Personal payday loan – what to take note about this loan?

Personal payday loans have special online platforms. These then broker the loans from private individuals. A solution may be found for those who do not get a loan from a bank.

Personal payday loan

Personal loan

To take out a loan, you don’t necessarily need to go to a bank. Money can also be borrowed from private individuals.

Relatives or close friends are the simplest solution, since it is usually also possible to save interest.

Advantages of personal payday loans

Advantages of personal loans

Taking a loan from relatives or friends has several advantages. Firstly, there is no demand at credit check and no entry is made for a loan. In addition, the loan agreement can be made easier than at a bank. There, the personal payday loan application is significantly more extensive. Because as a private person, the terms of the loan can be freely decided, legal regulations do not have to be considered here.

The situation is different for banks, because certain conditions must always be met here. A credit check will always be necessary to check the borrower’s creditworthiness . Having to show proof of salary is not uncommon. With a private loan , however, it is not absolutely necessary to agree collateral. On the other hand, a transfer of income often has to be approved at a bank.

Disadvantages of personal payday loans

Disadvantages of personal loans

Even though it may sound simple at first to take money from a private lender as a private individual, there are still a few things to keep in mind. A contract should always be drawn up, even with a personal payday loan .

This way, all important points are recorded in writing, because problems can quickly arise with verbal agreements. It is important to define a term here, otherwise the lender can cancel the loan at any time with a three-month notice period. The entire amount would then be due.

Other points to be recorded would be the loan amount, the payment and repayment dates, and the interest rate. A major disadvantage is the lack of consumer protection. Because in the event of a dispute, a private borrower cannot contact a consumer protection organization. In the case of a private loan within the family or between friends, there may also be inconsistencies that can put a permanent strain on the personal relationship.

It should therefore be carefully considered whether a loan from family or friends is an option.

Private loan as a lender

Private loan as a lender

As the one who gives personal payday loans, there are also a few things to consider. The income, i.e. the interest from personal payday loans, must be taxed, for example. If there is a loan between relatives, the interest income is taxed differently depending on the purpose of the loan. You should inquire here beforehand.

Loan money for tractor – find loan here

The tractor is an important asset to the farm, but it is not always that there is capital to be able to finance, as there are many other expenses that need to be taken care of. Therefore, it may be necessary to borrow money. There is an option to go to the bank loan, but it can sometimes be difficult to get a loan approved, and so the opportunity to borrow money online is instead.

The smart thing is to borrow online for a tractor

The smart thing is to borrow online for a tractor

There are many online loan providers who would like to lend you money for a tractor. The nice thing about them is that you do not have to provide security against the money you borrow and you also do not have to explain what the money should be used for. It is therefore easier to get a loan approved and the money can be paid out easier. What makes the loan so easy is that it can be borrowed from the couch at home, so you do not need to meet up anywhere to talk to a counselor.

How much can you borrow for a tractor?

How much can you borrow for a tractor?

It varies how much you are able to borrow. It depends on which loan provider you choose, and also depends on the type of loan you choose. You can get an overview and the different loan providers and how much they will loan you by using our loan calculator here on the site.

The various loans you can take, we have here divided into consumer loans and quick loans.

Consumer

With a consumer loan you have the opportunity to borrow up to USD 350,000 and have a maturity of the loan of up to 15 years. It is therefore a loan that is suitable when larger amounts have to be borrowed or if a longer maturity is desired on the loan.

Payday loans

A quick loan is a fast loan loan that must be repaid quickly. The maturity is typically 30 days, and because the maturity is so short you also cannot borrow very large amounts, namely only up to USD 6,000, in some cases USD 10,000.

This loan has very high interest rates and it is therefore very important that it get paid back quickly. However, some loan providers will let you borrow for free the first time you borrow if you simply repay the money within the 30 days.

How do you apply for a loan for a tractor?

How do you apply for a loan for a tractor?

It doesn’t take long for you to have a tractor loan in place. Simply do the following:

You can find our loan calculator here . This one you can use to find out which loan provider is right for you. Simply enter the amount and maturity you are interested in and you will get an overview of the places you can borrow.

You choose from the different loan providers whom you would like to borrow from and press the application button, which will send you to the loan provider’s website.

At the loan provider, you must complete an application form – it only takes a few minutes.

You are waiting to receive a response to your application.

If your application is approved, you can typically receive the money on the same day or the following day. 

Is a mortgage or building savings loan worthwhile?

The CNB tightened the conditions for obtaining a mortgage loan . Does this tightening lead to a return to building savings? Isn’t building savings loan worth more than a mortgage now?

First I have to save, then can I take credit?

money loan

Yes and no. If you have saved a minimum percentage of the target amount and save at least 2 years and at the same time you have fulfilled the “evaluation number”, you draw the so-called regular loan from building savings . If you do not meet any of these conditions, you will use a bridging loan . So you can get money even if you have not saved, even if you do not meet the condition of two-year savings.

Building savings loans are harder to compare

money loan

Not that comparing mortgage loans was easy, but compared to building savings loans it could be said that it is a little easier. This is primarily a method of repayment. The repayments of the building savings loan consist of several parts .

1) The bridging loan phase

money loan

In this case, two amounts are repaid:

(a) interest on the total amount of credit
b) so-called uptake , which is the amount that is saved up to a certain minimum amount of provided loan (target amount). Usually this minimum level is between 40-50%.

The interest rate on the bridging loan can be fixed for the whole duration of the loan or only for a certain period of time (3, 5, 10 years), similar to the mortgage loan . It also depends on the interest rate, which can be cheaper, but also more expensive than a standard mortgage. You can accelerate the termination of the bridging part of the loan by the amount of the additional amount . There is also the possibility of extraordinary installments without penalties or charges .

2) Regular credit phase

money save

Here comes the same method of repayment as the mortgage . It is nice that at the moment of granting a regular loan, the original bridging loan is partially repaid by the saved amount in the building savings account and the rest is amortized by a regular building savings loan.

Compared to the mortgage, however, a regular loan has a fixed interest rate throughout the repayment period, which can be an advantage and disadvantage (depending on the current situation on the mortgage thorn). Furthermore, there is the possibility to repay the loan at any time without any penalty , which most mortgages outside the period of fixation does not allow.

Tip

There are two building societies (Modrá pyramida stavební spořitelna and Stavební spořitelna České spořitelny), which offer an “improved” loan, with the bridging loan and maturation phases shortened. At the same time, they offer a repeated fixation of the interest rate for the selected period. So the repayment process of the whole loan is very similar to the repayment of the mortgage.

Gradual drawing of the loan

Gradual drawing of the loan

If you plan to draw a loan gradually over a longer period of time (eg in the construction of a family house or in development), then there is another fact to consider – see below.

Difference in gradual drawing of credit:

Building savings loan

Mortgage loan

after the first drawdown you pay the entire installment

you only pay interest on the average drawn part of the loan for each month

no matter how long the loan is drawn, you will not pay any extra

only after the drawing has been completed, you will repay the interest and part of the debt within one installment

Here you can see that if you have a mortgage, the longer you take out the loan, the more you overpay . On the other hand – at the time of construction of the house you can probably pay the rent for the existing housing and not paying the full amount of the installment may be useful .

However, it should be borne in mind that this rule does not apply to all mortgage loans and all building savings loans . As in everything there are exceptions. Therefore, we recommend that you always consult your situation with a comprehensive financial advisor.

Loan for the purchase of a cooperative apartment

For a selected building savings bank you can save significantly if you need a loan to buy a cooperative apartment with its subsequent transfer to private ownership within 12 months. So you don’t have collateral now.

Building savings loan

Mortgage loan

Until you secure the loan by pledge (until the cooperative apartment is transferred to your personal property) you pay a monthly flat fee of a small amount

until you secure the loan with a pledge (before the cooperative apartment is transferred to your personal property) you pay a higher interest rate, ie thousands of dollars

To put it simply, building societies are willing to offer relatively high loans without the need for immediate collateral. The same, however, some mortgage institutions, even without limiting the amount of credit.