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Installment loan: your non-binding offer and remain free at the same time

by admin

This is how credit works today

This is how credit works today

Do you want to make dreams and wishes come true, replace the expensive old loan with a cheap online loan from the Internet with a debt rescheduling, and remain free at the same time - in addition to the repayment term? The classic installment loan from Best Bank is your ideal companion.

Realize wishes online as a customer

Realize wishes online as a customer

You need money with a cheap installment loan for many things in life and one or the other financial situation: whether new home furnishings, extra budget for your vacation or a second car. You can finance all of this safely and cheaply with a classic installment loan. As a bank, we offer you the desired loan amount up to $ 100,000, individual loan terms from 24 to 120 months and a fixed monthly rate at the annual percentage rate.

Such an installment payment gives you even more financial freedom at low interest and high security at the same time. And with a quick installment loan, you have your money in your account within a few days - at the best effective interest rate, the best conditions and a low rate. Take advantage of our decades of experience as a bank and provider of the best online loans.

Debt restructuring - replace an expensive loan with a new installment loan

Even more: A low effective annual interest rate on the installment loan with a flexible term is ideally suited to replace existing, expensive financing with higher interest rates and thus save money - this of course also applies to mortgage lending. Low interest rates, low rates and no fees bring significant cost advantages over the months and years. You can quickly find out how high these are from bank to bank by means of an installment loan comparison. And: With every unscheduled repayment, you as a borrower can save additional money on the installment loan. For debt rescheduling, Best as a new provider requires a transfer authorization from your bank and the exact information for your current installment loan.

Now immediately - enjoy installment credit online with instant approval

Direct banks today not only offer the best deals when it comes to investment or funds. Online loans, such as the Best Bank credit, are always cheaper than offers in the branch bank - good credit and Credit bureau required. This is partly due to the significantly lower interest rate, but also due to the comparatively low costs. There are no transaction or processing fees, and payment and account management are free of charge. This reduces the effective interest rate for every sum - whether car loan, personal or instant loan.

Modern loans - stay flexible when repaying

Modern loans - stay flexible when repaying

Modern, cheap online loans at top interest rates always offer you, the customer, the option to repay a flexible amount in addition to the monthly installment and thus save even more. Through free special repayments during the term or with an early repayment of the entire installment loan. This shortens the term, saves interest and money, and helps you to obtain significantly cheaper financing.

It's worth it - a loan installment comparison at the bank

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Even if you use an online loan to finance yourself cheaper online: It is always worthwhile to make a precise loan comparison before taking out a new loan or when rescheduling with a cheap loan offer. Compare the interest rates and conditions of the different providers in the loan calculator as closely as possible.

With our online calculator, this only takes a few seconds. Set the desired amount and preferred term, and you will already be shown how high the expected rate, bound interest rate, effective annual interest rate and the total cost of the loan are. With this query you immediately have a first clue for your further installment loan comparison. Finding cheap installment loans thanks to simple and quick loan comparison - just one reason for your inquiry at Best.

Best Bank credit - the quickest line to your personal personal loan

As a borrower, you can get your suitable loan from the Best Bank quickly, securely and cheaply - with a preliminary immediate approval from the experienced provider. As a direct bank, we do not maintain an expensive branch network and pass on the cost advantages directly to you as a customer. Best Bank has over 60 years of experience in direct installment loans.

In addition to low interest rates, Best Bank offers you the best bankers-tested service with the most modern and safest online procedures - from application to transfer: Many satisfied customers rightly apply for their online loans from the trustworthy bank every day. This is also proven by the current Best Bank test.

Study costs – student loan | Comparisons & information

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Needs money for rental costs

Needs money for rental costs

When deciding to study, many new students choose a new hometown. But if you leave your home country, you have to deal with the issue of rental costs. How much rent you actually pay depends primarily on the city you choose. But hardly any student decides solely on the basis of the square meter price, and the attractiveness and quality of the teaching are also decisive for the choice. It is therefore hardly surprising that Munich has been number 1 in Germany's most popular study cities for years. At the Ludwig Maximilians University (LMU) alone, around 51,000 students from all over the world studied in the 2017/2018 winter semester.

If you decide to study in the Bavarian capital, you have to dig deeper into your pocket. Because the living space is not only very popular, but also scarce and accordingly expensive. The same applies to Hamburg, Frankfurt or Cologne, which are also among the most popular German study cities. However, Stuttgart has recently replaced Munich as the city with the most expensive rents in Germany. So that you can plan your finances in the best possible way, we recommend that you take a look at the rent index of your new home. It is a little cheaper to live in and around the Ruhr area. Leipzig and Dresden in particular are very popular among aspiring academics due to the unbeatable rental prices. But smaller cities such as the bicycle city of Münster, Bochum or Aachen are also among the students' favorites.

How much money you actually have to plan for renting your new student apartment or your new flat share is difficult to say due to the large differences between the individual cities. If you choose one of the more expensive cities, we recommend that you choose a room in a shared apartment or even one of the student dormitories. But please keep in mind that affordable housing is very popular among students. In Munich you therefore have to plan up to four semesters of waiting for a place in the dormitory.

Cost of living for students

Cost of living for students

The cost of living for students in Germany varies greatly depending on the city. For example, rents in the capital Berlin have risen sharply in recent years. According to the 21st Social Survey of the Deutsches Studentenwerk, rents rose from an average of $ 317 per month in 2012 to $ 372 in 2016. Berlin thus ranks 5th behind Munich, Cologne, Frankfurt and Hamburg in a city comparison. In 2016, students in Berlin had an average income of $ 1,015. This means that the increase in income (approx. 13%) cannot quite keep up with the increase in rent (approx. 17%) (comparative years 2016/2012). In contrast, things were more balanced in Hamburg. Here, the increase in income was almost 9% compared to a rent increase of just over 8%.

Popular student strongholds are expensive

Munich, on the other hand, is - not only for students - an expensive city when it comes to the cost of living. The rental prices in particular are very high here. With an average of $ 378, students don't pay as much more rent than in Berlin, but especially in recent years, rental prices have skyrocketed, so someone who is moving to Munich should expect to pay around $ 500.

Hamburg is also one of the more expensive cities in Germany. As a student, you have to expect to pay an average of $ 373 in rent. And the cost of living should not be underestimated either.

Lower living costs in the new federal states

If you want to save on rent, you should consider studying in the new federal states. In Leipzig, for example, as a student you only pay an average rent of $ 264. The costs for food, leisure time and the like are also a lot lower in Leipzig than for example in Munich or Hamburg. As a student, you only have to expect average expenses of $ 319 (excluding rent and car). And what about student living costs in a typical student city like Tübingen?

Here, students have an average income of $ 832 (2012) and can expect to spend $ 759. The average rent is $ 323, the diet $ 162 and for leisure activities, students from Tübingen spend an average of $ 61 per month (source: 20th Social Survey of the Studentenwerk, published 2014).

All in all, there are very strong differences between the individual student cities in Germany in terms of study costs. Especially when it comes to living costs and especially rent, you can make huge savings if you are flexible about where you study. However, course costs should of course not be the only decisive factor when it comes to where you want to study.

How much money does a student need?

How much money does a student need?

In 2016, the “typical student” needed an average of $ 819 a month to finance his studies. Most students are in a range between $ 600 and $ 1,000 living costs per month. Most of this amount (approx. 51%) continues to be contributed by the parents, followed by their own earnings (approx. 26%) from activities during their studies. The parents' high share of funding raises a number of socio-political questions that German state funding funding cannot answer conclusively. Only about 12% of all university students receive German state funding funding. Fell by 5 percentage points or 30% in 2012.

Income & expenses as a student

Income & expenses as a student

This means that only around 10% of all students receive the maximum German state funding amount. German state funding therefore remains a gap funding for a few, based on the socio-political aspect of a student's “need”. So most students only have the opportunity to earn some extra money in addition to their studies. The problem with this is that the curricula of most universities have become even more compact due to the changeover to the Bachelor and Master systems.

A student from the Ländle recently showed me the tasks of the mathematics lecture for the (old) diploma course and the new bachelor’s course. They were absolutely the same, only that one semester had three semesters and now only two. Now we do not want to say that a concentration of knowledge and an increase in requirements would not be possible or even sensible - only one thing is certain: If the framework conditions at the universities change so significantly, this will also have consequences for the framework conditions of the academic environment.

less time for studying and part-time jobs

less time for studying and part-time jobs

Today, students mostly have less time than before. And therefore less time to finance your studies through part-time jobs. The financial situation is exacerbated if you want to deviate somewhat from the standard course, for example by gaining experience abroad through internships or semesters abroad. A year abroad, however, easily costs $ 10,000 or more: tuition fees at foreign universities, travel expenses and increased living expenses add up. In addition, it is often necessary to complete valuable internships that promote the course of the study - but are paid poorly or not at all. This situation has two dangers:

  • The often non-specialist activities in part-time jobs eat up almost a fifth of the total weekly time budget of the students. Due to the need for part-time work, the course can be much slower than if there were no "financial gap". Or else: Since the learning material has to be internalized in the remaining time, it can only be processed superficially - the grade point then drops. In the worst case, the course is stopped altogether because the different time requirements (learning and working) cannot be permanently reconciled.

  • The alternative to this is that the financial burden on the parents from studying continues to increase. The financial share of parents, which is already very high today, cannot be increased arbitrarily - especially not if the qualification of broad sections is to be considered a social goal - and not only the children of wealthy parents should be able to study.

the need for private forms of student finance

the need for private forms of student finance

The study finance gives the students both the necessary time and the internal independence from their parents' home. Student funding gives everyone the chance to face the challenges of studying without financial worries. The most important forms of student finance are discussed below. A distinction is made between state-funded funding commitments, student finance based on classic loans and newer forms, the so-called education funds.

4 precautions when taking a loan

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We have already talked about when it is worth taking out a loan and today we are going to talk about another very important thing: how. Knowing how to avoid getting into future trouble and help you choose the best loan for you. So, let's go!

Take care of your credit score


This is for every moment, even if you don't need a loan, okay? It is the note you have in the market as a payer. The more certain you pay your bills, the higher your score and the better the loan terms are for you. Think of a colleague who borrows money. If you know that he pays everything on time and doesn't let anyone down, you imagine that you are not at much risk of being defaulted on, right?

Banks and finance companies think the same way and tend to give lower rates to this type of person. As for that coiled friend of yours who lives going into debt all the time, you will think twice before lending, right? Well, banks and finance companies too, and because they are more at risk of not receiving, they tend to increase the interest rate and make this person's life difficult. That is, do everything possible to keep your credit score in good shape.
Want to know everything about credit score? Click here.

 

Position yourself as a customer

money cash


I know that we use the expression “borrow” and already feel like the bank or finance company is doing us a favor. They are not. So, nothing to be ashamed of or shaking all over for borrowing. When you take out a loan with someone, you pay for that service. So, you are consuming a product like any other. That is, companies want more is that you take the product with them. Use it in your favor! You don't need to be ashamed, bow your head or accept any proposal because you need it. Believe me: the manager in front of you is also needing to sell this product.

 

Keep an eye on CET


In the financial world, this acronym stands for C usto And fetivo otal T and is the sum of all fees, taxes, fees and insurance will be charged on the purchase of a financial product and, generally, are well escondidinhas in the fine print of the contract. In the case of the loan, some fees that may appear are: interest rate, credit analysis fee, registration opening fee, other administrative fees and the financial transaction tax (IOF). But, calm down, if you know the value of the CET you don't even have to calculate and add one by one! To know the amount is very easy, it is mandatorily written in the loan agreement. Is it hard to find? Ask the manager to show you. That way, you won't be caught off guard when payment slips start to arrive.

Calculate the value of the installments

money cash


Sometimes, we look at the rates and think: It looks small. Let's sign a contract? But, they will not always result in installments that fit your budget. Before closing a loan, go there in your planning, put all your expenses fixed and decrease how much you usually receive.

This way, you can see exactly how much you can pay per month without getting yourself into debt. Knowing this amount, compare the portions of the simulations you made with payment for the same period of time. The ideal is to oppose offers from about three different places so that you have a good sample of your possibilities. Then yes, choose the option that works best for you. ?

Keep these tips with care and use all of them to rock the time to get a loan, combined?

Credit with car as security.

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Few consumers can pay for a car in cash. In almost all cases, a car loan is due as collateral. The car loan is one of the most approved loans in Germany. The loan with a car as security is then secured with the Kfz letter. For this reason, banks provide cheap auto loans. Financing at the dealer should also be checked.

The outlook

The outlook

Most of the cars sold in Germany are financed. The branch banks, the dealer banks and also online banks offer this financing, sometimes with the very best conditions. In the case of a loan with a car as security, the bank has the security of the car requested and the deposit of the vehicle letter. Today, the Kfz letter is named Part II of the registration certificate. The Kfz letter provides information about who owns the car, and the car may not be sold during the credit period; the bank is then the owner of the car.

The car loan as collateral is then a dedicated loan. But the auto bank can also offer the best conditions, whereby it can be said that a loan for a car has better conditions than a conventional loan. The lower the bank assesses credit risk, the better the interest rate will be.

The decision to finance the car through the car bank is often rewarded with very low interest rates. There are various forms of financing at the auto bank. There is the financing with the final installment financing, the three-way financing and the classic financing as installment loan. The advantage of a loan with final installment financing is that only very low installments are paid during the term; at the end of the term there is the final installment, which is then often paid with another loan.

This financing can be advantageous if the car buyer expects a larger sum after or during the loan term, which would pay the final installment in full. Life insurance can often be taken out during the term of the loan, as is also the case with civil servant loans. The customer then pays the insurance premiums at the low rates. After the term has expired, the insurance and then cover the complete final installment. To what extent this pays off for the customer has to decide.

The same scenario arises with three-way financing, only a down payment is made here and at the end of the term there is also the final installment. If the customer opts for so-called balloon financing, he pays his installments and at the end the final installment, but the car remains the property of the buyer. However, many customers cannot pay the final financing with high installments. Then there would be the possibility to return the car. The final installment would then be paid and the customer could buy another car.

The conditions

The conditions

If the customer would prefer to take out a special-rate installment loan from his house bank or a direct bank, he has the advantage that he could act as a cash payer at the retailer. It would not only be the discounts or price reductions that he could get out with a cash payment, but he could also look for a model of his choice and would not be bound by the dealer's offers. In contrast to the normal installment loan, an earmarked installment loan could have an interest rate of up to 4% lower. However, the motor vehicle letter usually has to be deposited, and some banks are also satisfied with the assignment as security.

The customer should also agree to the deposit of the vehicle letter, otherwise the bank could refuse the loan by car as collateral, especially if no other collateral can be mentioned. The bank is therefore safe, because if there is a loan default, the bank can sell the car as collateral. However, only if the car has so much value that it covers the loan amount.

For example, there is no credit with a car as security if the customer buys a used car that does not represent a high value compared to the loan amount. It is not wrong to secure the credit against unemployment or disability with a residual debt insurance. However, it is important to take a close look here, because these insurance companies have pitfalls with which they can avoid payment in the event of damage.

For example, unemployment is only paid if the insurance runs for a certain period of time and some illnesses are excluded in the case of disability. Ultimately, whether a residual debt insurance pays off depends on the customer's economic situation.

The possibilities

The possibilities

The car buyer can therefore take out a normal installment loan or an on-demand loan from a bank. These are not earmarked and are freely available. The advantage, the Kfz letter stays with the customer and the car belongs to him, he can also sell it when he wants. Often, however, other collateral is required for large amounts of credit.

The call credit, actually not a well-known form of credit, offers the customer a car loan as security that has no fixed term and thus guarantees flexible repayments. The call credit, like the overdraft facility, is only cheaper and is credited to an account by the banks after application. The maximum amount is 25,000 USD that customers can freely dispose of. The repayment makes up 2% of the loan amount used.

A credit comparison can also be used for the call credit. If a cheap bank is found, the loan application can also be made directly here. Of course, the creditworthiness must be impeccable as well as the Credit Bureau not debited.

The special repayments are very important, especially for loans with cars as collateral. The financial situation of the customer can always change positively during the term of the loan and the loan could be redeemed prematurely or at least partially. There will be no prepayment penalty if special repayments have been noted.

There are also one or two installments deferred. There is always a financial bottleneck that could be bridged with one or two installments.

The bad Credit Bureau

The bad Schufa

Of course, the creditworthiness of the customer is extensively checked on a loan. If negative entries are noted in the Credit Bureau, a loan could be refused. If it is absolutely necessary to have a car, the Credit Bureau-free loans could be considered. However, these loans are limited in amount. There are loans up to a maximum of 7,500 USD, whereby this loan must have an impeccable credit rating, namely a high income.

 

4 Advantages of the Loan Repayment System

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Always, after confirming the financing proposal and knowing that the credit has been approved, the interested party will receive the contract with all the details of the transaction.

At this point, there is a specific system that is directly related to the way the benefits will be defined. Known as repayment of loans, it is a way for the institution to define the payment of installments.

Next, you'll learn a little more about how this system works. Understand!

What is loan repayment?

cash

As a rule, amortizing is the act of paying off the debt in parts, that is, it is that amount, without additional costs or interest, that we pay to settle what the institution has lent.

However, when we make a loan, in addition to the amount of debt, there are other expenses that make up the total monthly fees. So we still have to rely on this division of the collection of financing:

  • main total value: it is the final amount of the installment, that is, it is the amortization plus costs, such as TAC (credit opening fee), IOF (tax on financial transactions), notary fees, interest, etc;
  • interest: the percentage amount charged by the creditor to carry out the concession;
  • debit balance is the sum of all installments, that is, the total of the operation.

What is the difference between amortization and refinancing?

money

Unlike amortization, where the installment can only be paid in cash, refinancing already offers more payment possibilities. In that circumstance, it is possible to apply for credit using an asset as collateral.

In the market, it is possible to find cases of refinancing that accept from real estate to vehicles. In this type of modality, the property remains in the name of the financial institution until the debt is paid. As the bank has this guarantee, it is common for interest rates to be lower, the term length and the amount released to be much higher.

Interest rates

The fees for this modality are divided into two:

  • pre-fixed: this is a defined rate when the contract is closed. Its main feature is that it does not vary according to the time, so the customer knows how much he will play in the beginning;
  • post-fixed: this usually tends to undergo monetary correction of market indices. In this case, the reference rate, IPCA or IGP-M may be responsible for determining its value.

Its peculiarity lies in the fact that its calculation always occurs at the close of the previous month. Thus, the installments change their amount periodically and there is no way of knowing what the interest will be.

What is Table Price and SAC?

cash

In Brazil, it is customary to amortize loans and financing in two ways. One is the SAC (Constant Amortization System), and the other is the Price Table. Both have a common principle: reduction of the balance.

Thus, the debt is calculated up to the date of its amortization. After payment of the installment, the calculation is redone with interest on the remaining amount. That way, the charge always gets lower. However, despite this similarity, there are still some specific characteristics of each type. We will understand in more detail!

SAC

The Constant Amortization System is normally used to finance real estate. Therefore, the amortization is fixed, that is, the same amount is discounted every month - of course, except for the monetary correction that changes each month.

However, interest rates decrease over time and the final amount of installments is adjusted. In this way, the consumer pays more at the beginning and less at the end of the loan.

Take this opportunity!

Table Price

Here, the installments do not vary as in SAC and all installments have the same value. What changes are amortization and interest? Thus, at Price, the amortized amount increases while interest decreases, but this does not affect the total value of the installment. This type of modality is more used in purchases of appliances and vehicles.

What are the benefits of loan repayment?

cash

As the two types of amortization have different characteristics, it is important to think carefully which is the most advantageous for your situation. We will present the advantages and risks of each one. Understand!

1. Fixed amount

In the case of the Price Table, it has a fixed amount that can be paid monthly, since the only thing that changes is the interest and the amount of the amortization.

2. Without Market Influence

Here, Price again has an advantage, since it does not suffer from the fluctuations in economic indices. That is, its rate is post-fixed.

3. Longer deadlines

The Price Table is a type of amortization that offers longer terms, because as its installment is fixed, different from SAC, the consumer does not pay the highest amount at the beginning, obtaining more time to pay the installments.

4. Speed ​​to pay off debt

This is one of the exclusive advantages of SAC, the big point here is that, as it decreases over time, the interested party already faces the worst part of the debt in the first months. So, with less time than the Price Table, he manages to repay the loan.

What are the amortization risks?

Greater uncertainty of payment compliance

Here, we are only talking about the Price Table. The consumer, having more time available, runs the risk of not having enough money to pay it off until the final period.

Periodic fluctuations of the parcel

This is a disadvantage of SAC, although it is faster, there is still the problem of variations that both amortization and interest suffer since it is influenced by the market.

How to choose the right system?

money

The principle for choosing which is best is to analyze what will harm your pocket least. Then, you must evaluate how long you intend to pay off this debt and if you are sure you will be able to pay during that period.

For example, as we highlighted in the previous topic, SAC has the characteristic of charging more at the beginning, but decreasing over time. Thus, it is more recommended for those who believe that they will have an increase in income, or for those who already have a large amount and are not sure if they will have the same conditions over time.

Now, in the case of Price, because it is more fixed and increases over time, it fits better for those who have a more solid financial situation and know that they will be able to afford this expense even for a long term - since the installments are smaller and interest rates that are high.

Well, we hope that with all this information, you have been able to understand how the loan repayment system works. Need to get financing? Don't know who to turn to? Contact us. We have specific conditions for each situation and we still provide financing using an asset as collateral. Check out!

Cheap credit cards don’t exist

by admin

Cheap credit cards:

Cheap credit cards:

As easy as it can be, credit cards are never cheap. You often pay the top prize for the plastic money and this convenience.

First of all, let's distinguish between a loyalty card and a credit card. Many consumers confuse this, because with a customer card you can often buy goods on credit. However, these loyalty cards are not issued directly by a bank. A credit card is, these are issued by banks and credit card organizations such as American Express, VISA or Mastercard.

Although credit cards were already invented in 1950, cheap credit cards are still to come.

The costs of a credit card are considerable and start with the annual costs. They start from a few tens to more than 100 USD per year. They are also happy to offer you an extra credit card, ideal for your partner, but you will also have to pay annual costs for this.

The convenience of your credit card is the big danger, before you know it you have reached your limit. Perhaps more than you wanted or could spend that month. The issuer of your credit card will charge you a hefty interest, even if you can pay your expenses immediately the month after.

It becomes even more expensive if you have to repay the expenses of that particular month in installments. Even though the maximum is at 16% interest, this is still many times more than with a revolving credit or personal loan.

For example, Across Lender's credit card made the news in 2007. The supermarket that is classified as cheap issued a credit card. Easy way of customer loyalty and to earn something extra. Something extra? The interest charged by Across Lender on credit card payments was between 15% and 17%!

Of course, credit cards also have advantages, sometimes the first year is free or free credit cards for your partner and with some credit card companies all purchases are insured as standard. However an insurance for which you pay 16% interest is a very expensive insurance!

You want a credit card, right?

You want a credit card, right?

Fine but take the following tips with you so that you do not pay too much and can enjoy all the conveniences that a credit card offers:

  • Where can you pay with your credit card?
    Take a good look at exactly where you can pay with your credit card. Using your credit card abroad? Some Dutch credit cards can only be used in the Netherlands. The most accepted credit card is VISA's credit card.

  • What extra services do you really need?
    A credit card with free access to the lounge at the airport, unnecessary luxury or badly needed on your business trip? Your luggage insured up to 10,000 USD while you only take the essentials with you? A helpline that is available 24 hours a day while you are already well insured?

    The credit card companies would like to spoil you and make the card exclusive. Interesting, but you pay a lot for this. Take a good look at what you need, an extra payment method for unforeseen situations or a pass that gives you a lot of privileges that you will use sporadically or never?

  • What does the credit card cost?
    View the annual costs of your credit card. They may offer you a free credit card for the 1st year and then pay the top prize. In addition, you must compare credit cards based on the interest you will pay for each payment.

  • Use your credit card only where necessary!
    Do they also accept your regular debit card? Then leave your credit card in your wallet and think about what you will save because you do not borrow the money temporarily but pay directly from your current account.

Student credit: how to get it?

by admin

 

 

Tuition, accommodation, daily life, IT equipment ... Being a student is expensive! To finance your studies without having to work like a madman, there is a solution: the student loan. How to get it from banks? Our advices.

What is a student loan?

What is a student loan?

The student loan is a consumer credit that is granted to finance your studies. His particuliarity? It is a credit with deferred reimbursement: the student begins to reimburse at the end of his studies. Another advantage of student credit: a reduced interest rate compared to a conventional consumer credit.

The amount of the loan can vary according to the banks, according to your income and that of your surety. The amount of your loan can vary from 1,000 to 45,000 $ for a repayment period spanning 2 to 10 years on average. While knowing that 2 years represent the legal minimum duration for this type of loan.

What conditions to obtain a student loan?

What conditions to obtain a student loan?

While many banking institutions currently offer student loans, the conditions for obtaining them are generally the same:

  • to be of age ;
  • be enrolled in an institution preparing for a higher education diploma;
  • be under the age of 28 - sometimes 30 in some banks - on the date the loan is made.

To obtain this personal loan, it is often necessary to have a surety, that of the parents for example. If it is not the case, it is possible in certain banks to make guarantee its credit by the State for a maximum of 15 000 $. In the event of default by the borrower, the State will therefore be responsible for paying the monthly payments of the loan, through the intermediary of the public investment bank.

How to find the best student loan offer?

How to find the best student loan offer?

From one financial institution to another, the conditions of a student loan can vary considerably. In particular in terms of rate, PRA (prepayment penalties), maximum duration, maximum amount and handling fees. To find the best student credit, do not hesitate to compare the offers:

  • First point to check: the APR or annual effective annual rate. Expressed as a percentage, it allows you to assess the total cost of a personal loan (the higher the better). The APR is freely set by the bank. For a student loan, it generally hovers around 1%.
  • Another point to study, the repayment terms. Duration of repayment, adjustable monthly payments, penalties (PRA) applied or not in the event of early repayment, you must ensure that the offer is the most compatible with its repayment capacities.

One last tip: some schools or universities have agreements with banks. They allow you to benefit from a student loan at preferential rate. Students can also take advantage of lower rates at a financial institution whose parents are clients. Ask your bank, you never know!

Tip: don't delay!
You should also be aware that, conversely, a student loan file could potentially be refused by a bank if the applicant is outside of it. It all depends on his goodwill. The bank can also limit the annual quota of government guaranteed student loans. It is therefore best to approach banks and financial institutions as soon as possible.

Is the full amount of a student loan paid right away?

Is the full amount of a student loan paid right away?

In fact, students have a choice. By opting for a progressive payment of his student loan (a certain annual amount), the borrower reduces the cost of interest, but also the cost of insurance.

As with any consumer loan, borrower insurance is optional here. But in reality, the granting of a student loan is very often conditioned by the purchase of insurance. If the financial institution granting the loan can offer an insurance offer, students remain free to insure their loan elsewhere. So don't hesitate to compare insurance!