The current situation is difficult, prices are high and money is tight. Some people will say that the truth is not far from us. When you’re glad you’ve saved some money, there’s often a freezing «spot» and you start over with an empty piggy bank. But,
and if you don’t have it?
Are you calling a friend, family or loan? In case no one is in a hurry to help you, a quick loan is still an option, and it is very good. There is no need to panic because loans are not what they used to be. It’s easier to get the financing you need now, but it’s harder to figure out how the field works. This article is for those who want to know what it means to be mature and why everyone is talking about it.
1. Loan contract: let’s better understand the loan
Anytime you have an unexpected expense, need a quick payment, or need something urgent and can’t wait for your paycheck, the light will go on and say «Hey, you can get a quick loan!» But what does it mean? It all revolves around the contract, which has a set of responsibilities for both you and the creditor (ie, the bank or non-bank financial institution that provided you with the funds). Today, technology makes it easy to apply for a loan online or from your couch over the phone, without the hassle or extra travel, but there’s one small hurdle. What do you do with what you don’t know? You are no longer faced with the omniscience of economics, the terminology in the field of finance and banking is difficult in some places, and it is difficult to understand for a person who does not have regular contact. You can ask the creditor anything you want to know through the available communication channels, but even he can’t explain everything. So here is some helpful information to help you better understand your loan.
1.1 Why sign a loan contract?
A loan contract is an act by which a creditor gives you ownership of a sum of money with the obligation to return the sum, plus interest at maturity. The loan contract is governed by the Civil Code, in whose articles its responsibility is established, that is, to the person requesting the loan, the type of loan, the conditions in which the money will be returned and the form of payment of the interests. . This act proves that the two parties involved agree on the responsibilities that accompany its conclusion, respectively the duration of the loan.
Why a contract?
Because nothing can be done without it or, more precisely, because in this way the law can intervene if you or the creditor do not respect your obligations. For this, it is important that the act complies with the legal provisions.
1.2. Ask before you sign!
As in any other contract, the loan contract must contain certain information, clear and easily understandable for the beneficiary, that is, for you. Sure, but you need to know exactly what you’re signing.
What should the contract contain and what should you pay attention to?
Well, the following is important:
💰 the type of credit for which you are applying;
💰 creditor identification data – the address of the registered office and the place of work from which the credit is requested, the email address and telephone number, the contact details and the name of the person responsible for the file, respectively their identification data – name and surname, series and number of identity cards, CNP, minimum monthly income, seniority;
💰 the period during which the loan is made – the column mentioning the due date is important here;
💰 the total amount of the loan because the amount you borrow is not the same as what you will pay in the end;
💰 fixed or variable interest – you need to know if it is one or the other, how it is applied and how it is calculated;
💰 the exact value of the payments and the periodicity of the payments – it must be informed in how many installments, how, when and how much you are paying;
💰 interest in case of late payment – as in other situations we don’t see you well if you’re late, here you won’t be forgiven either. In the event of late payment of installments, late payment interest may be applied. Your calculation method must be mentioned in the contract;
💰 advance payment (before the deadline) to which you are entitled regardless of the type of credit chosen and that must appear in the contract, is the payment of an amount of the credit balance in advance, at any time, before the final expiration date. If you get rich along the way, you can get rid of the payment faster, the contract says;
💰 right to withdraw – you should know when you can withdraw and under what conditions;
💰 termination of the contract – you should also know when, how and under what conditions it is possible to terminate the contract.
Also keep in mind that the clause that the financial institution can declare an early maturity in the case of clients who have not fulfilled their contractual obligations with other creditors is prohibited. Depending on the type of loan chosen, there are other provisions of this type, but you will find out about them through the lender, when submitting the loan application.
1.3 Fast and responsible loans
While it’s easier than ever to get a loan on your account, take a hard look at the situation, from all angles, to see if you really need it or can wait. Sometimes impulsive decisions cost money, so:
✔ There is no longer any delay in applying for a loan in special circumstances;
✔ Pay attention to the repayment terms of the amount you want to borrow, and what is mentioned in the «General Conditions» to avoid any inconvenience in the future;
✔ Calculate the amount based on your regular income and expenses so you don’t have to give up what your life depends on just to pay the installments;
✔ Do not borrow money without a stable income, the due date, of course, will become your nightmare.
2. Expiration Date – What does expiration date mean and how can it help or confuse you?
We’ve talked about credit and what it means, what to find in a contract to keep everything in order, and you’ll notice that in the vast majority of contracts, clauses are summed up as clauses. When you apply for a loan from a bank or non-bank financial institution, you are responsible for repaying the borrowed amount on time by a certain date. By mutual agreement, the date specified in the contract is called the deadline date. This is the same due date as a regular invoice, the agreed time frame within which you can pay any outstanding payments.
Any action after this date will give rise to penalties for late payment, depending on what was previously stipulated in the contract. Although IFN gives you a loan faster, sometimes even without supporting documents, that doesn’t mean you’re immune from late payment penalties. Banks and non-bank entities that grant loans begin to charge default interest immediately after the due date. Initially, we will contact you up to two weeks after the due date to notify you of late payments and to contact credit bureaus if more than 30 days have passed since you failed to meet your contractual obligations without receiving your refund. money.
You generally have 90 days to pay the outstanding amount without being sued. After those 90 days, they will end up suing you, which is not recommended. You can’t stop time, so the expiration date won’t come back and you won’t have to wait 90 days. If you are temporarily unable to pay your debts, the easiest and safest solution is to contact the financial institution that gave you the loan and request an extension or rescheduling.
For situations that cannot be resolved urgently, for bold projects without financing, or even for situations where funds are blocked, Quick Loan is by no means a cure for the symptoms, but it is not the root cause either. Loans can help you, but they can also confuse you!