Tag: credit

Crediting After The Crisis Period Final Part

Non-returns situation

According to research company, 30 % of people have run into debt under credits. From among debtors 24 % took a consumer loan, and 2 % for purchasing of a car and a mortgage. The majority of borrowers have reported that spend for payments from 20 % to 30 % of the income. Since February, 15th, 2011 amendments to a number of laws which will improve compulsory execution will come into force for the sake of judicial-finance solutions.

So, the bank can force to implement the debtor pledge, cost to 150 free minima, without auction, through commission shop. Term of voluntary accomplishment by the debtor of the judgement is excellent. Trip abroad can prohibit not only to the debtor-physical person, but also its chief. At last, arrest on the money funds placed in financial organizations (for example, accounts of the insolvent borrower) extends now and into the accounts opened after the judgement on such arrest.

Adoption of law about executive production and some other legal acts as a whole is positive. Today decisions of the courts, including on credit disputes aren’t performed for years. Frequently execution lasts longer, than proceeding. In this time the debtor continues to use de facto borrowed funds, causing thus damage to the creditor, increasing a nominal debt for which collecting the creditor is obliged to address in court with the additional claim.

The reason is such as acting and archaic enough legislation on executive production which allows the debtor to tighten in every possible way with little effort executive production, making in court so-called technical complaints and claims about each procedural action of the state contractor.

In the said act the rights of the state contractor are more concretized, some simplifications of realization of mortgage property of the debtor (in particular, at the auctions will be implemented only by the real estate of the debtor movable – through commission trade shops) are entered. Some changes are made to judicial procedural codes for the purpose of elimination of contradictions with the Law about executive production. For judgement of non-execution, except a criminal liability, the administrative is entered also.

In general, as to disputes of banks with borrowers the majority of them are initiated by borrowers for the purpose of evasion from accomplishment of the obligations, therefore also the argument at them frequently decided. Recent generalization of judiciary practice has actually given up as bad job so-called disputes on currency credits. Today it is a lot of interesting and loud disputes – basically it is credit and mortgage disputes of banks with large enterprises, affairs about bankruptcy of large borrowers.

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Banks Are In Search For Borrowers

Banks willingly advance special credit programs and ever less offer clients celebratory depositary conditions. Unlike before when resources were extremely necessary to banks in this new year financial organization have approached with the overflowed pockets and no special desire to expand depositary portfolios. Therefore it is possible to meet the bank advantageous offer under the deposit less often. In the conditions of absence of qualitative borrowers bankers direct the basic efforts on search of those to whom money is necessary. Though favourable offers can be picked up both for credits, and on other bank products: to deposits, payment cards, bank cells.

Now to find the depositary share at major banks is difficult enough. On the threshold of 2011 there was already a question of arrangement of accents in attraction of means from the population for realization of more long-term plans. As experts say, the main objective of the majority of market makers which left with Prenew Year’s shares under deposits is to stimulate the investor to long-term placing of means.

However, at small financial organizations a situation with liquidity is not such iridescent. From here – the raised rates under contributions, draws of every possible gifts and prizes. The analysis of offers of banks shows that on the average the rate on the deposit in small and midsized bank is above base on 0,25-4 %.

And there are much more special favorable credit proposals – and, including, from major banks. More often on credit it is suggested to acquire the car. Sometimes it can be an apartment incredit. And in the latter case some banks suggest not to pay a credit body the first couple of months or even half a year (in particular, such Prenew Year’s share was started recently by some of the bank institutions).

On the eve of holidays are frequent enough among domestic banks and “card” shares. Often enough people may get some presents for using credit card while purchasing something. However, it is faster the tool of promotion of products friendly to bank of structures, rather than real possibility of attraction of clients.

By the way, according to economists, the shares connected with payment cards, quite often pursue the purpose to popularize plastic. Anyway many New Year’s shares are directed on demand popularization in a certain grocery segment.

According to the chief of department of marketing and bank business development , now consumers with pleasure participate in shares, and the word “share” possesses today the psychological effect stimulating to action. By the way, efficiency of the share to trace than standard marketing actions is much easier, – the banker speaks.

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Crediting After The Crisis Period Part 2

Without risks, mortgage borrowings with a floating rate look much more attractive, than the usual one. But risks, as it is known, sometimes can turn a situation upside down. However, it is already closer to a policy. And among mortgage loans mark following tendencies: despite stable decrease, real rates fluctuate around 19,5-20,5 %, depending on term. Banks give loans, as a rule, on the security of the most acquired real estate or with additional pledge. Basically loans are given out under concrete construction objects, thus the advance brought by the borrower should constitute from 30 % to 50 % from habitation cost. Living space purchasing on a secondary market are ready to finance about 25 banks practically on the same conditions. And only some banks declare readiness to credit with pledge only with 10 percent advance, but on the security of acquired habitation plus of one more object of real estate.

Car credits come back too.

After sharp decrease (to 17-20 %) average rates on automobile loans have started to look again upwards – usual thus banks regulate a flow wishing to use their services, or they believe that this segment has already groped the price bottom. The most widespread today are auto credits for from a year to five – they are offered almost by many banks. However, judging by conditions, financial organizations see the clients as enough secure people to whom before long-awaited purchasing remains absolutely slightly. Also they are ready to grant them a loan, but with a payment term from 15 % to 80 % from cost of the new car. The real rate under the credit thus constitutes from 11 % to 30 % annual.

More and more banks are ready to give loans for long term – five, and even seven years. And even to credit purchasing of second-hand car, but, as a rule, only foreign cars, with advance of 30 %, and more often – 50 % and for terms from a year to four (with rare exception – for five years).

For the solvent client with banks are ready to compete and motor shows, offering partner programs with more low interest rates – 1-3 % annual. But it is not obligatory to have long-term credit history to understand: cheaply it is not always good. And under the partner program to the buyer, as a rule, can offer and the limited assortment, and to include the various commissions (monthly it is 0,5-5 more %), to demand additional documents, guarantors, and also to impose the company-insurer. Nevertheless experts expect the further activation of auto crediting and softer conditions for borrowers for the next year.

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How To Acquire The Car In Credit? Part 1

So in these series of articles we are going to talk about car acquire in credit as in the time of economic crisis this subject is especially interesting. So if you are also interested in it you should definitely read these articles.

The car credit is one of the most demanded credit products among the population. It has set of programs which allow buying almost any car in credit both of domestic and importing production. The core and a general term for a capture of a purchase credit of the car under any credit program availability of sufficient level of the income which would allow returning the taken credit.

At buying of the standard car credit which provides acquisition of the new car as domestic and import production through a motor show it is necessary for borrower to give to a creditor bank a packet of documents in which enter:

– The inquiry on incomes;

– A copy of operating permits;

– A copy of the work record card which is assured without fail by the employer;

– Copies of id data of the borrower and his wife or the spouse if are that are available;

– The request for buying of the car credit and the questionnaire.

It is a standard packet of documents can be expanded at the discretion of bank. So some banks can ask to present such additional documents as a copy of marriage certificates or its termination, a birth of children, the documents confirming an ownership right of the borrower on real estate, etc.

Bank, having received from the borrower a packet of documents sends them on check in the security service. After passage of check the creditor bank makes the decision on granting or not credit granting. After affirmative reply reception corresponding papers are made. As 4 parties participate in registration of this purchase credit of the car: the borrower, a creditor bank, the insurance company and a car dealer and the borrower concludes agreements with all concerned parties.

The size of the interest rate at car purchasing on credit not fixed also depends on a crediting period, from the size of the initial contribution, from a credit currency kind. So on the average the size of the loan interest rate given within 3 years in native currency can constitute from 12 % to 19 % depending on the size of the initial contribution.

So if the initial contribution is less the above there will be an interest rate. As the interest rate will increase in case of credit granting within 5th years. If the credit is given in foreign exchange the annual interest rate doesn’t depend on term of repayment of the taken credit and averages from 9 to 12 %.

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How To Get A Credit History? Part 2

So let us continue talking about that ways that can help you to find out where you can get the credit history from and why it can be useful for your financial future and wellbeing.

If you have received the answer from the Central Catalogue of Credit Histories that the information isn’t found, means or you have entered not the correct data, or haven’t agreed to enter your credit history into the catalog. Also, if you took the credit like 5 years ago your credit history can be also absent as till this period your credit history could be deleted from the catalog.

After you find out where your credit history is stored, it is necessary to address in bureau of credit histories, to make inquiry about the credit history, having specified the surname, a name, and other id data. The inquiry form can be found on sites of all bureaus of credit histories.

Also there are different ways of receiving a credit history and credit report. So let us find out some of these ways.

Hence to receive the credit history it is possible in few ways, what are they?

– To approach personally, to write the application and to receive it at once, or within ten days;

– It is possible to make inquiry which should be assured notary and sent by the letter with special delivery in bureau of credit stories. In time from ten about fourteen days from the moment of inquiry reception, the credit report will be given you by mail;

– To send inquiry from mail through the special telegram

If these procedures to you seem difficult, address in the bank which has refused to you in issue of the credit with the statement in which ask to give out you credit history for this purpose that you have familiarized with it as consider the bank decision unreasonable.

If you didn’t give the permission to transfer of data in bureau of credit stories you don’t have generated credit history. For this purpose that to receive it if it necessary to you it is possible to make it in any bank in which you took the credit before and the credit history in this case is formed by you selectively, under any credit contracts concluded earlier.

Remember that the good credit history is the pure reputation. Don’t spoil it and then you can use credits in banks under good interest rates, for great sums and for longer terms so to be more successful in business and in life. So that is exactly how the credit history can help you in your financial future and financial wellbeing. That is why you have to consider it very attentively, carefully and very thoughtfully.

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The International Crediting: What Is This?

Basic reason on which the international crediting is performed is the requirement of the countries with transitive and developing economy in additional means for production and economy development. General process of globalization is shown in economic cooperation of the countries with the developed economy and the countries with transitive economy.

Characteristic feature of economy of the countries, which steels to adhere to a vector of market development, inability of their internal bank systems to complete, timely and to economy long-term financing is. It is connected with resource shortage for investment in the country. In this case also there is a requirement for an international credit or the state external loan.

The international credit represents capital transfer in a plane of economic relations between the countries which is connected with transfer of resources (currency, commodity) in time using on the following terms:

1. Reflexivity – the capital invested in time using, should be returned in full;

2. Paying capability – the country borrower pays for using the credit percentage compensation (the size is stipulated in the crediting agreement) to the country to the creditor;

3. Promptness – the loan is transferred to the borrower in using for a certain period of time (it is stipulated in the credit agreement);

4. Target use – the international credit stands out on in advance stipulated and approved government programs (financing of various industries of production, agricultural industry etc.);

5. Security – a loan repayment guarantee.

Object of the international crediting – money resources. Subjects – private enterprises (firm, bank), the international (regional) credit organizations, the government, official bodies.

Credit money in emerging market economies has certain features. The basic part of international credits is given in shape: a soft credit, a grant under intergovernmental agreements. Reception of loans under preferential interest rates is influenced by such factors, as:

an economy level of development;

the political;

the strategic;

economic crisis experience.

Borrowing countries can be divided on two primary groups: the countries with badly developed economy and the countries with rather developed economy. Badly developed countries use official sources as resources of a private origin aren’t accessible to them because of dearness and rigidity of credit conditions for crediting.

In addition to everything, the countries with low developed economy cause mistrust in investors because of the imperfect legislation and inconsistent internal policy. The states with rather developed economy presume to be credited to themselves by private international resources. Economy of these countries is characterized by certain development and integration into world system of internal financial markets.

The international crediting has great value, but its role can’t be estimated unequivocally. Many countries which used external financial flows for development of the economy have become successful. But frequently it is possible to meet and examples of that despite the big international crediting, the state economy couldn’t make a qualitative step forward in the development. Failure basic reasons at external crediting:

economic crisis consequences;

no-purpose use of credit resources;

infringement of a ratio of rates of recalculation of currencies under the agreement (leads to losses of the borrower).

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The State Crediting: What Is This?

The order and rules of the state crediting depends on the subject of the borrower in which order state loan money funds are given. The state and municipal enterprises can be given separate percentage and interest-free loans from the budget sums on conditions and within the limits provided in corresponding section federal or the local budget.

Borrowers on the termination of term of the credit agreement are obliged to return budget credit means and also to give the complete information and the report on its use in executive and regulatory authorities who are responsible for execution of the budget on the basis of legal acts and permissions. The bodies who are responsible for execution of the budget, lead registers in which all given budget credits are registered.

To accounting entity which isn’t the state or municipal enterprise, the public credit can be given on the basis of the agreement on the terms of mutual advantage and security. As obligation fulfillment provision on return of means of a budget credit bank guarantees, pledge of property a minimum of 100 % from the sum of the given credit, the guarantee can act. The given provision connected with obligation fulfillment, can’t have liquidity low level.

The state crediting has the mandatory condition, this carrying out of preliminary check of a general financial condition of the borrower. Authorized bodies are allocated by the rights to check of the receiver of means of a budget credit, and also to the subsequent check of a special-purpose designation and uses by the receiver of proceeds of credit throughout all contract period about credit allocation. The credit is given to legal bodies; only in that case if they don’t have defaulting debt on the means of the budget allocated earlier on a returnable basis.

Public credit means it is listed to the borrower on its budget account opened in the credit organization. The further operations and payments for the account of means of a public credit are conducted by the borrower independently both according to a special-purpose designation of the credit and in strict compliance with laws which are provided by the civil legislation.

Fund means are given to the agriculture enterprises in independence of their organization-legal form of government at housekeeping and a departmental accessory. Means are allocated within planned and confirmed by the law on the budget of limits, on the terms of payment of percent at a rate of 1/4 base rates given by Central bank at date of registration and credit issue.

One of forms of the state or budgetary crediting is modification of the due dates for tax payment and obligatory state collections. The order and rules on the organization of work of the delay connected with granting, the tax credit, a deferred payment, an investment credit on payment local and the federal taxes and collections, and also the sum of the penalty fee which is subject to transfer in the government budget, is regulated by laws and tax legislation resolutions.

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How To Get A Credit History? Part 1

In these series of articles we will find out of where to get a credit history and how it can be useful for you. So if you are interested in this subject just keep on reading. So let us begin with the first part of article.

Issue of credits for banks is a risky process. For this purpose to protect yourself and to insure the money, banks conduct careful check of documents and data of the potential borrower. Received data on the borrower is his credit history, that is consecutive records and the data about the previous credits which characterizes you as the solvent creditor and it can help you in taking the credit and you can even get some better terms of credit if your credit history is in proper order.

Earlier this data registered in a credit application of the borrower, but not always this data could be authentic. There are bureaus of credit histories which collect data on creditors which ever obtained credits in banks and about their obligations.

How to find out your credit history each borrower who addresses in bank for the credit should know. Especially it is required in banks which give out credits without inquiries on the income and without guarantors.

While getting the credit history in bureau of credit histories it is necessary to address there personally or to constitute the letter of attorney assured juridical on the person which will address in bureau of credit histories. To check up the credit history through the Internet in any way it is impossible, only having addressed personally in bureau of credit histories.

Once a year, according to the legislation, the credit history can be received free of charge. At repeated circulatuions in bureau of credit stories, the credit history stands out for a payment. Thus doesn’t play a role for what you want to get the credit history for personal studying or for granting in bank.

So where else you can get a credit history from?
In a case if to you the code appropriated at registration of the credit agreement is known, on a site of Central catalog of credit histories it is possible to learn in what bureau of credit histories there is your credit record. To obtain the data, the surname, a name, the given id and a code appropriated at issue of last credit agreement will be enough if you want to receive your credit history or credit record.

If you don’t know the code it is possible to send the telegram assured by the notary in Central bank and within ten days to you will direct the written answer with addresses of bureau of credit histories in which your files are stored.

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Corporate Crediting: What Is This? Part 2

So that financial organizations felt in crediting more confidently it is necessary to settle legislatively this situation and to carry out judicial reform. The third and most powerful factor which is necessary for renewal of mass corporate crediting is availability at banks of long-term resources. It is not a secret that monetary resources which are today at the disposal of banks are short-term. Even contributions of the population which now are the longest resource are involved for about three months. Before crisis this problem dared basically at the expense of attraction of money from abroad. Having lost such possibility, almost all banks have been forced to be switched to short-term crediting (about one year). Renewal of mass long-term crediting becomes possible only when this problem will be solved. Hardly probable it will occur before 2011.

The bank credit first of all the companies which could overcome the period of falling of economy which continue to work and expand the business. Among the most interesting industries is agro sector and adjacent sectors to it. The main criterion on which they judge the client is its ability to meet payments, possibility to serve the loan to predict the activity on long prospect. The basic product is crediting of a working capital of the companies which is given for the term up to a year. But with financially stable companies showing good results, we are included into projects for the term up to three-five years. The basic question which stands now before banks is to find good solvent clients. The main thing is not from what industry is the borrower; it is important that he effectively worked in present conditions and had possibility to return a loan.

From the beginning of year banks have started to credit more actively, we see positive dynamics in this segment. But mass long-term crediting will return on the market, most likely, not earlier than the next year.

Though our bank didn’t stop corporate crediting in crisis, the basic approaches, unconditionally, have changed. We have continued to work with those sectors of economy where we feel confidently and where our borrowers feel confidently.
Today bank’s basic direction is crediting of agro business and the industries connected with it. We give to agricultural productions such products as working capital replenishment, seasonal financing, still we consider investment crediting for purchasing of the equipment, agricultural machinery, commercial transport. Certainly, to borrowers serious enough demands are made. They not only study financial reporting of their clients, but also constitute together with them the forecast of their future activity. Thus, we estimate capability of the company to repay and serve credits throughout the financing period.

For example, at work with the agro companies they study overall performance of an economy, and also enterprise contracts on goods realization. Ability to meet payments of the company and its possibility depends on these two factors to serve the credit.

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Corporate Crediting: What Is This? Part 1

So let us find out what is the corporate crediting and its influence on crediting system in the whole.

Bankers promise to renew mass crediting of corporate sector in the end of flowing and the beginning of next year. Renewal of corporate crediting is a complex problem which is necessary for solving not only to commercial banks, but the government, too.

Today it is already possible to say that the bank system has sufficient monetary resources for crediting renewal. It was felt by everything, and loan interest rates have started to decrease. However in many respects the keystone to success at renewal of corporate crediting is degree of problematical character of portfolio already saved up by bank. If the financial organization had complexities with repayment of old credits, it will give out new credits very carefully. As a result we have a situation when, on the one hand, “old” credits push banks to crediting activation, and on the other hand there are serious fears concerning possibility of origin of new problems and new defaults.

One more vital issue is the legislation. To make active corporate crediting, the banks should confirm a number of changes in the position regulating questions of forming of reserves under credit operations. Besides, possibilities of protection of the rights of creditors should be registered in the legislation. It is a lot of borrowers now don’t pay under credits or try to win time, detaining payments. Therefore to banks all is more difficult to find conciliatory proposals, including through mechanisms of judicial system. The problem of quality of a credit portfolio in many respects depends on concrete bank and from it developed what programs within last several years.

Today it is necessary to put a question more likely not about renewal of corporate crediting, but about when it leaves on volumes of pre-crisis level — 2007-2008. One of the factors which have caused the termination of crediting during crisis is low liquidity of bank system.

Already it is possible to say that this obstacle can be overcomed. The situation has obviously improved, banks had short-term resources. That fact that this money isn’t used for economy crediting, it is possible to explain the several reasons. The first is a general economic country situation and uncertain forecasts concerning production and trade growth.

Many companies during crisis stated falling of sales volumes, profitableness decrease. As consequence — the confidence of banks of their ability to meet payments and possibility to return loans has reeled. The second factor is a condition of domestic judicial system. Almost all banks have faced a problem of non-payments under credits. The enterprises, even having necessary means, in large quantities refused to liquidate debts and creditors could do nothing with it.

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