Personal Loans Based on Income

Banks credit risk connected to the physical person’s crediting, also called bad and frozen loans (when the borrower can not pay out loan rates completely , is determined both by income, physical state and features of the very person himself. So while deciding on an individual crediting any bank will take into consideration loan guarantee factors combined with personal qualities of a borrower. Borrowers’ application for the loan is a standard application: client’s dates (name, surname, address), the loan characteristics (value, validation, terms, am), financial state information. Today “scoring” crediting is used for it. The sense of this way is that each aspect of a client’s solvency has the real value. The total points’ sum- is the payment capacity of a borrower. Very question has the maximum point which is the highest for such aspect as professional status and the lowest for the age. Pay capacity estimation according to scoring system is impersonal. So the whole process does consist of two main blocks:

• Client’s solvency estimation system, based on the experts’ analyses of the crediting practicality
• Points estimation (score crediting methods)

Still bank do not limit themselves with the scoring system they also pay attention to detailed information, which may include the following aspects:

• Appearance – manners, frankness, age, marriage status, family duties, hobby, positions
• Education
• Qualification
• Physical conditions – sports interests, chronic diseases
• Property – private property, personal debts, personal income, tax debts

Taking a loan the client should give the following documents (this list however varies
considerably):

• Passport
• The certificate from work
• Document proving incomes from the deposits in other banks and for value papers
• Credit claim application
• A third person’s pledge

In some cases it’s necessary to provide additional documents. For example to get a mortgage loan one should collect the building license and cost-sheet. The decisive point of the application form is however the person’s income. Bank has the right to check the information about the borrower’s annual income.

Mortgage Personal Loans Based on Income

Mortgage crediting is one of the main factors which makes house getting more accessible.

The borrower’s solvency estimation is the most difficult stage of housing crediting. Juridical person payment capacity seems to be easier for the amount of information which is enough to make conclusions on the credit practicality and the prospects of the borrower’s financial state development. The main criteria for the individual solvency is the determination of the risk level.

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The USA auto insurance includes 6 basic types

The fist 2 types seem to be the most important that’s why they are completely indispensable all over the country. This is the third-party liability insurance for either health or property damages caused in an accident. Each state sets the insurance coverage limits. In California for example the following indexes are conventional – 15/30/5 – this obligates a driver to have a policy with the minimum third-party liability insurance with a count for $15.000 if a person was hurt, $30.000 f more than one person were hurt and $5.000 for material damage coverage. In New-York and in Columbia the parameters are similar – 25/50/10, Norton auto insurance implies – 50/100/25.

With the minimal coverage sums as the result the cost of the policy itself is lower. For many people it gives a tempting opportunity to save money on the insurance operation. Still experts alert for such approach for these policies do not provide enough coverage in case of serous collisions. Jane Neagl, the Insurance Institute representative, thinks that the optimal indexes for the insurance coverage should be 100/300/50. It is explained in the following way – if the car owner with the minimal insurance coverage policy damage in New-York, for example, a “Mersedes 500” for $50.000 the insurance company will pay for the car repairing $10.000 according to the policy and the rest $40.000 the company will claim from the guilty in the judge court with all the consequences.

The third insurance type – is the personal defense in case of injury. It covers medical expenses and financial looses in the case of driver’s or his passengers’ terminal disability to work. This kind of policy is beneficial for those who have low, if any, medical insurance coverage.

The following 2 types of insurance are not obligatory in the USA. The fourth one is the insurance for the case of collision when the material damage caused to the car by its owner himself is covered. The fifth one is “the all-over insurance” which covers the damages caused by natural hazards – floods, earthquakes, and also in cases of a car being driven away. These 2 types of insurance imply repair expenses payment according to market prices which should be aid by the client due to the agreement with the insurance company.

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Employment benefits seem to be a present which everybody may afford buying to himself but getting it freely increases its special value

Still do not forget a famous proverb:” there are no free meals”. Some experts say that fringes coverage costs are lower than the profit they bring. Each of the three employers works out the motivating system for his staff. Having covered your insurance policy the employer may be sure about your health and as a result of your labour productivity and corporative moral.

All the compensations and privileges may be divided into 2 main parts:
• These necessary for successful work – business tool
• Benefits themselves

Those providing fully-featured work may include notebooks, cell-phone and sometimes a car which may either belong to the company or a person (in this case company pays all the expenses caused by operating). The fact that the boundary between benefits and business tool is rather vague should be admitted. Frequently the ministerial auto is refered to as a privilege but not a business tool.

Employment benefits are the indelible feature of corporative culture of any self-respecting company. They may comprise from 1/3 to the half of the salaries. The social package implies generally worker’s and his family members’ medical insurance (secured medical loans are also available), flexible timetable, sport activities and corporative events payment.

The social package may include various rewards and privileges which depend on the company status, its position on the market and corporative policy. Moreover it is determined by the employee position. Top-managers for sure do possess the greatest benefits.

Benefits “complement” implies efficient structuring and definition of all the privileges. So the employee is aware beforehand what advantages he may get.

Medical insurance is provided to the worker himself and for the members of his family he pays a half price though some companies are ready to cover the whole sum.

The main feature of American employment benefits is that they are available to the staff members of different qualifications – from the bottom to the top.

Free meals are provided as well. This may be either dinner in the office or monthly compensating payments.

Sport club is paid or the rate of 70%. As in the case with medical insurance companies constantly follow the rule – it’s better to be healthy and rich than poor and ill.

Real estate purchasing loans depend on the position occupied and the experience level. In the “Citybank” for example they are acceptable only to the higher managers.

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 Real Estate Loans -  Remedy or a Myth?Today the government does not solve the problem of citizens’ accommodation at the expenses of the budget and enterprises funds any more. Real estate has become very expensive and according to average family income almost the solution is a mortgage. Still it’s possible only if the government undertakes the commitment to forcefully support people in finance relation and provides various privileges mechanisms. What’s mortgage over real estate actually is?Mortgage is a secured over a house loan when the pledge - which is the base of the loan – is not turned over to the creditor (commercial banks, mortgage banks, federal or regional government), but remains with the debtor. A sale ban is imposed on the pledge real estate until the loan is paid off completely.

Mortgage credit is a long-term credit over the following property:
 • Land
 • Industrial premises with the land
 • Dwelling buildings with the land
 • Apartments

The list of the main documents to give to the bank officer:

 • Property ownership certificate
 • Constitutive document – the base for ownership (agreement of purchase and sale, exchange, gift, the protocol of auction sale)
 • The floor plan of the building and the rating plate
 • The document constituting the ownership of the patch of land: ownership certificate (permanent usage certificate, rental agreement)
 • Land patch plan with the cadastral number
 • Local administration resolution - the base for the ownership certificate.
 • Tax payment certificate, the document which will confirm that there is no land tax debt.
 • The real estate price certificate
 • For the physical person: in case the pledge item is the common property – the wife/husband agreement singed by a notary.

This is only the fundamental part of the required documents. Any mortgage bank has the credit official registration directions and may ask for some additional documents and certificates, within these directions. And unfortunately there is no guarantee that the bank will be completely satisfied with the type of the pledge and its juridical registration.

The number of problems to be solved:

 • Not all the commercial banks take real estate as a pledge
 • Not all give long-term real estate loans
 • Not all accept the only dwelling you posses and live in
 • The real estate pledge price may not be sufficient to cover the expenses of the bank

All the expenses which accompany crediting (the pledge research, your financial state analysis, certificates, loan account, and etc.) together with high rates will comprise the sum almost equal to this of the mortgage itself.  
 

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Credit card is the most convenient way to get money wherever you are – either at home or abroad. This is also a stable warranty that you may buy everything you want at the very moment.

You won’t need to wait for the salary or borrow money from any one – financial freedom and independence are our best friends.

The Terms
Generally the terms of official registration of a credit card are rather simple in any bank – you should have a permanent work and stable income. To receive a card you will have to fill an application form in any branch of the bank you’ve chosen. The available credit limit you will know at once and in several days will become a credit card owner.

You may use any sum within the credit limit which is a renewable one – after the credit card debt repayment your account increases according to the sum pay off. And the rates are added on only according to the real sum you used.

You may also choose an option of credit card debt repayment grace period. The terms of operating differ only in the period of repayment, rates and the process of official registration are the same.

How to pay off a credit card debt

1. General conditions
 The credit card debt usually consists of two parts – credit debt and rates for the card usage. The credit card debt may be paid off in any time within the credit treaty validation. The rates are charged monthly and are to pay off during the month. In case of the inopportune repayment the Holder is charged with the fines and the credit card itself is blocked.

Paying off the debt the Holder should remember that the money go to compensate the fine first of all. To find out a credit card debt you may merely call to the office any time.

2. Grace period
The crediting on preferential terms implies the absence of the rates. The validating period of free credit depends on the time of the purchase and comes up to 50 days.

If the client does not pay off the debt in time then the rates are added according to conventional rules for the whole debt sum since the time it came into being.

The monthly payment consists of:
 •  Particular percentage for credit debt according to the state on the last working day ultimo.
 •  The whole rates sum charged for the past month

Remember that in case you loose your credit card you should get in touch with the bank officer by the phone at any time and to block your card.
  

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