Money Wise Blog

Existing calculators are focused basically on annuity loan repayment scheme. Finally, it is more costly for the client; however it allows allocating in regular intervals monetary loading during all period of crediting. It is not excluded that the bank provides also other procedure of mutual accounting differentiated at which essentially change both structure, and the sums of payments. In this case results of initial computations can be farther from actual values.

At use of annuity schemes of loan repayment payment represents the constant sum which the borrower pays every month to bank. It develops two constituting – returnings of the basic debt and the added percent. However there is one nuance: many banks don’t demand from the borrower repayment of the basic debt under the credit in the first credit month, and it is content only with interest payment on it, motivating with that create thus the certain adaptable period promoting accustoming of the client to additional financial burden. But this bank care has also an underside. Such displacement of accents finally results though to insignificant, but to increase of expenses of the borrower. How it concerns credit calculators? The matter is that the various financial formulas allowing banks to use the algorithms most favorable for calculations can be put in a basis of their computations.

As a rule, available calculators allow to calculate only the limited list of credit proposals of bank. The greatest distribution has received mortgage and car calculators. In it there is a certain inconvenience for clients as other kinds of loans remain “behind a bracket”, but, on the other hand, availability of service of estimation is indirect confirmation of a consumer demand of certain kinds of banking services. Hence, in certain degree it allows to judge popularity of those or other credit programs for clients that facilitate their choice.

In summary it would be desirable to note the following: it is precipitate to consider credit calculators as the unique panacea that allows making a correct choice. It only the first step, and it is far not essential, but difficult way of judgement of own expenses on a credit capture.

Anticipating possible reaction of valorous defenders of official authority and their appeals of type “you do not want – don’t use”, I suggest to calm down in advance and to dream up a little. Imagine that you live in the unreal world. Go to shop where guiding prices are specified, and valid learn only after have punched on cash desk the goods which isn’t subject to return. Buy phone persistently connecting you with other subscriber, or use the computer which almost works, i.e. like would write and calculates, but only with small errors. Whether you will be satisfied by similar service of the trading organizations, manufacturers of the equipment or operators of mobile communication? I think that it is not so.

Can you remember those good times when anybody could take a credit if one needed funds? And just imagine the condition of those who have to carry that burden nowadays when the world economy is facing tough times. And for those people having credits the issue of credit monitoring is as crucial now as never before. It is not only about loan monitoring, this also helps save money, time, and nerves and be fast in solving loan related problems. Those who are looking for a spot where to find out about credit monitoring, are welcomed to go to this credit report monitoring site – there is much information about credit monitoring and how to order the service.

Also we shouldn’t forget about possibilities given to us by modern technologies. The Internet network gives a really unique chance to learn what we need or to obtain anything at the best price on the market.

In general, all that is connected with credit calculators causes many questions. The sensation is created that they basically don’t allow the borrower to solve the primary goal – with high degree of reliability to count the credit and to make it in advance, that is till the moment of the conclusion of the loan agreement. Certainly, there are also objective reasons which should be considered. The decision on credit issue is very individual. Any bank independently estimates the risks and benefits, quality of the borrower and etc. Therefore conditions of issue of a loan can be various.

In this connection it turns out that to the statement bank of the credit request it is impossible to tell precisely what sum and for what terms it will be given and also since what moment of time the credit will settle payments.

It is also not clear size of the credit rate (percent) which can be changed depending on the maintenance of the primary documents received from the borrower. However the small note. In the examples resulted in the previous articles anything from listed above also it was not considered. How then it is possible to explain existing discrepancies in computations? Or, maybe, in general real mission of credit calculators is in something else and consequently it essentially differs from the declared? Having had a talk on the given theme with some borrowers familiar to me, I will express practically their consolidated opinion. They consider that credit establishments simply wouldn’t like to open in advance all information at cost of credit resources, as though to whom of it was wished. Such is the style of their work. These are their “small” cunnings. Possibly, to it can be added “pleasant unexpectedness” in the course of the conclusion of credit contracts which arise at clients at their dialogue with credit inspectors of banks.

So what should the future borrower know at use of the credit calculator? The first: Credit calculators literally in banks are especially individual matter and should be considered differently. At similarity of initial parameters of calculation they can yield various results of computations. It is almost impossible to specify what of the received results are closest to a real picture of payments under the credit. Owing to it, bank credit programs attractive at first sight but finally those and con not appear.

Another second matter: Accompanying expenses of the client under the credit maintenance don’t allow considering the majority of calculators, that is the every possible commissions, insurance installments, additional payments and etc. They simply for this purpose aren’t adjusted. This circumstance also doesn’t allow considering the offered bank instrument as a basis for decision making for choice the credit program as it is not excluded what exactly these collections can lead to essential rise in price of the involved money resources.

Do you still remember those good times when practically anybody could take a loan if one required money? And just imagine the situation of those who must bear that load nowadays when the economy is facing hard times. And for those people having credits the issue of credit monitoring is as urgent now as never before. It is not only about loan monitoring, this also allows to save money, time, and nerves and be fast in solving loan related issues. Those who are looking for a spot where to find out about credit report, are welcomed to check out this credit report monitoring site – there is lots of information about credit monitoring and how to order that service.

Also we haven’t forget about possibilities provided to us by modern technologies. The Web network gives a really unique chance to find what we need or to get anything at the best price on the market.

So let’s use the credit calculator of one bank from first ten. For this purpose we will fill required fields, having substituted in it corresponding values of parameters. As a result it is received: monthly payment of the borrower constitutes $293,32. Hence, leaves that the capture at bank of the loan at a rate of $9 thousand will manage to the creditor in $293,32?36 = $10 560 (in the absence of advanced repayment).

Let’s repeat computations, having used service already other domestic bank, we take it from second ten rating. We will make necessary substitutions and … the calculator gives out us absolutely other result. In this “opinion”, the size of monthly payment at the set parameters equals $286. From this it follows that the total sum of expenses under the credit maintenance constitutes $10 296 that on $264 it is less, than has been specified above.

Similar results turn out and at use of credit calculators of any third bank. It is not clearly, agree. Here only calculators for some reason give out excellent from each other figures.

What conclusions will be made by the borrower on the basis of such computations? He will choose there where it is more cheaply, as to check up reliability of the produced calculations all the same is problematic. Though and it is possible. For this purpose it is possible to go two ways: or to use the standard formula of determination of the size of monthly payment, or to produce necessary computations on the basis of application of non-bank calculators. We will try and make. Perhaps, it will bring though any clearness.

For independent computations we will substitute the necessary values in the calculation formula of annuity payments. By simple simplifications it is received: monthly payment is equal to $293,32, that is exactly, as at the first bank taken for an example.

Now we will consider the following variant which we name objective (well at least rather). For this purpose we will use, say, the credit calculator from the neighboring country, placed on one of the Internet sites. Results don’t keep itself waiting for long: the monthly repayment sum of the credit on the above described conditions of $286,2, a total sum of payments under the credit for 36 months constitutes $10 303,11, and the interest rate sum constitutes $1303,11. As we see, these figures are very similar to some, specified earlier, but from the point of view of arithmetics all the same they differ.

Thus, leaves, as these computations haven’t allowed answering a main point – what of these calculations are correct? It is only a real rebus. With credit calculators of banks all is more difficult and more interesting. Why? The answer as it seems to me, is obvious – as it is all about money gaining.

Do you still remember those good times when everybody could take a loan if one needed cash? And just imagine the condition of those who have to bear that burden nowadays when the economy is facing hard times. And for those people having loans the matter of credit monitoring is as urgent now as never before. It is not only about credit control, this also allows to save money, time, and nerves and be fast in solving loan related issues. Those who are searching for a spot where to find out about credit report with score, are invited to check out this credit report monitoring site – there is lots of information about credit monitoring and how to order the service.

Also we shouldn’t forget about possibilities given to us by digital technologies. The Internet network provides us with a truly unique chance to learn what we want or to obtain anything at the best price on the market.

For convenience of the borrowers hardly probable not all domestic banks have entered such service, as the credit calculator. It seems to be a useful thing. But, as well as in many other spheres of our validity, there are nuances. Not a secret that credit calculators consider to work but only approximately. This information can be met on sites of many banks, though also not all. There is no not only clear price of this “approximateness”, and also why in most cases the total sum of money calculated by means of the calculator, obviously is less, than real expenses of clients.

To begin with it I will quote the information from a site of the one enough powerful bank (the name I will not result not to advertise it): “For convenience of calculation of the chosen credit program you can use the calculator”. Very much it would be desirable to ask authors of this appeal: for “convenience” of whom? Bank or the client? And in general, whether it is correct to offer service in which nature distortion not for benefit of whom it is calculated is initially pledged? These are questions not idle. The calculator is necessary only in that case when it answers the purpose, that is correctly considers. But what such is “correct” in understanding of credit establishments? We will try to understand it in more details.

Let’s make experiment. We take for an example credit calculators of several banks and with their help we will calculate loan cost on acquisition of the new car. Thus we will not consider either the commission for its registration or expenses on loan account conducting, other additional losses which the borrower can incur at credit reception, i.e. we will consider only arithmetic of computations. That there was a possibility to compare aggregate results, will establish identical parameters of calculation.

We will assume that the borrower has decided to acquire the car in cost of $15 thousand (auto crediting is chosen because it is more or less renewed). Thus he is ready to pay as the initial contribution 40 % of a total sum that is $6 thousand. Our hypothetical bank, having studied its request is ready to grant to the borrower the loan for 3 years for conditions of annuity payments and the interest rate in size, say, 9 % of the annual. So let us see in the following article what we will get.

Can you remember those good times when everybody could take a loan if one required funds? And just imagine the state of those who have to bear that burden nowadays when the economy is facing hard times. And for those people having credits the issue of credit monitoring is as urgent now as never before. It is not only about credit control, this also allows to save money, time, and nerves and be quick in solving loan related issues. Those who are looking for a place where to learn about credit report, are invited to go to this credit report monitoring site – there is much information about loan monitoring and how to order the service.

In addition we haven’t forget about possibilities provided to us by digital technologies. The Web network provides us with a truly unique chance to learn what we need or to get anything at the best price on the market.

However, now basically involved not usual motorists but so-called “partner programs” banks and motor shows for car crediting. Rates on such auctions to credits hardly probable will be zero per cents! It may seem to buyers of machines that unexpectedly fallen down on them “a destiny gift” quite often it is explained that crisis hasn’t disappeared anywhere, and to sell cars somehow it is necessary. Simply to allow a discount it is not meaningful, after all many people don’t have also half of necessary sum. And here a credit on easy terms is a real way out.

But if in details to understand conditions of auction loans, it appears that they turn around even with greater overpayment, than usual auto credits. And almost a zero rate is no more than advertizing bait.

The majority of banks have the right to itself to change percent on the credit without dependence from desire of the client.

Let’s tell, in one of the banks actively offer purchase car in credit, a unique difference between from previous example described in the first part of the article is that the percent is zero. At first sight it is a freebie. However, in treaty provisions there is a curious point: the monthly commission of bank constitutes almost one percent. And it, on one moment constitutes 12 annual interest rates! All the same it is less, than usual 18-19 percent. But cunning that the percent on the credit is charged only on not paid part, and the commission undertakes from all sum. As a result the overpayment in a case of auction conditions will constitute not a small sum of money.

Similar credits are offered by variety of banks, and not only on inexpensive machines. “To perform the dream”, having arranged such loan “on unique conditions” it is very possible.

However, it is impossible to tell that the zero rate is exclusively marketing course: on some Japanese, French, Korean cars indeed it is possible to obtain the credit with very small interest rate. But it concerns only credits with an advance payment in 40-50 percent for a period of a year. Thus you anyhow should pay the commission in 2-3 percent. 1-2 more percent can be lost on the insurance, after all to arrange it, most likely, it is necessary in that insurance company which will specify bank.

Do you still remember those good times when anybody could take a loan if one required cash? And just imagine the situation of those who must bear that load nowadays when the world economy is facing hard times. And for those people having loans the issue of credit monitoring is as crucial now as never before. It is not only about credit monitoring, this also helps save money, time, and nerves and be quick in solving loan related problems. Those who are searching for a place where to find out about credit report with score, are welcomed to go to this credit report monitoring site – there is lots of information about loan monitoring and how to order that service.

In addition we haven’t forget about possibilities given to us by digital technologies. The Web network provides us with a truly unique chance to find what we need or to get anything at the best price on the market.

Having arranged the loan for 5 years, you will in anyway buy one car at the price of two.

For the first time after crisis car crediting again revives. Sales of machines on credit were doubled this autumn! In the beginning of November there is more than half from fifty largest banks gave out loans on purchasing of cars. According to experts, having rung round financial organizations, it is quite possible to find credits with an advance installment not only in 20, but also in 10-15 percent. A crediting period constitutes till seven years. And the effective interest rate (considering the latent payments) for long-term credits have fallen on the average below 20 percent and now fluctuate at level of 18-19 percent.

Borrowers also can get the car credit with not rigid requirements. The inexpensive Chinese car can be taken on credit by the person with the average official income. On loan payment should go no more than half (and in some banks – third) of the income of the client. Thus on each member of a family should remain not less than few hundred dollars.

Nevertheless to rejoice to occurrence of cheap credits specialists don’t advise. The sum which it is necessary to overpay for possibility already now to receive the new car still can beat off all desire to be credited.

For an example we will assume that we want to purchase cheap car that now costs approximately 10 thousand dollars. Within five years at an initial installment in 20 percent and the rate at 18-19 annual interest rates you overpay under the credit of 20-30 % of the cost of that car depending on the repayment form. Add to it you should add the insurance at level of 6-7 percent in a year from car cost (the insurance – a thing, probably, absolutely not out of place, however few owners of inexpensive cars arrange it voluntary). If to reject an initial down payment which is paid at once it turns out that thanks to a deferred payment you, as a matter of fact, buy one car at the price of two!

Can you remember those good times when everybody could take a loan if one required funds? And just imagine the state of those who have to bear that load nowadays when the world economy is facing tough times. And for those people having credits the matter of credit monitoring is as crucial now as never before. It is not only about loan control, this also helps save money, time, and nerves and be quick in solving loan related issues. Those who are looking for a spot where to find out about credit report, are invited to go to this credit report monitoring site – there is lots of information about credit monitoring and how to order that service.

Also we shouldn’t forget about possibilities provided to us by digital technologies. The online network provides us with a truly unique chance to learn what we need or to obtain anything on the best terms which are available on the market.

But the right of the state help has not everyone. Students aged till 28 years, successfully handed over admission examinations or already trained in high school can become borrowers only. By the way, on reception of the similar credit it is possible to count only once, but on all modes of study (day and evening).

However, means for long-term crediting are strictly limited, and allocated as at the expense of local, and state budgets. Let’s notice that among members of parliament the question on granting of privileges to students with children time and again made a reservation at paying for educational credits. And the corresponding bill this year all the same has been accepted. The confirmed document completely has released from the students having one child, from payment of percent. Besides, for parents that are having two children repayment by the state is provided 25 %, a three and more — 50 % of a total sum of a debt.

The problem in what to receive a concessional lending is not also simple. First, the budgetary sum suffices not all “contract employees” (today them are about 500 thousand). Secondly, not all private high schools willingly meet half-way planning to study at the expense of the state credit: till now the mechanism of transfer of means isn’t fulfilled. Thirdly, in case of bad progress of the borrower, as a rule, he is obliged to return the monetary investments listed for last semester. It is obvious that the most accessible to the majority of students still have a variant of financing of training within the limits of bank loans.

The educational credit is a product rather new to domestic banks. The majority of clients of financial structures if dares to take loans then in most of the cases it is for more prosy requirements. For example, it can be acquisitions of the car, furniture or home appliances. But experts of financial market mark gradual growth of popularity of loans on training, especially among persons interested to receive the second higher education.

It is interesting that students is more often resort to services of state banks, instead of private universities that is quite explainable: in case of a failure on competition on the budget they aren’t ready to pay training for the contract by own forces.

Do you still remember those good times when anybody could take a loan if one required money? And just imagine the condition of those who have to carry that burden nowadays when the economy is facing tough times. And for those people having loans the question of credit monitoring is as urgent now as never before. It is not only about loan monitoring, this also helps save money, time, and nerves and be fast in solving loan related issues. Those who are looking for a place where to find out about credit monitoring, are welcomed to visit this credit report monitoring site – there is lots of information about credit monitoring and how to order the service.

In addition we haven’t forget about possibilities given to us by digital technologies. The online network gives a really unique chance to learn what we need or to get anything on the best terms which are available on the market.

Let’s notice that special credit programs for pupils are given far not by each bank (there can be for example only ten banks in a country that are having such programs). Frequently means for training suggest occupying within the limits of the universal consumer loan calculated on financing of any household requirements (purchasing of the goods, repair of apartment and etc.).

As a rule, borrowers don’t report, the borrowed money has been spent for what purposes. Therefore and to track dynamics of growth of popularity of similar loans is difficult enough. However, already today some banks start to take an accurate rate on forming of services in granting of educational credits. For example, some banks have reported that the special credit program for students is at a stage of development and in the near future will be started.

Credit union offers some forms of reception of the credit. First, the student can act as the borrower independently, and one of parents only can be charged for him. In that case it is necessary to give the passport, the documents confirming incomes of the guarantor, and an ownership right on apartment, the car and etc.

Besides, don’t forget to add the contract on training and the account on payment of the first semester. Secondly, the credit has the right to receive and actually one of parents. Then to the list of documents it is necessary to add the certificate of birth of the child, wishing to get education.

It is not necessary to remove from accounts that the bank can and refuse credit granting! Frequently such monetary institution decision is given reason by low level of incomes of parents of the student or its other guarantors. The situation is even more aggravated, if in ownership of a family there is no own real estate or vehicles.

So the decision to take or not to take the credit for training depends not only on you. But before to doom itself to a debt hole you should count possible monetary losses independently. And the main thing is that you have to think: whether that education which you want to receive cost so much efforts and means? After all neither the high school, nor a specialty shouldn’t get out at random. Especially, if money for training has to be borrowed.

Can you remember those good times when practically anybody could take a credit if one required money? And just imagine the situation of those who have to bear that load nowadays when the world economy is facing hard times. And for those people having loans the issue of credit monitoring is as crucial now as never before. It is not only about loan control, this also allows to save money, time, and nerves and be quick in solving loan related issues. Those who are searching for a spot where to learn about credit report, are invited to go to this credit report monitoring site – there is much information about loan monitoring and how to order that service.

Also we haven’t forget about possibilities given to us by digital technologies. The online network provides us with a truly unique chance to find what we want or to obtain anything on the best terms which are available on the market.

To deserve the right to get education at the expense of the government budget under force not to all yesterday’s schoolboys. Unique chance to graduate for many children there is a receipt on a contract basis. But if the sum specified in the contract isn’t entered in any way in the household budget item of expenditure it is possible to borrow and not only at relatives or neighbors…

According to statistics, about 60 % of students of domestic high schools today are trained on a contract basis. Despite so vital figure, paid education for the present it is impossible to name accessible to the majority of people. One thousand dollars is completely not conditional is that minimal cost of knowledge which should be paid for a year of training at university.

Add value of residing (as a rule, paying for apartment: places in a hostel or anything else), food and journey — and receive far not iridescent picture of student’s expenses. However, it is not necessary to despair. The main thing is desire to study in the university and necessary means somehow will be received. If, of course, you know where to search.

Debt obligations

Probably, for the majority of our young compatriots it becomes revelation that in countries of Western Europe there is accurately developed mechanism allowing all wishing to graduate (let even on a paid basis).

So in Germany (where, by the way, 90 % of students and without that are trained free of charge) pupils from needy families can count on reception of the state interest-free loan which comes back only after the high school termination. And that everything, but only at a rate of half of the given sum.

In the West similar examples is not the single phenomenon. And though in other countries there is such concept as the state long-term crediting on formation reception, the care of officials of rising generation higher education is practically limited to “booking” of budgetary places in the state high schools. Also in some countries loans can stand out for training in higher educational institutions of different patterns of ownership. And that especially pleases, under the acceptable interest rate in 3 % annual.

Do you still remember those good times when anybody could take a credit if one required funds? And just imagine the state of those who have to carry that burden nowadays when the world economy is facing hard times. And for those people having credits the question of credit monitoring is as urgent now as never before. It is not only about credit monitoring, this also allows to save money, time, and nerves and be quick in solving loan related problems. Those who are looking for a place where to learn about credit reports, are invited to go to this credit report monitoring site – there is lots of information about loan monitoring and how to order the service.

Also we haven’t forget about possibilities provided to us by digital technologies. The online network gives a truly unique opportunity to discover what we require or to obtain anything at the best price on the market.

Expectational growth of crediting wasn’t performed. And though the share of the given out loans has increased a little, overdue credits also continue to be multiplied.

The beginning of a business season was marked by growth of active operations. According to national bank, in September-October the credit portfolio of banks has grown on 1,7 % – to 733,1. Such gain is the maximum result from the beginning of 2009. For comparison – from January till August, 2010 the credit portfolio of all banks has grown too.

The basic contribution to growth of credit portfolios, as well as to the last months, crediting of corporate sector has provided. The basic borrowers are the enterprises oil and gas and iron and steel industry, the enterprises working in an export direction. And also the processing companies of the agrarian and industrial complex, which productive activity carries seasonal nature.

Activation of corporate crediting could be felt in the second quarter, and it occurred at the expense of more long-term sources. Bankers assert that today it is already possible to speak about systematic restoration of crediting of legal persons. Though, of course, still early to state a little essential breaks in real production sector crediting.

The consumer sector also shows revival. Only in September the portfolio of credits which have been given out by banks to the population, has increased too.

First of all growth is caused by activization of consumer crediting and issue of no-purpose cash – and card credits. As well as it was provided, in second half of year a number of major banks became more active on granting of consumer crediting. The population with pleasure has responded to possibility again to buy technics on credit.

Interest of banks in development of consumer crediting depends not only on mood of consumers. Certainly, banks for which this type of activity profile, always were present in the market. However a number of monetary institutions leave with the similar offer under the pressure of the large corporate borrowers – home appliances supermarkets. Banks develop crediting to improve indicators of sellers of home appliances and to have possibility to serve buyers. Such credit far not to everyone as it costs much– its cost constitutes 60 % – 100 % from a loan body. Therefore also it is not necessary to speak about restoration of consumer crediting yet.

Do you still remember those good times when practically anybody could take a loan if one required funds? And just imagine the condition of those who have to bear that load nowadays when the world economy is facing tough times. And for those people having credits the matter of credit monitoring is as crucial now as never before. It is not only about credit monitoring, this also allows to save money, time, and nerves and be quick in solving loan related problems. Those who are searching for a spot where to find out about credit report with score, are welcomed to go to this credit report monitoring site – there is much information about loan monitoring and how to order the service.

Also we shouldn’t forget about possibilities provided to us by modern technologies. The Internet network gives a really unique chance to find what we require or to obtain anything at the best price on the market.