Millenium Business Solution

Posts Tagged ‘loans’

Fast loans have some features that are not very beneficial to our economy, and that its annual interest payments are much higher than other types of loans such as consumer loans offered at banks or savings banks.
fast loans

The main benefit of this type of loan is that they are granted in a very short period, between 24 and 48 hours and give us the funding requested, the amount of these loans at relatively low, these requirements are minimal, simply with a copy of ID and gnomic, and it gives us credit.

These quick loans are promoted in the mass media as radio and TV, and Internet through mails or spam, or advertising on portals, basically trying to attract attention and catch people who urgently need money and through traditional methods cannot access them.

We suggest that fast loans should be a last resort that we used as funding, because their interests are very high, as well as other education expenses, to know this, we can compare the annual percentage rate of other financial products, including consumer loans offered by a bank with quick loans, the APR of these is usually 20% or more but consumer loans offered by a single box have an APR of 6 to 9%.

Because the crisis is in Spain and also the difficulties of access to credit some new types of loans are rising rapidly, this is the case of loans without collateral, they have unique features, where especially attract customers, but however, these very expensive end up paying the consequences, since they have high interest rates.

Many people who use this kind of loan is that you cannot access those offered by traditional market, where they are asked paycheck, mortgage or security goods almost impossible to present, but these loans, we can help solve an unexpected, but the future is often a real headache, because my interests are high, very short maturities.

This kind of lending almost sit on the sidelines of the regulation of credit, since in many cases the rates of interest charged and other conditions are extremely high or very demanding, many of these loans are advertised on websites, and other media traditional.

Below is an example of how serious a quick loan, for example if you request a loan of 300 Euros, the repayment period is a maximum of 30 days, and the APR would be a little more than 100% annually, if the loan is 1000 Euros, the repayment period is 60 days. The only guarantee is sought is the word. Read the rest of this entry »

Although four banks concentrate most savings and loans in the financial system, competition between institutions has increased in recent years, particularly in the segments of commercial loans and deposits, according to a study by the University of Pacific (UP.)

According to Eduardo Moron, a researcher at the UP, this dynamic reflects the income of municipal banks in Lima, but felt that the competition will tend to increase further. “They are biting (market share), but not all customers have migrated their large bank deposits to the boxes,” he said.

That would explain why the major banks have matched the offer smaller financial institutions in terms of interest offered by savings.

He stressed that, little by little, the customers of the financial system are taking a proactive stance, comparing interest rates, costs and services. “That consumer is being promoted competition, as it is ready to jump from one provider to another,” he said.

BANKING. Another segment where competition has increased according to the investigation of Moron is micro credit. In this regard, the general manager of the Association of Banks (As banc), Enrique Arroyo, said the banking of micro enterprises could grow 33% to 40%.

He said that about 400,000 micro entered the financial system over the past eight years. In turn, Scotia bank’s executive vice president, Hubert Fed felt that in this market there is enough space to enter more financial institutions.