How to Borrow Money with a Bank Loan and Tips to Get a Loan Approved in USA Canada – Are you currently in need of additional capital, but feel proud to borrow from friends/relatives? Want to pawn or sell something but don't have any valuable assets?
If the answer is yes, then try to find a solution by applying for a capital loan to a financial institution, such as a bank or fintech. Applying for a loan to a bank/fintech is one of the best solutions for your financial problems.
In terms of ease of loan processing, fintech is superior to banks. However, if you are not careful in choosing a fintech, you can lose many times over. The reason is, the interest rates for fintech loans are quite large compared to banks.
For this reason, banks are often chosen by the public on the grounds that the interest is not too large and the loan tenor can be longer than fintech.
So, how do you borrow money from a bank so that it gets approved quickly? Come on, see the explanation below!
How to Borrow Money with a Bank Loan and Tips to Get a Loan Approved
Almost all banks have requirements that must be met by prospective debtors. This requirement is mandatory, if one of the points has not been met then the application process cannot be processed further.
Borrowing money online can be done by those who are 17 years old and have an identity card, we register through the website or money loan application with low to high interest rates.
You can borrow money to buy a house without collateral using borrow money app. Borrow money from cash applications, apart from without a guarantee we can use some of the money, it doesn't have to be all used.
Borrowing money application no credit check but the interest is very large, if you can manage it it's not a problem.
The following are general requirements that must be prepared before applying for a loan at the Bank, namely:
- Photocopy of ID Card, Marriage Certificate as proof of identity if already married
- Copy of salary slip
- Copy of TIN
- Photocopy of savings book
Note: If you take a loan with collateral, then prepare a document proof of ownership of the object that will be used as collateral. For example BPKB for motorized vehicles or house and land certificates.
Quick Loan Tips Approved by the Bank
After the files are prepared, pay attention to the following things so that loan applications are quickly approved, including:
1. Use Guarantee
In order for a loan application to be approved quickly, you should use collateral. Choose a guarantee/collateral that has a high selling value, at least the collateral value is the same as the nominal value to be borrowed.
The Bank will re-selection whether the collateral is eligible to be used as collateral or not. Because the item will be auctioned if the debtor is unable to complete the payment. The selection process is quite strict. In general, there are specific requirements regarding this collateral. Such as motor vehicles that are guaranteed the latest production, and so on.
2. Do not have a debt record with any financial institution
Usually the Bank will check the data of prospective debtors at Bank Checking. Does the prospective debtor have a bad/good credit score? Your credit score or credit history will show whether you have defaulted on a loan before. The credit score will be considered by the Bank.
3. Determine the loan tenor
The loan term is the length of the loan. If you choose a longer loan tenor, the loan installments will be much smaller but the interest paid will be higher. On the other hand, if you choose a short tenor, the monthly installment costs will be heavier.
Before determining the tenor, you should calculate the income per month. Make a loan plan carefully and carefully so as not to burden and cause default in the future.
4. Adjust the loan nominal to your needs and ability to pay
Be a wise debtor. That is, adjust the loan ceiling to your ability to pay. Apply for a loan with installments not exceeding 30% of your income. So the bank will judge you are still able to pay the debt.
If you take into account the loan ceiling carefully, it is likely that the application will be approved by the Bank.
5. Take advantage of Unsecured Credit offers
Some banks have unsecured credit services. This service is almost similar to fintech, but the interest offered is much lower. Take advantage of this service if you don't have a warranty.
That's info related to how to borrow money at a bank and 5 tips that can be tried so that the application is approved by the bank. Hopefully whatever is reviewed above can help and provide benefits. good luck
15 Cheap Ways to Buy a House
Want to know how to save to buy a house with a small salary? Why not? Many millennials are pessimistic about owning their own house because of the high price of the house. Every year, house prices always go up, even in the midst of an epidemic.
The difficulty of finding a job with a decent wage coupled with high mortgage interest rates is thought to be the reason why many people are hesitant to own a house, especially in Jakarta.
In fact, the millennial generation can still own a house. As long as you know how to save to buy a house with a salary of 5 million, 3 million, 2 million, or even 1 million. One option that can be considered is subsidized housing which is sold at a low price because it is subsidized by the government.
Not everyone has a big salary so they have to buy a house using a home savings program from the bank. Are you one of them? In order not to be curious, here's how to save money to buy a house with a salary of 1 million or 2 million that you can try.
1. Create a detailed financial plan
The first way to save a house quickly, you can create a detailed financial plan for every income and expense. To buy a house, you have to plan and take into account the budget needed to be able to buy a subsidized house or dream house.
Does the monthly income run out quickly or are there many unmet needs? With good planning and proper calculations, you can manage your finances wisely. Of course you will not be able to buy your dream home if you do not know how to save effectively and the desire to save money.
2. Join the mortgage program
The Home Ownership Credit Program (OCP) has indeed become a mainstay for low-income people to own a house. In fact, people can buy houses for cash. However, it is difficult to save money to buy a house in cash for those with incomes below $ 4 million.
OCP is a program from banks to customers in the form of credit facilities for the purchase or renovation of houses. You can choose two types of mortgage schemes, namely non-subsidized mortgages and subsidized mortgages. Non-subsidized mortgages are intended for the general public. Banks set the terms and interest rates. Meanwhile, subsidized mortgages are regulated by the government. Not everyone has the right to choose a subsidized mortgage and only a handful of people meet the government's requirements.
3. Set aside 30% of your income for a down payment on a house
How to save to buy a house with a small salary next, by meeting a down payment. In principle, a mortgage is a loan made by the bank for the purchase of your home. So you have to pay installments to the bank after paying a large down payment.
Usually the bank will charge a down payment of about 20-30% of the value of the sale of the house. Although the percentage looks small, the amount of money spent is not like that. For example, if you buy a house for $ 400 million, the down payment you have to pay ranges from 80 million to 120 million. The ideal mortgage installment is the total of all debt installments reaching 30 to 35 percent of total income.
One of the best ways to pay a down payment, by setting aside 30% of your income from now on. You can start saving from the beginning of the month to be more consistent. Do not save at the end of the month because it will make the value of your savings uncertain, sometimes large, often small.
4. Long tenor mortgage
One of the obstacles for the millennial generation when repaying a house is the ability to pay a small down payment and the ability to repay loans is also small. So what to do?
For those of you who are young and new to work, you certainly have the flexibility of a mortgage tenor. Please take credit in the long term. Usually banks set a period above the retirement age of 55 years as a limit that is not allowed to repay loans.
Now banks provide mortgage loans for a maximum period of 25 years. If you are under 30 years old, you can take advantage of the long tenor. Tenor considerations are important because a long tenor reduces the number of installments per month.
Isn't the longer the installment, the greater the interest expense? True, because the interest rate can be higher than the principal due to the long term of the loan. However, keep in mind that the value of land and buildings, especially in Greater Jakarta or other big cities, also increases every year with an average increase above the mortgage interest rate.
According to various financial planners, it is okay to owe assets whose value continues to increase. You will benefit from an increase in asset value that is greater than the credit interest that must be paid.
5. Calculate the desired house price and adjust it for inflation
When are you planning to buy a house? This year or two years from now? If you want to buy a house next year, you can estimate the price. Because house prices are increasing every year. So you have to calculate the house price by entering the inflation rate.
For example, you want to buy a house offered by a developer at a price of $500 million. If you intend to buy a house next year, the price will most likely go up. Assume the increase in house prices per year is 8 percent, meaning that the price of the house you are after has become $ 540 million next year. You can use the inflation calculators scattered around the internet to calculate the price of a house in the next year or so.
6. Determine a reasonable installment amount
If you have already paid the down payment for the purchase of a house, try to pay installments of no more than 30%. The goal is that you can meet your daily needs in addition to paying installments.
For example, your income is $ 4 million per month, ideally the installments are not more than $ 1.2 million per month. You can reduce your installment costs with a longer repayment period, for example 20 to 30 years in the future.
So even though you only have a salary of 3 million, you can still save to buy a house by choosing installments according to your ability.
7. Have two accounts
One of the reasons why many people have two accounts is to facilitate more specific household financial planning. For example, one account for children's education and the other for mortgage payments. Having two different accounts will make it easier for you to divide household expenses. In addition, it will be easier for you to stay away from temptations for inefficient interests.
8. Use autodebit system
Do you often have trouble saving at the beginning of the month? You can use the autodebit system so you don't have to worry about moving money from your payday account to your savings account. This is one way of saving money to buy a house with a small salary that is quite effective.
Remember, this savings should not be contested so that the down payment can be collected quickly. The key is to put money aside, not leave it.
9. Free from debt
Paying mortgages and down payments can be a burden for people with tight economies. It is better not to add other installments such as motor vehicles or cars because it will add to the burden.
In addition, usually the bank will also review your economic and credit conditions when applying for a mortgage. Mortgage applications can be rejected if you have a bad credit history.
10. Consider buying a subsidized house
The next way to save to buy a house with a salary of 1 million is to choose a house with an affordable price. Even so, do not choose a house that is too cheap at the expense of quality and location. Try to find a middle ground between price and quality.
You can consider subsidized housing which is a government project for low-income people. The average price of this house is around $ 120 million in Bekasi and $140 million in Jakarta. Most of the subsidized houses have types of 25, 29 to 36 m2 with locations near shopping centers, schools, main roads, and other landmarks.
11. Start investing
Investing can not only be done by the upper class, but also the middle and lower classes. You can try investing with minimal risk, such as money markets and income mutual funds if you don't have enough savings to cover your down payment. You can also invest in gold if you want a stable value.
One reason to consider investing while saving a down payment on a home is so that you have an emergency fund in case the unexpected happens. Because most of your savings will be used for down payments and home installments. This can become a financial problem if it is not supported by an emergency fund. You can consider the various deposits below because the risks are relatively low.
Time deposits are guaranteed by the Deposit Insurance Corporation (LPS), and offer much higher interest rates than regular savings. Only you should know that this investment is subject to a final 20 percent tax. Since September 22, 2020, there are several commercial banks that offer interest rates of 5.50 percent per year.
If the interest is deemed insufficient, you can apply for a deposit at several Rural Banks which offer higher interest rates than deposits at commercial banks. You only need to adjust the maturity of the deposit with the time for a down payment or home purchase in cash.
Fixed income and money market mutual funds
Money market mutual funds are the safest mutual funds because the securities portfolio in the mutual fund is in the form of money market instruments. While fixed income mutual funds have a portfolio of securities consisting of debt securities such as state or corporate bonds and several money market instruments in it.
Some RDPUs generally have a yield of 6 percent per year. Meanwhile, the RDPT yield can reach 9-10 percent. However, RDPT has slightly higher volatility than RDPU. Although not able to provide fixed returns, mutual funds have the advantage that they can be used for periodic savings, small minimum investment, tax free, and can be withdrawn at any time. This feature is an advantage of mutual funds over time deposits.
12. Saving gold
Gold is one form of investment whose value tends to be stable because it is not affected by inflation. If you are looking to invest long-term in savings to buy a home, gold could be an ideal consideration. But don't forget to learn and understand clearly about gold investment. Learn about the advantages and disadvantages of gold, especially during this pandemic, whose value is relatively volatile.
13. Change the extravagant lifestyle
Usually 70% of income is used for daily needs such as shopping for food, clothing, transportation and entertainment needs. You should make the best use of this budget, don't disturb the savings post for down payments and home installments.
You can adopt a frugal lifestyle and don't forget to record every expense that occurs in a month. If there is a balance of 70%, you can save it for a down payment and house installments. But if you overspend, you should evaluate what went wrong.
A person's consumptive attitude usually tends to occur at the beginning of the month, aka when they just receive a salary. Wasteful actions can be avoided if you make a clear budget and save in advance. Interested in trying this way of saving to buy a house with a salary of 1 million?
14. Consistently save and invest
A down payment on a house is difficult to collect if it stops midway. Because the amount is relatively large, you must continue to save regularly with a portion of 30% of your income. The amount of money you save may not be large, but it will still make a big impact on buying a house.
Not only when saving, consistency is also needed when you invest in money market mutual funds. Beginners are usually wary when they see their investment portfolio experiencing a decline in value, even though this is common.
One way to overcome this is by not rushing to attract investment. Because every market decline is always followed by an increase in value. Investing on a regular basis will give you a discounted mutual fund price when the market is down.
When the economy returns to normal, you will get much more optimal results. Especially if you invest in mutual funds for long-term goals such as a down payment on a house.
15. Set aside funds for property insurance
In addition to setting up a savings fund to pay the down payment and house installments, you also have to set it aside for property insurance. Because every person or asset in the form of a house or property is vulnerable to risk in the future. These risks include earthquakes, theft, fire, floods, and others. We certainly never know the risks that befall our homes, homes, or offices.