Archive March 26, 2019

Loan capacity sets the limit for borrowers wishing to use a credit. This is the debt capacity, which is the maximum monthly amount a person is able to repay based on expenses and income.

Borrowing capacity is a key element of the funding file. Before you take out a loan, it is important to make sure that you have enough resources to continue to live properly during repayment.

You have to calculate your loan capacity

Loan capacity implies that repayments should not exceed a threshold of approximately 33% of household income. The calculation of borrowing capacity is a precautionary measure that must be taken by the borrower before committing. But the lending institution must also ensure the credit capacity of the borrower. For this, he will analyze various criteria that will determine the possibility of subscribing the credit. The first of these is the seniority in the profession: in fact, to measure the borrowing capacity, the lending institution will look at the duration of occupation of the same function within one or more companies.

• Real estate borrowing capacity
• Mortgage loan capacity
• Loan capacity calculation
• Borrowing capacity with contribution

This assessment will enable him to judge the professional situation of the borrower. Financial institutions generally apply for an indefinite duration contract (CDI). Also taken into account in the calculation of borrowing capacity , financial behavior; it is an analysis of statements of accounts over a period of several months (at least three) to define the relationship with the money of the borrower.

Ensure the loan capacity guarantee

The presence of savings and the ability to meet one’s expenses are directly relevant to the calculation of loan capacity . For example, a home that fails to pay a rent of 700 euros per month will probably be denied a loan whose monthly repayment would amount to 900 euros; However, if this same household has savings of 500 euros per month, its capacity for mortgage is redefined. To guarantee its credit capacity, the amount of this savings, added to other income, must therefore be greater than the amount to be repaid.

Many people today apply for a loan. Some decide to buy a house to start a family, others simply want to deal with an unexpected day-to-day life such as replacing a car. Two different amounts for two different types of loans.

Therefore, the repayment of a loan depends on several criteria, the total amount borrowed will inevitably affect the monthly repayments.

Find out why the repayment of a loan is not the same depending on the amount borrowed.

Repayment of a loan over time

The term of the loan

The repayment of a loan will also vary according to the temporal dimension of the latter. If you have a loan repayable over a period of two years, your monthly payments will be spread over this period. They will be different if you opt for a repayment period of one year.

Repayment periodicity

A second time factor is included in the repayment of a loan. This is the periodicity of the repayment. This factor concerns the frequency with which you will repay your loan. You can choose a monthly, bi-monthly, semi-annual or annual period depending on the type of loan and the financial institution or financial institution with which you do business.

Repayment of a loan based on the rate

The choice of the fixed rate

The amount of repayment of a loan depends on the rate chosen. A fixed rate is a security because the percentage is defined in the contract and will never be changed. You can therefore know in advance the exact amount to be reimbursed and accurately plan the refund. This rate is very frequently used for personal loans. It is also possible to make the choice of progressive fixed interest. This type of rate will not increase interest, it is the monthly payments that will be gradually increasing.

The choice of variable rate

The variable rate changes every year. It makes it possible to benefit from the fluctuations of the market which can be interesting in case of fall. This can also avoid being penalized in case of early repayment. This is a rate sometimes used for home loans.

The only negative is that it prevents the borrower from having the full cost of his credit.

Repayment of a loan varies according to several criteria

The refundable amount will therefore not be identical depending on the total value of the loan. It will vary according to several criteria: the value, the term, the periodicity of monthly payments and of course the type of rate chosen. It is therefore important to analyze the need for money before making a loan. The goal is to know in advance if it will be possible to repay each monthly payment without any delay or difficulty.

If you wish to apply for a loan, do not hesitate to contact a specialized agency for more information.

A difficult end of the month? An endless debt? A particular desire? You may have already tightened your belt from a financial point of view? It is not so serious, financial contingencies can happen at any time and we are aware of it. That’s why, NCR Loans gives you the opportunity to carry out micro-loans to meet your needs quickly and without a credit check. Find out what micro-loans are and our advice if you want to make a micro-loan., at home.

What is a micro-loan?

The micro-loan is a loan service without a credit check, allowing you to borrow small amounts and for short periods. They have the main function of filling an imperative financial need. For example, to pay a bill on time, avoid bad checks or meet an urgent need such as medical bills. They are also a great way to get a start-up fund for launching a company because they can be acquired quickly and with no down payment.

The micro-loan system is quite common in developed countries because it encourages activity and the creation of local wealth. Indeed, this form of loan solicits the micro-projects of local businesses, which leads to an economic path that is often favorable for the country concerned. Micro-loans also contribute to the fight against banking exclusion or discrimination. Indeed, they do not necessarily have to use a credit survey (the rate of the credit rating is not taken into account) for the loan to be issued. However, to benefit from this type of loan, one is asked to have a job and not to be in a situation of bankruptcy in order to be able to repay the loan correctly.

How to apply for a micro loan?

From now on, with the evolution of technologies, it is no longer necessary to travel to apply for a loan of this size. The application is easy and fast, the latter can be done via the Internet form of a form to fill. Said application is divided into several parts that it is necessary to inform in order to be granted the micro-loan. The request often uses information such as: your basic information, your personal information, your employment information, as well as your banking information. After collecting all of this information, the lending institution will determine whether or not you qualify for the requested loan. Theoretically, no cash charge should be disbursed in advance for obtaining a micro loan.

As you will have understood, the micro-loan is the most suitable solution to meet an urgent need, and this, whatever the reason. Although very easy to access, this type of immediate money loan uses certain requirements for the application to be approved. For any additional information, please contact by email or telephone with one of our advisors. The entire NCR Loans team will be pleased to answer your questions.