Pay nothing – what to do?

So, you know nothing about the upcoming global financial crisis, took out a bank loan to purchase: apartments, cars, washing machines, telephones, a denture to Tiffany’s – this is not so important.

But suddenly:
You fired;
Your revenues have fallen so much that is barely enough for a family.

In short, pay regular bills coming nothing.

What?
Strikes on the run from just should not. And forgetting that you told the bank’s employees in the processing of a loan, and extremely carefully read the loan agreement. If for you it is difficult to contact an attorney. Thus, you’ll know exactly what you are fraught with late payments.

Let’s look at a few examples:
Car
In most cases, the subject of the pledge in favor autocredit car . Vehicle Title is held by the bank until the full repayment of the debt. The deposit acts as insurance for the bank, that is, to a large extent guarantee the return of spent funds. And if you become insolvent, the bank simply will select a car.

But take something you do not to pay the bank. What can be done, if you believe that the financial problems at any given time?

- Write a letter to the leadership of the bank where the need to provide reasons for your problems and ask for deferment of payment of the loan. In this case, the mere fact that you are not trying to equivocate, and applying to a lender for assistance, is playing in your favor. And also says that you do not belong to bad people, and strive to deceive gullible bank.

- If the bank went to meet you (and it is quite likely), you just have to urgently address their financial issues. But the bank may refuse. And in this case, get ready for what you counted on the full program.

- And here is the time to think about this, the most humane in the world court.

Fear should not be – no one you can not eat. Also, do not at the meeting to irritate the judge remarks like: “I will not.”, “This is outrageous!” I.t.p. Honestly, and calmly explain the essence of the situation – “… paid regularly, not shirked, problems, addressed to the leadership for help – denied. And all.

Rather, the court will take pity on the unfortunate borrower, and reduce the size of the penalty. But he can not reduce the amount of the overdue payment – this is your voluntary commitment. If you want to gain time, or court decision is not in your favor, you can appeal his decision in a higher court.

Among other things, the legislation provides for deferral or installment of execution of the court ( p.1. Art. 203 HPA RF ). And there is the possibility for some time nothing at all to the bank not to pay.

Mortgage
The peculiarity of this type of loan is that the subject of the loan (real estate), always acts as a mortgage bank. With all the attendant.

Therefore, in the first place it is recommended to resolve all the points, without waiting for a subpoena. By the way, if your dialogue with the bank to nothing brought, the court, strangely enough, can help you.

The current law “On mortgage”, contains a rather interesting situation, which states that if the violation suffered slightly, and the amount of loss is not commensurate with the total value of the object, then the satisfaction of penalty may be denied.

An exception may be if you regularly violate the terms of the contract. Given this fact, and that the court often goes to meet the borrower, the chance to regain their property is quite good.

Especially if the “Object collateral – the only place of residence of the borrower.” Of course, this does not relieve you of the commitments, but also provides an opportunity to gain time to solve financial problems.

With regard to consumer loans, the system address is almost identical to that described above all. In the case of justifiable reasons, the court might listen to your request, and postpone the execution of penalty of up to one year.

Of course, if you yourself decide all the issues with the bank.

With this decision, half of the cases you have already done, the other half will make INDEX-BANK Credit Agricole Group with the help of a mortgage loan.

Credit for purchase of apartments and private homes:

1. Proper shelter you receive today, and half of its value will be paid gradually within 15 years;
2. You do not have to pay any monthly fees or other hidden charges, only 1% of the ad hoc committee of the loan amount;
3. The contribution of personal assets from 50% of the cost of your chosen accommodation

What are the advantages of credit from INDEX-BANK?

1. Early repayment is possible without penalty;
2. We consider both confirmed and unconfirmed income, total income of the spouses, as well as any additional income;
3. The interest rate on the loan – floating;
4. We provide a preliminary decision on the loan in the form of a letter of guarantee for documenting income and assets when you have not yet decided on the specific object of purchase.

Important role in such a fast “car ownership” of the population has played (and continues to play) car loans. We say more – almost every third car, which travels about the Russian expanses, borrow.

Recently, in connection with the global financial crisis, the Russian market lending does not develop so rapidly. However, banks today are not inclined to complain about the lack of customers – who want to get brand new cars for several days until enough.

But the real boom in auto loans observed in the pre-crisis time – from 2006 to 2008. For example, in 2006, car loans different banks of Russia on the amount of 8.5 billion dollars. What are the loan programs? They can be divided into two types – a classic credit, and express loan. We consider each of them in detail.

Getting a “classical” credit is as follows. The client collects the required documents, and provides it to the bank together with the application for a loan. If the bank makes a positive verdict (it takes from 3 to 10 days), the client makes its first contribution – no less than 10% of the value of the car. The loan has a repayment term of up to 5 years, the interest rate varies from 9% to 14% per annum. The amount of the loan, usually paid equal shares within a specified period.

As for the “Express Loan”, the essence of issues very name. This means that your application is considered by the Bank as soon as possible. However, such loans are not issued more than three years, while interest rates on them considerably higher – up to 18% per annum. Besides all this, banks are placing increased demands on the recipient – the chances, in comparison with “classical” credit, less than a few times.

Most banks add to the terms of the contract for the express loan hidden charges. So if you have decided on such a loan, be prepared for the fact that the rate of pay.

Which loan is suitable for you? The classic version of the chosen people, who are carefully weighed, and not willing to pay extra money just for something to get the car faster. They are more attracted by the stability and clarity of the conditions of “classical” contract. However, life is everything, and people are all different, too – and if you can not or do not like to wait and are willing to pay for their desire – express a loan is what you need.

In fact, car loans – a loan against property, in the role played by the car.
The scheme is simple – showroom subscribes to the client account, and bank transfers through the showroom on the desired amount. After this car goes to the client’s property. At the same time a car is made as collateral on the loan. And, in case of nonpayment of the required amount, the bank will simply pick up the car in arrears.

A prerequisite for obtaining credit is the design of an insurance policy – compulsory motor TPL insurance and helmets. Therefore, the customer shall insure the vehicle from the consequences of accidents or theft. Before the last installment payments on the loan, a car registration certificate is in the bank that issued the loan.

What is the future for car loans? People quickly get used to the good. All items that have recently been available only to wealthy people – dear consumer, audio and video equipment, cars – are now available to anyone with a stable income. Today in the credit can be obtained almost everything – from the CD to the mansion. And the cars here – not the exception.

Banks are fighting for every customer, and continue to offer loans to all the best conditions – lower interest rates and the initial contributions, increasing maturity. And, most likely, lending in general, and auto loans in particular, will continue to thrive both in Russia and CIS countries.

Bankers have identified two of them – first, to ensure that the company received a loan, its activities should be to a certain extent, “transparent”. For entrepreneurs this is extremely disadvantageous step, as they lose their competitive advantage, “out of the shadows. Therefore, the low legitimacy of business – one reason for denying credit. The second reason – low financial literacy of entrepreneurs. Simply put, not all have an idea of exactly how you can use these in the form of the loan funds.

Sami entrepreneurs have their own opinion. As the statistics, about 15% of small and medium-sized businesses do not take out loans because of high interest rates. Which, incidentally, is quite difficult to determine. Too many factors that affect the interest rate for a particular enterprise – and credit instruments, and the period for which issued the credit, currency, the loan amount. All this affects the interest rate.

Another reason, according to entrepreneurs – the requirements of banks to grant bail. And a third of executives surveyed did not resort to credit services because of the need for collateral. After all, the assets of small and medium-sized businesses typically have a fairly small cost. Of course, there, and unsecured credit facilities. However, in this case, the loan amount is typically less than 500-700 000. This is a very modest sum, even for small businesses that here we talk about average.

According to experts, 80% of banks have their own programs for lending to small and medium businesses. However, most programs have one common and very significant drawback – lack of a unified system of evaluation of entrepreneurs. Such a system has long been successfully operating in the U.S.. There she is called “scoring”. This system will filter out all the subjective factors, and quickly determine the feasibility of a loan to a particular company. In Russia, this analysis is a man that at times makes it difficult to objectively assess the company.

One of the necessary conditions that set all the banks – the company must be registered in the region of the bank for at least six months. No less important condition – the complete absence of outstanding loans already made. And finally, a permanent and stable income – an indicator of the success of the enterprise. The latter criterion, most banks attaches primary importance, because the presence of income – is a guarantee of return of money.

Such factors as low legitimacy of the business, in most cases, can cause a “life” refusal to provide credit services. Most banks offer or to contact them after a while again, or given credit, but on a lesser amount. Adversely affect the verdict of the bank can a bad credit history of the enterprise. According to the bankers themselves, entrepreneurs with bad credit history becomes less and less – people understand that adherence to “financial discipline” could become a guarantor for loans in the future.

Summarizing all the above, we can say that the biggest chances of getting a loan from the company, which operates in a particular region of at least six months, generating a steady income to the owner, and has prospects for development. The very same system of lending to small and medium business in Russia requires improved in several directions.

First of all – in the evaluation system of enterprises. It is also necessary to develop new loan programs, lower interest rates, improve the conditions of a loan, etc. Despite the fact that the volume of lending are growing, experts say, they can achieve in lending Western countries no less than 15 years.

The purpose of the fund is precisely the promotion of the government’s housing policy. And one of the policy directions it – is the commercial lending and budget for citizens aged 35 let.Chtoby find out what it is, I sought the advice of the Odessa regional administration of State Fund.

The mechanism of commercial lending lies in the fact that young people take a loan for building or purchasing housing in the bank and fund partially offsets the borrower the amount spent on interest payments for use of commercial credit. That is, if you took a bank loan for an apartment , say, by 13 percent per annum for twenty years, during the first five fund will pay you compensation equivalent to one NBU’s discount rate, which currently stands at eight percent.

When the budget credits young people have the opportunity to obtain long-term (up to 30 years) loan at three percent per annum. Also in this case, granted benefits to citizens who have one child – they get an interest-free loan for an apartment , two children – they state “forgives” 25 percent of the loan amount, three children – paid off 50 percent.

Looks tempting, does not it? Only when I had heard all this, my mind immediately unconsciously originated a question: if everything is so good and affordable, why are only some of my acquaintances several young families with more than a year crammed in rented apartments? Without leaving the bank operates, where regional administration fund, meet with the young couple, who also came for advice, although not at first. I’m interested in what they think of the fund.

- In theory the program, of course, is good, but in practice more. Well, firstly, to a credit system actually worked, to the permanent funding of the state, and with this in our country’s difficulties. In addition, start with commercial lending. The program provides compensation for the borrower eight per cent a year, but this percentage you will receive only if the cost of one square meter of apartment you bought will not exceed USD 3,300, while such prices in Odessa (and in many other cities – editorial .) simply does not exist. And then, we must remember that, if a fund suddenly have “financial difficulties” (of course, in the management of the possibility of such a situation, deny), the bank will not take this into consideration and you have to pay yourself.

The first condition for both budgetary and commercial loans – a stay at kvartuchete a hunger strike. , But at kvartuchet put in, if for each family member had only about seven square meters of housing. The budget is practically impossible to obtain credit. Distributing it on a ranking system. Based on questionnaires filed wishing to become registered,

Candidates award points, and creates a rating. The highest number of points available for academic degrees and if your priority in the queue for an apartment. For a child is charged only one point. In principle, this ranking makes sense, because he, in theory, should encourage borrowers. The trouble is that the queue is not moving.
Asked whether they take credit?

- We’ll be waiting for replenishment of the family. Of course, very much like to acquire its own apartment, though small. For more than one month, learn about loans in the various Banks – dearly, heard of the fund, hoping that this – our chance. But the prices are so high that even the minimum landscape in a month should be given to the bank about $ 500. Husband – system administrator, until recently, as a young professional with no experience, received only 150 dollars, now – 300, over time it has the prospect of earning 500 but in my six hundred UAH in the school as an accountant-cashier – it is not particular difference. Naturally, such a loan, we simply have not been able, as I think, and many other young families.
Finally decided to ask the consultant for regional management as soon as we can expect a loan after filing?

- Commercial loans, if all documents are in order, you can arrange for several months. But the grace – to be ready to wait. For example, over the past year was not given any. Today in the rating of the Odessa region consists of more than 3 thousand people. And in just six years issued about 70 such credits.

On this I think I’ll finish my story about the fund and on what assistance the state is trying to “help young people. The findings here, in my opinion, suggest themselves, but let them all as everyone makes for himself …