Archive March 2019

Loans at Expiration, without monthly and short-term installments

 

Which companies offer loans to expiration in Spain? Because they do it, what advantages do they have? If you have in mind to request one of these credits without monthly fee in Anne Shirley we show you the advantages of this financing. Being on the other hand a type of credit which is limited to a few situations.

The due credits do not serve any financial need, much less being what we are going to see. Most of the time it is processed when the clients have in mind to return the money with the sale of some real estate and in the short term. That is, when the return is intended to be done at once, with a sale, the collection of money, inheritance ….

The refund is presented very differently from what we would see in the signing of a loan with monthly installments. By the way, this financing we will see especially in private equity mortgages. 

These loans are usually processed when a loan is sought for a period of time, usually at a maximum of 1 year. Private equity companies have adapted to this need by offering credits of this type WITHOUT MONTHLY FEE.

How do the loans to expiration work?

How do the loans to expiration work?

These are credits where the return of the credit is raised with a deadline, there being no monthly installments. Let’s say that a client signs a loan of this type for 1 year.

If you sign it on January 1, 2017 you will have until January 1, 2019 to make the refund of the credit. The refund will not be done by paying monthly installments but will do so at once. That does not have to be the last date, you can do it much sooner. Although he has 12 months to return the money for power can make the return when it seems.

In the liquidity loan to advantage, for example, this return is usually made when the property is sold. If it takes 4 months to sell the property even if the client has signed up to 12 months it will return it in 4. Do you understand?

Characteristics of loans due and without installments

Characteristics of loans due and without installments

Even though we are private equity loans, we can not deny that they have different characteristics than those of quotas.

  1. The refund is made suddenly, not little by little.
  2. There are no monthly fees to pay since the refund is raised differently.
  3. The interest rates of these mortgage loans tend to be better than the rates of interest.

Not because the refund is due but because they are short-term loans.

  1. The financiers that offer these loans usually do this operation to 1 year with option of renewal to another.
  2. This type of credit is only signed when the return is very clear and always thinking in a short time.

TAE of loans of this type

We at Anne Shirley can not speak for others but we usually rate them between 9.95% and 12% per year. Depending on the operation, it may have one cost or another. And although in monthly installment it is also usually cheap for private capital at maturity it will always be more.

Financial companies are interested in making short-term loans that are not medium or long term. Because for them the signing of a loan is an investment. And if they can choose they will always prefer to do it short so they can lend their capital a greater number of times.

conclusion

As a way to get money through private loans, maturing loans can be the ideal financing. Whenever you have an idea to cancel it in 1 year or less. Because although the renewal option is always given with the payment of interest, this is not how it has to be done.