Best payday loans Indiana

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The offer of debt consolidation loans on our website is very similar to that of personal loans with the only difference that you can find products with prices and / or specific conditions reserved for loans for this particular purpose. Therefore, for general characteristics, refer to the personal loans section. The peculiar characteristic of the debt consolidation loan is that it is used to consolidate more debts outstanding in a single loan and if possible and desired to obtain additional liquidity: the process of preliminary investigation and assessment of the feasibility of the transaction is therefore rather complex as it is it is necessary to obtain the documentation of the loans to be settled, in particular the related extinction accounts, which are the documents that certify the amount to be paid to the Financial Institution which expires to free the applicant from the obligations towards him (the extinct accounts allow to calculate the amount to be paid out for each loan activated).

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Generally, the granting of a debt consolidation loan is not subject to the presentation of collateral (ie pledge or mortgage rights on assets owned by the applicant). However, in some cases, in order to limit the risk of insolvency, the lender institutions submit to the applicant a contract that provides for the payment of installments, or a single bill, able to guarantee a part or the entire amount paid . The most widespread form of guarantee, however, is the signature of a co-obligor or of a third guarantor, who guarantees the successful completion of the operation. This is a rather common request, in the presence of particular conditions (such as an applicant with a recent working age or a particularly large amount of the consolidation loan or even some small payment problem with loans that we intend to consolidate). In any case, it is not possible to establish rules that are valid a priori as the request for guarantees is at the discretion of the individual Institute, which decides on a case-by-case basis, depending on the risk profile of the transaction and the individual applicant.

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The law establishes that a car loan contract must contain the following elements:

  • data and contacts of the lender and the credit intermediary (if any)
  • the interest rate charged;
  • any other price and condition charged, including higher charges in case of default;
  • the amount and terms of the loan;
  • the number, amounts and maturity of the individual installments;
  • the annual percentage rate (APR);
  • the details of the analytical conditions according to which the AERmay be modified, if necessary;
  • the amount and the reason for the charges that are excluded from the calculation of the APR;
  • any guarantees required;
  • any optional insurance coverage and not included in the calculation of the APR.

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The interruption of the reimbursement of the financing implies the immediate non-compliance with the financing Institute and the risk of unpleasant consequences:

  • the interest due would be increased, with the application of a default;
  • there is the risk that your name will be included in the list of late payers and / or reported to the credit protection bodies (the Central Risk), which will share information with the entire banking and financial system. The result will be the deterioration of the creditworthiness of the customer and a consequent greater difficulty in obtaining credit in the future.

Failure to promptly pay even one installment authorizes the lender to unilaterally terminate the contract. The customer will be required to pay all bank and protest fees as well as all charges incurred by the Institute to recover the sums due, as well as a possible penalty.

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The legislation states that it is always possible to extinguish the loan in advance of the agreed term. The customer who chooses to exercise this option will be required to repay the remaining principal still due, plus a penalty which, by law, can not exceed 1% of the amount financed. If the contract does not specify the amount of the residual capital after each repayment installment, the sum of the current value of all the installments not yet due at the date of the early repayment shall be considered as residual capital.

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Below we illustrate in a schematic way some specific evaluation criteria of the debt consolidation loan.

Risk policies Each Institute applies its own risk policy in assessing requests, based on the statistical data it has (credit scoring). These data constitute the instrument that allows the Institute to keep insolvencies below a certain level.

Income level Acceptance of requests is normally also subject to assessment of the applicant’s income level and to the relationship between the latter and any repayment installments (also considering any installments of other loans that the applicant should not pay off) the consolidation loan).

Creditworthiness Lastly, the creditworthiness of the applicant is of great importance. It is important to underline that this evaluation has no “moral” meaning. The Institutes limit themselves to estimating the level of risk associated with each request, also on the basis of the credit reports provided by the Central Risks. If the credit history of the applicant has some “flaws” (delays in repayments of previous loans, unpaid, etc.) the probability that the request will be accepted is obviously lower. In some of these cases, a viable alternative is constituted by the assignment of the fifth, a solution which, by offering the appropriate guarantees to the financing institution, allows for the adoption of more flexible evaluation criteria.

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When choosing between different funding offers it is good to consider the total cost of each, without limiting the evaluation of the only monthly payment. However, this is sometimes not an easy task, since the items of expenditure of a loan can be numerous (amount disbursed, interest, accessory charges, initial costs, insurance costs) and they are not easily measurable immediately. In general, the elements that should be considered before signing a loan contract are:

ANR (Nominal Annual Rate)

The ANR represents the interest rate, expressed as a percentage and on an annual basis, applied to the capital financed (sometimes gross of any insurance costs or costs of preliminary investigation). It is used to calculate, starting from the amount financed and the duration of the loan, the portion of interest that will be paid to the lender and which, added to the capital quota, will determine the repayment installment.

TAEG (Annual Effective Annual Rate)

The AERis a measure, expressed in percentage terms, with two decimal places and on an annual basis, of the total cost of the loan. Unlike the TAN, the AER is inclusive of any ancillary charges, such as costs of investigation and insurance costs, which are charged to the customer. However, the American legislation allows, under certain conditions, a certain discretion, excluding or including in the calculation of the AER some items: insurance costs, for example, if optional, can be excluded from the calculation. Pay attention and carefully consider your total expenses, analyzing each individual item of the offer that is offered to you from time to time.

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