of formalities awaiting him is practically the same as when applying for a classic cash loan. It will not be possible to obtain funds via the internet without leaving your home. We will not avoid visiting a bank branch – both when we apply as a natural person and when we have a business activity.

How do I calculate loan payments?

A rare person cannot take out a loan today. But for some, this is the only way to accommodate themselves and their families, and for others, it is a way to not deny themselves all kinds of delights, including a new car, chic shoes, or a trip while traveling.

In any case, a loan is part of our lives and it would be nice to understand how to calculate loan payments. Is it possible to do it yourself at home? Or do you have to be a specialist? 

Situation Overview

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There has been rapid growth in the past ten years, the credit market and loans to private individuals have become particularly popular. It is logical that people’s financial literacy has increased slightly. Indeed, it is true that people started saving their money and thinking about where to spend it.

I had to plan the cash flows and imagine the means from which the loans would be paid out. The secret is that the availability of credit makes you forget the sense of reality.

This means that a person always has a certain balance in stock, be it a credit card or a quick loan. In addition, the advertising promises that there is always money in your wallet for a new dress or covers for a car. The pink veil will wear off later when it’s time to settle. 

Before you decide

Before you decide

Yes, you have to choose a loan! Can you find the money for a monthly payment? And do you really need the thing you want to take money for? You need to consult with family members and of course, don’t take out the first loan you see. The offers vary in different banks and sometimes they can be beneficial for your category. For example, an acceptable percentage can be offered to retirees, students, or young families.

It is worth considering the force majeure option when there is simply no money available for a loan. A number of banks meet customers and offer debt rescheduling. Agree, trust is added when escape routes are considered.

Of course, you can calculate the loan payment in advance. Sberbank offers such an option online, for example. There is a calculator on the official website where you can register the required amount and preferred loan term.

When loosening

So how do you calculate loan payments? And why is this necessary when the bank can do everything independently? For full trust in the transparency of the services, the payment structure and the absence of hidden fees. You can do preliminary calculations at home by having a calculator, pencil, and a sheet of paper on hand.

Annuity payments

Most popular in credit practice are annuity payments. Your amount is the same for the entire term of the loan contract. Such a payment consists of two parts: funds that are used directly to pay off the loan and interest that has accrued on the amount of the debt. The amount remains unchanged until the end of the payments, but initially, the interest prevailed and in the end – the main debt. And how do you calculate loan payments of this type? There is a special formula: P = C * (% * (1 +%) x n ) / ((1 +%) x ( n -1).

In this formula, P is the payment amount, C is the loan amount. Accordingly,% – reflects the interest rate, and n – This is the accrual period in months. To correctly calculate the loan payment schedule, the annual rate can be converted into a monthly rate and then expressed in decimal numbers. There is a monthly payment.

Up to a day

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However, when creating a loan contract, the schedule is created for specific days and therefore the annual rate is converted to the daily rate, which is divided by the number of days per year. In this case, the value n increases. When calculating monthly and daily rates, the difference is small, just a few dozen dollars, but it can also carry weight. If you have the construction of tables, you can make an analogy of a bank payment up to a day.

So we can bring another concept into the conversation “Differentiated Payment”. What is it and how are loan payments of this type calculated? Therefore, a differentiated payment differs in that it decreases at the end of the loan term, with the main part being the loan debt and the remaining part being the percentage of the outstanding balance.

Back to the question of how the amount is calculated The total amount of debt should be divided by the number of credit months planned. The number received is the main payment. The calculation formula is simple – In the = S: N, where In the – is the main payment, S – the amount of the loan and N – the number of months.

However, this is not all, as you also need to learn how to calculate the monthly loan payment taking interest into account. Another value is required here – p – annual interest rate. For the final calculation, you need to multiply the loan amount by the annual installment and divide the result by 12 months.

How old can the borrower be to get a mortgage?

Each institution approaches the borrower’s age individually, thanks to which even older people can count on the loan, who provide for the repayment of the entire liability in a short time, not exceeding the maximum age set by the bank.

In the case of a cash loan or a car loan with a maximum repayment term not exceeding 10 years, the maximum age of the borrower is not significant. But what if an elderly person applies for a mortgage? Can I apply for a loan for an apartment or house if I am 50 or even 60?

Mortgage – what you need to know about it

Mortgage - what you need to know about it

The mortgage is a targeted offer that offers help in buying real estate, which will also be a collateral for the entire loan. The commitment allows you to pay between 80 and 90 percent of the value of the apartment or house, both on the secondary and development market. Due to the current law, a customer who is determined to buy an apartment with the help of financial debt must show their own contribution. If the borrower cannot cover 20 percent of the property value, it is possible to take advantage of low own contribution insurance.

The mortgage has a very long repayment period, which can reach up to 35 years. This is a great help for the future borrower, who can significantly reduce his monthly installments in this way, while increasing his creditworthiness.

Conditions for obtaining a mortgage

Conditions for obtaining a mortgage

The conditions for obtaining a loan for an apartment differ from those you may know from other services. Due to the high amount of the liability and high credit risk, the mortgage requires a number of customer verifications, as well as the provision of numerous documents, which will be confirmed, among others all terms of the contract for the purchase of a flat or Casa, Lar. The bank will require you to wait a few weeks for a credit decision, due to a thorough check of your creditworthiness and credit history.

A mortgage for a single, or maybe a loan to buy a home for a marriage? All individual conditions of the borrower will be relevant when preparing the loan offer by the bank.

However, what do you need to remember before you apply for a mortgage? The bank will require from you some basic data, including a statement of earnings, as well as information from the employer about the form of your employment and continuity of work.

It is also worth taking care of what will be included in the BIK report, which will illustrate your debt history. The bank will take into account whether all your debts have been repaid and whether the repayment has taken place regularly. Any liability that will continue to debit your account will reduce your creditworthiness.

A mortgage condition is also the payment of own contribution, as well as the use of mortgage insurance, and often also a life insurance policy. However, what will you learn more by reading about mortgage collateral?

An important condition for obtaining a credit consent is also the age of the person who submits the application for financial commitment.

How much does a mortgage cost?

How much does a mortgage cost?

Mortgage loan, thanks to accurate customer verification, as well as securing debt allows you to avoid high costs. A loan for an apartment is the cheapest financial liability available in the standard offer of banks, it is worth using it.

Do you want to know exactly the APRC of available debts? In this respect, the mortgage ranking found on our website will be great. Thanks to it, within a few minutes you will find an offer that will be attractive to you in every respect. In the ranking, apart from the interest rate, margin and total cost of credit, you will also learn about other terms of the offer, including whether the bank requires a life insurance policy and how long the repayment period foresees. This is some information that may be of great importance to you when choosing an offer. By devoting time to it, you can save up to several thousand dollars on paying off all your debt.

How to get a loan without formal employment: a list of banks

Informal engagement with decent wages today will come as no surprise to anyone. Employers are in no hurry to pay taxes, but they don’t want to lose good employees. However, informally working experts face a number of inconveniences.

First, it is impossible to take out a loan from a proven financial institution. However, it is still possible to borrow money. Where can you get a loan without formal employment? A list of banks is shown below.

What should be done?

What should be done?

In most cases, in order to borrow money, you need to present three documents: a passport of a citizen of the Russian Federation, an identification code and an income certificate.

The last document is not always required. At the same time, when a loan is issued for a small amount, the customer must provide the business phone number in the application. A loan officer can call and clarify whether an employee is employed.

Some financial institutions are still taking risks. It is possible to get a loan without formal employment and a guarantor. The list of banks that offer this service is small, but the customer has a choice.

When deciding on a deal, you should consider a number of points. First, there are higher interest rates. The financial institution is therefore reinsured. Second, you need to understand that without an income certificate, it will not be possible to receive an impressive amount.

The financial institution has a good rating and is popular with individuals

The financial institution has a good rating and is popular with individuals

It offers favorable conditions for different population groups. You can apply for a loan without employment. The list of banks that offer this service starts exactly with Good Finance.

Loans of 16.9 per year are granted to customers with official employment. But those who do not submit a profit and loss account receive an offer on less favorable terms – at 26.9% per year. At the same time, the maximum amount that can be borrowed is 200 thousand dollars. The maximum loan period is 2 years.

How do I get a loan without formal employment? A list of banks “Good Finance” does not start randomly. Customers who have previously worked with financial institutions and have concluded deposit insurance contracts can be served hereunder loyal conditions.

Where else can you get a loan without official employment?

Where else can you get a loan without official employment?

The bank list goes on to the financial institution “Good Credit”. It offers a variety of conditions for individuals. You can take the amount of up to 700 thousand dollars. The minimum rate is 13.9% per year. However, such terms are offered to customers who have submitted a full package of documents. In addition, a guarantee for amounts over 200 thousand dollars is required.

What are the conditions for those who do not have an official job? Good Credit Bank offers such customers to purchase an amount of no more than 200 thousand dollars at 19.9% ​​a year.

The maximum term is 45 months. An overpayment under such an agreement will be very high. Such a deal will benefit those who need money here and now. If you pay the debt for several months, financial losses are negligible.

Returning loan commissions: judicial practice

Loans are very common now. For one thing, it’s convenient. You don’t have to save anything on the thing you want, but you can just buy it with borrowed money. But there is a downside.

First of all, the overpayment is quite palpable due to the interest on the debt amount. In addition, many banks charge their customers hidden fees for certain services. We’ll understand in this article whether such fees are legal, as well as the ability to contest them and repay the money.

What is the loan commission?

The interest rate paid to the creditor bank Customer – these are not all the necessary costs that customers are faced with. The loan commission can be described as another expenditure item. Many of the commissions that allowed credit institutions to compensate for the low-interest rate until 2009 declared the legislation of the Russian Federation illegal. The return of loan commissions is very relevant today.

A credit commission is a payment service provided by the bank. These can be early repayment, loan service, loan payment, processing loan applications, opening and maintaining a loan account.

The commission payment can be calculated in a fixed amount or in the form of interest.

Do lenders have the right to keep it?

Do lenders have the right to keep it?

In 2009, the Supreme Court of Arbitration of the Russian Federation was ordered that the commissions that credit institutions charge for the provision of a loan are illegal. Which gives the bank’s customer, who practices the inclusion of commission payments in the contract, the right to return loan commissions. This is certainly true, but is it possible to put it into practice? We’ll understand.

Litigation

According to the decision of the Supreme Arbitration Court, a credit institution can only charge a fee for additional services that do not include measures in the form of a loan account, examining an application, granting a loan, etc.

These measures relate to the list contained in the bank’s tasks. In this way, the organization or individual can count on submitting a claim for the return of a commission for a positive decision.

List of illegal commissions

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Loan commissions can be reimbursed if they have been illegally charged.

The status of these people by the decision of the Supreme Arbitration Court has received all commissions that the credit institution has included in the loan agreement. The most popular banking requirements for commissions include loan service, settlement services, loan account management, insurance, and getting a loan.

The legislation of the Russian Federation recognizes the possible return of one of the aforementioned commissions.

To find out whether that or that often enough to carefully consider the terms and schedule for paying the loan contract. The display of commission payments is almost always visible.

Some fees may be hidden in the bank’s fees. The loan agreement may include an indication that the customer fully agrees to the costs that correspond to the bank’s interest rates. Tariffs can change constantly and the borrower is not warned. Customers are in the dark for whom they constantly pay commissions.

When is it possible to repay commissions and secure loans?

Deadline for filing a claim

The legislation of the Russian Federation has been set for the return; commission deadline for submitting an application in 3 years. If the bank commission was paid earlier, the borrower must abandon the intention to repay the amount.

If you approach the 3-year time limit, you should go to court immediately on the advice of lawyers without taking any previous complaints. Then you just waste a lot of time.

Loan Commission Returns – Procedure

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It is possible to repay the loan commission regardless of this, in addition, the loan has already been repaid or has not yet been repaid if the deadline has not yet expired. A borrower who chooses to receive the return of unlawfully assigned commission payments should do the following: Send a claim to the bank, file a complaint with the Good Finance, and then go to court.

Use at the bank

The request for sending to the bank is prepared in 2 copies. The document should reflect the essence of the problem the borrower has encountered, the request to return the commission, including a reference to the arbitration panel’s decision on the matter. This should include a reference to the initials and address of the bank’s customer.

The claim will be sent to the headquarters of the facility. One copy is for the bank, the second for the office staff. It is the day of receipt that should be monitored. It should take no more than 10 days to review the application.