Lite Bank – Loan Consolidation

In practice, consolidation or consolidation of loans means repayment of existing obligations by a new loan. The purpose is to get more favorable repayment terms and also a better overview of regular monthly repayments. Companies that offer this product include Lite Bank. Under what conditions does LB provide the consolidation of loans and what are the advantages and disadvantages expected? More exposition at http://www.gracemethodistaustin.org/online-payday-loan-direct-lenders-only-search-real-payday-loans-direct-lender/

Lite Bank consolidates its loans under the so-called Optimal Loan, which may be up to USD 2,500,000. It brings the possibility of reducing repayments and interest, optional repayment amount and zero credit management fees, changes in the contract and early repayment.

It is possible to combine loans, non-bank loans, overdrafts and credit card debt.

Consolidation of LB loans – basic parameters:

  • Consolidation amount: USD 30,000 – 2,500,000
  • Need to prove income: yes
  • Checking the debtor register: yes
  • Application fee: free of charge
  • Loan management fee: free of charge
  • Maturity: 12 – 120 months
  • Early repayment: free
  • APR: max 13.68%

Lite Bank provides consolidation to applicants who have reached the age of 18, have a regular income and have two identity documents.

All information relating to a specific loan is available in the loan agreement or in the Major Bank internet banking and Mobile Banking.

Advantages and disadvantages of LB loan consolidation

Advantages and disadvantages of LB loan consolidation

The merger of loans from Lite Bank has many advantages. These include, for example, the option to choose a repayment date according to your own needs, zero fees or minimal administrative requirements for clients.

Benefits

  • Lite Bank provides consolidation free of charge for arranging and maintaining a loan
  • The optimal loan can be arranged at branches and online from the comfort of home
  • Advantageous insurance of the ability to repay in case of unexpected situations
  • The client can set the repayment date himself
  • There is no need to cancel existing loans, LB will handle the merger
  • Opportunity to get extra money

Disadvantages

  • Lite Bank’s consolidation is intended exclusively for non-business loans
  • The condition is a regular income

The optimal loan is only available to clients with regular income, which must be documented together with all consolidated credit agreements during the application.

Thanks to the consolidation of loans from Lite Bank, you can save on interest and improve your overview of regular monthly payments.

Loan Consolidation Lite Bank – loan calculator, example

Loan Consolidation Lite Bank - loan calculator, example

Applicants for the consolidation of loans can calculate in advance how much they will save through consolidation on the company’s website. It is always true that the more loans are transferred to LB, the better the interest rate will be. You only need to enter credit data and the required repayment period in the calculator.

  • Loan Consolidation Lite Bank – calculator

Example: If the amount of consolidation is USD 100,000 and the maturity is 4 years, the interest rate will be 5.9% pa, APR 6.06% and the monthly installment amount will be USD 2,389. In this case, the client pays the total amount of USD 112,353.

Payment protection insurance

Payment protection insurance

For those interested in consolidation, Lite Bank also offers insurance in the event of problems with timely repayment, which is available in four variants.

  • OPTION A: Insurance of death and full disability (client age 18 to 45 years) – 0.025% monthly of the sum insured
  • OPTION B: Insurance of death and full disability (client age 46 to 60 years) – 0.045% monthly of the sum insured
  • OPTION C: Insurance of death, full disability, and incapacity for work – 0.025% of the sum insured + 0.01% of the insured loan
  • OPTION D: Insurance of death, full disability, incapacity for work and loss of employment – 0.025% of the sum insured + 0.02% of the insured loan

In the event of death or full disability, the Bank will pay the entire debt or its insured part. If the client loses his job, repayment starts from the third month.

Consolidation and repayment insurance can be arranged at Lite Bank branches or by calling. Alternatively, the nearest LB branch can be easily found on the company ‘s website.

Credit without co – applicant | When it can be taken out?

Nowadays, loans are offered on a wide variety of terms. Not only that the loan amount, term and type of loan can be very variable. The question of whether a loan should be taken out without a co-applicant or rather with a co-applicant can also be answered individually. This always depends on the requirements that the borrower brings with it and the type of loan that is to be taken out.

Most consumers prefer a co-applicant loan. In contrast to the lending banks. You like to see it again when the loan is secured by a co-applicant so that the risk of default drops to the lowest possible level. Especially when a married borrower requests a loan, it is urged that it be taken up together with the spouse. However, the banks have no chance of enforcing their desire to borrow together. However, you can refuse the loan if you believe that it is not sufficiently secured without the partner.

When can a loan be taken out without a co-applicant?

When can a loan be taken out without a co-applicant?

Many loans can be taken out without a second co-applicant. Small loans of all kinds and consumer loans would be a very good example of this. And even if the applicant’s creditworthiness is particularly good, there is hardly any reason for the banks to only grant the loan with a co-applicant. However, the decision is ultimately always up to the banks. If this does not work in the borrower’s favor, the borrower must see how he can improve it. Because the banks and savings banks will not deviate from their course and will not reconsider their decision.

If spouses should apply for a loan together, the banks and savings banks will refer to this in advance. Each borrower can then decide whether they want it or not. If he decides to do so, both partners sign the loan. If he decides against this, he must look for loan offers that do not include this clause. Since the selection of loans is very large, it should not pose any problems to find loan offers that can be taken up completely independently and without support.

When will it be difficult to take out a loan without a co-applicant?

When will it be difficult to take out a loan without a co-applicant?

It looks a little different if the creditworthiness is not sufficient to take out a loan without a co-applicant. Then you will bite the bullet and have to accept the additional support. Otherwise, without this, there will be no loan agreement.

The same applies to large loan amounts and loans with very long terms. The banks traditionally only award these if there are two applicants, since the risk of default would be too high for one applicant.

By the way: If you want to take out the loan on your own under all circumstances, you have to ensure that other collateral is available. Material collateral such as real estate, valuable jewelry or antiques could be helpful. On top of that, the credit request can be adjusted so that it is accepted even if there is only one applicant. Such as, for example, for small loan amounts or consumer loans that consider the consumer goods acquired as security.

Credit despite excessive overdraft facility

It is not always easy to keep your checking account in the black. Even if the income is high and regular, there are always unpredictable expenses that have to be paid. Be it a larger bill for a repair, an important new purchase or just a wish that has been cherished for a long time and is now finally to be put into practice.

If your own credit is not sufficient for this, you can use the overdraft facility. It is directly linked to the checking account as an on-demand credit and enables spontaneous purchases that go beyond your own budget without the need for a separate loan.

The disadvantages of the overdraft facility

The disadvantages of the overdraft facility

Unfortunately, this spontaneous availability of money also has a major disadvantage. The banks and savings banks let the use of the overdraft facility be paid very princely. The average effective interest rate for this is 11 to 12 percent. And this interest rate must be paid every month on the amount used from the overdraft facility. No wonder that many consumers find it difficult to compensate for the overdraft facility, since all money is “eaten up” by the interest. A credit in spite of excessive overdraft facilities could therefore be a good choice to get out of the overdraft facility and to steer financial matters back in a regulated manner.

What are the options for a loan despite excessive overdraft facilities?

What are the options for a loan despite excessive overdraft facilities?

It is always important to react quickly in order to keep the costs for the overdraft facility and its overdraft as low as possible. It is also important not to let the overdraft accumulate negatively in Credit Bureau, as this would make it very difficult to take out a loan despite overdrafting.

The easiest way to compensate is to take out an installment loan. It is not earmarked and can therefore be easily adapted. In addition, the interest rate is very low and well below the overdraft interest rate.

A consumer loan or other special loans, however, are not worthwhile. They are all earmarked and therefore not suitable for balancing the overdraft facility. In many cases, they also bring with them very firm repayment requirements that can only be adjusted to a limited extent to the situation of the borrower.

Where should the loan be taken despite excessive overdraft?

Where should the loan be taken despite excessive overdraft?

The “where” around taking out a loan despite an overdraft facility can only be clarified when it is known what traces the overdraft has already left. In general, however, the golden rule is that a loan despite excessive overdraft should never be taken out with the bank that provides the overdraft facility. She knows about the concerns and needs of the loan seeker and could take advantage of them. Mostly in the form of a higher effective interest rate, since the bank should not have an increased interest in the expensive overdraft facility being replaced. After all, the bank earns significantly more money from it than from a cheap installment loan.

Otherwise, you have to look at the requirements for taking out a loan despite excessive overdraft facilities. If the overdraft facility has not yet made itself felt in the Credit Bureau and is otherwise free of negative entries, a simple installment loan can be used, which can be applied for by means of a comparison from almost all banks. With a good credit rating, offers can be found that offer an effective interest rate of less than 3 percent. The amount of money that is really needed should always be included. If there are other financial construction sites in addition to the overdraft facility that need to be processed, these should also be included in the loan amount. The goal must always be that in the end there is only one creditor left, whom you can pay off with the help of small, constant monthly installments.

However, if the overdraft facility has already left its mark on the Credit Bureau, taking out a loan can be a little more difficult despite the overdraft facility. In such a case, we recommend adding a second borrower who can provide a simple installment loan with a good credit rating. If this is not possible, the loan from abroad or the personal loan remains. However, since both loan variants are accompanied by quite high interest rates, it can happen that rescheduling, i.e. replacing the overdraft facility with another loan, is not worthwhile. It is therefore necessary to look and calculate exactly what really makes sense in the end.