Every day we are bombarded with a sea of advertisements and offers from banks and credit institutions about the best and most favorable loans. The lowest interest rates, the best effective interest rates, the most favorable repayment period, no repayment costs, no intercalary interest, many options, and every financial institution claims to be the one with the best option. It is therefore not surprising that it is not an easy decision to make a loan. There are too many factors to consider that can significantly change your financial situation. It should, therefore. better informed to find the best loans. It is best to collect a few offers from banks and credit houses and then the terms of the loan. However, one should keep in mind the hidden pitfalls such as interest rate volatility, intercalary interest, processing costs, notary and the like, as all of these affect credit.
What factors affect the most favorable loans?
The amount of the most favorable loans at first is determined by the interest rate, but in fact the actual indicator is seen in the amount of the effective interest rate. The effective interest rate reflects all the costs of the loan, including processing fees, itercalar, deposit insurance, etc. A lower effective interest rate indicates a more favorable loan. But this also only applies to loans in kuna and a fixed interest rate. If the loan is denominated in euro or another currency, there is a further risk of using a foreign currency that does not enter the effective interest rate.
In the same way, the convenience of a loan is affected by intercalary interest.
Intercalary interest is an expense that is incurred because of the difference in time from loan placement to the start of repayment of the first annuity or monthly installment. The smaller the period, the lower the intercalary interest rate and the higher the savings. Very often, clients do not know what intercalary interest is, so they do not put it into the loan calculation. Because of these factors, seemingly the best loans can be the most expensive.
Best loans: What is the situation with credit houses?
Credit houses have eliminated all of the above from the equation. With them, the complete realization of the loan goes online, and the loans are paid out within 24 hours at the latest. Therefore there is no room for intercalary interest. There are no notary fees as the documentation is reduced to an ID and current account card. The request will take a few minutes to complete if the documentation is complete.
This type of lending is reduced to a shorter period of time, which means that the overall interest rate is lower than for long-term loans. Thus, such loans can be classified as the most favorable loans, but also due to the fact that there are no additional costs such as processing fees, appraisal, notes, notarization of notary public and the like.