zyroxin.com http://www.zyroxin.com My WordPress Blog Fri, 28 Jun 2019 07:03:32 +0000 en-US hourly 1 https://wordpress.org/?v=5.2.2 What Types Of Bank Cards Are There? Credit Card http://www.zyroxin.com/what-types-of-bank-cards-are-there-credit-card/ http://www.zyroxin.com/what-types-of-bank-cards-are-there-credit-card/#respond Fri, 28 Jun 2019 07:03:32 +0000 http://www.zyroxin.com/what-types-of-bank-cards-are-there-credit-card/ ]]>




There are more bank cards in addition to traditional credit or debit cards. For all consumers to ensure that they make the right choice for their finances, we have brought together the differences between the various types of bank cards.

These are payment methods issued by duly authorized payment service providers, which include credit, payment or electronic money institutions.

Bank cards, in addition to freeing up their wallet, make them safer on a day-to-day basis, since there is no need to walk around with a lot of money.

Bank cards also allow you to carry out various transactions: from payments to movements and balance queries, to bank transfers, to paying taxes, among others – for this reason they also become very comfortable.

However, there are different types of bank cards, each with its specificity. Get to know them.


1. Credit Cards


1. Credit Cards


Credit cards are the types of bank cards most known and used by the Portuguese. They stand out because they have an associated credit line that can be used, but that entails the payment of interest.

These allow not only to make payments for goods and services, but also, in some cases, to raise money on credit, an operation that is called cash advance and that implies increased costs for the client.

Learn more : What is cash advance ?

In contracting this product, the financial institution and the customer agree on the maximum credit limit – that is, the ceiling – as well as the form of repayment and respective conditions, the interest rate associated with the card and the costs associated with (usually translated into annuity).

The refund of a payment with the credit card can be done in two different ways according to the client’s need:

  1. Full repayment of the debt before a deadline (which is always predefined by the bank), which does not imply the payment of interest;
  2. Partial reimbursement, in installments previously agreed upon, which entails payment of interest on the amount owed.

Ideally the client will choose to pay the entire amount owed before the cut-off date, if possible, because this avoids interest payments.

On the other hand, it is also important to know the interest rate associated with credit cards, which is the APR (Annual Effective Annual Rate), which includes all charges and commissions associated with the card.

Another feature of this type of bank cards lies in the advantages they offer to consumers. There are credit cards that allow you to accumulate air miles , others that offer discounts , some allow you to accumulate points that can then be exchanged for products and / or services and there are still those that make it possible to recover part of the money spent on the card, called cashback . There are still those who offer access to exclusive benefits – these are premium cards.

The offers are diverse, being only necessary to compare the market to find the most suitable for you.

Choosing the Right Credit Card Meet : 5 Expenses you should not pay with your credit card


2. Debit Card


2. Debit Card

Debit cards are also the most widely used types of bank cards. These are linked to a current account in which the value used by the consumer is immediately discounted, either for service / purchase payments or for withdrawals.

This financial product allows you to raise money, make payments, make consultations and bank transfers, among other operations.

Pay attention:

Debit cards have annuities and commissions whose amount charged differs depending on the financial institution, so you should analyze these aspects in detail before choosing a card for you.

Find out : What makes a good bank account?


3. Deferred Debit Card


3. Deferred Debit Card

This is a sub-type of credit card (even if it is called a “deferred debit card”), being associated with a current account and allowing the payment of goods and services and withdrawing money.

But what does this model differ from the normal credit card? The deferred debit card does not carry interest payments.

This type of card has an associated maximum credit limit, such as a credit card. However, the movements made by the customer are not immediately displayed in the balance of their account. Instead, they are debited later, on an agreed date between the consumer and the issuing institution of the card.


4. Loyalty card


4. Loyalty card


Loyalty cards are one of the types of bank cards that exist, but they differ strongly from others because they belong to a particular brand or store, and may present the form or not of credit cards.

These products, which do not have an associated credit line, are only used in their brands and do not allow payments to be made.

On the other hand, if it is a loyalty credit card, the advantages are more appealing: discounts on the brand, in some cases the possibility of making purchases not only in the brand, but also in other stores, as well as fractional payments when purchasing products or services of the brand in question.

If this is the case, the card will be associated with an issuer. In Portugal we have the examples of Oney , with the cards of Leroy Merlin and Jumbo, Cetelem , which associates with brands like IKEA and Media Markt, and UNICRE, with Credivision and Halcon cards.


5. Prepaid Card

5. Prepaid Card

With the prepaid card, the customer only has available a certain amount to load beforehand. This card makes it possible to make payments and withdrawals, as is the case with the debit card, in case there is a remaining balance. After use, the amount used is taken from the balance of the prepaid card.

Some institutions that hold prepaid cards are BPI , Caixa Geral de Depósitos and Millennium bcp .

Learn : How to make secure online purchases with the prepaid card?

6. Dual Card

6. Dual Card


The dual or mixed card is the latest of the various types of existing bank cards. This combines the functions of debit and credit, allowing to perform operations in both functions.

As a rule, this type of bank card is associated with two payment networks, one credit and one payment, which may be, for example, Visa and American Express or Visa and MasterCard .

There are several financial institutions that have this type of bank cards. Santander Totta and Banco Best , for example, have this feature on all their credit cards. The same goes for some New Bank products : NB Green Dual, NB Gold Dual and NB 360 Platinum Dual. Other banking entities with dual cards are BPI and Crédito Agrícola .

Realize : What is the difference between Visa and MasterCard?

But then, which one to choose from among the types of bank cards?


But then, which one to choose from among the types of bank cards?


It all depends on the needs and use of the bank card. However, it is very important to have some aspects in mind, such as interest rates, as well as the fees associated with different payment operations – cash advance , online credit or fuel tax – and the rates charged in payments made abroad.

On the other hand, should also look at the annuity. A non-annuity card is very appealing, but may not have all the features and / or advantages you are looking for or need.

Lastly, you should also consider the pros and cons that the various types of bank cards present and of course, compare the entire market to choosing the right one for you. In a few steps, through our platform it is possible to analyze all the credit cards of the market and to understand which one fits best in your needs:



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Can you Borrow Loans http://www.zyroxin.com/can-you-borrow-loans/ http://www.zyroxin.com/can-you-borrow-loans/#respond Sat, 15 Jun 2019 07:03:49 +0000 http://www.zyroxin.com/can-you-borrow-loans/ ]]>



There are many Danes who have ended up in the RKI even though it is indebted, and it can often be unfortunate situations that have got people in this situation. For example, if you are on cash benefits, it can be very difficult to get the ends to meet, so you can quickly end up in a situation where you are forced to borrow to get the rent, food or the like. Therefore, many can also come into a situation where the RKI becomes a reality, since, for example, on cash assistance, there is not a particularly large amount of disposable money and therefore find it difficult to find money to suddenly pay off debt.


These loans are cheapest


Can you borrow if you are in RKI


If you take out a loan, you need to be aware of what you are going to pay in the APR.

Some consumer loans are at the high end and here you always have to check up on what you have to pay in setting up. If you are going to buy a car, you can often get some loans having interest rates below 2% and these loans are very attractive.

Bank loans are usually some of the cheapest, but consumer loans are generally quite expensive and therefore you should investigate the market before you take them. Read more at Lånpenge-nu.dk



If you do not pay your bills then you risk ending up in the RKI, but there are quite clear rules for how many reminders you must have received before you can be registered as a bad payer in the RKI.

These reminders must be made in writing and you must have at least 3 of them before you can join the RKI. The first 2 of the reminders you get must not threaten you to end up in the RKI if you do not pay them. There must be at least 10 days between them. When you get the third reminder, you must be warned about the RKI if you do not pay it.

If you owe money to the public then this amount must be at least $ 7500 before they can report you as a bad payer. In addition, you must be at least 18 years before you can be registered in RKI.

How to get out of RKI

How to get out of RKI

Once you have paid off your debt, you will be deleted from the RKI register, and here it is important that you get a receipt, so that you can document yourself debt free with the company that sent you to the RKI. You must also ask the company to delete you from the RKI, as this is the company’s task. If you do not pay your debt, you have been deleted from the register after 5 years. But you will not be indebted even if you have been deleted.

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Transfer Order and Direct Debit – What does it Mean? http://www.zyroxin.com/transfer-order-and-direct-debit-what-does-it-mean/ http://www.zyroxin.com/transfer-order-and-direct-debit-what-does-it-mean/#respond Fri, 14 Jun 2019 06:41:04 +0000 http://www.zyroxin.com/transfer-order-and-direct-debit-what-does-it-mean/ ]]>



The promotion of online banking has made financial exchange between people faster and simpler than ever. What term defines the activity that millions of people do every day around the world? This is of course a transfer order. What exactly does a transfer order and a withdrawal order consist in?

Along with the development of the Internet, we can observe an increasingly faster development of the necessary services which forced us to leave the house and dedicate a lot of time. With the success of smartphones, which has served the current phenomenon of the Internet, everyday activities become prosaic, instant and banal. With regard to the development of the Internet, it is thanks to this fast and intense process that we owe the fact that banking operations are so simple today. To make a transfer, we do not even have to turn on the computer anymore – we can order it on the street, in a streetcar, shop or on the move with a few touches on the screen of our smartphone. Most of us carry out transfers almost automatically. What is this action at all and how does something that we officially call the term transfer order mean?


Transfer order – definition


Transfer order - definition


Under this rather simple concept there is also a light definition. A transfer order is nothing but a cash settlement in a non-cash form. By using a simple form on the website of our bank or using the mobile application, we issue instructions for the amount specified by us. It is charged from our bank account and transferred to the payee’s account given by us. If the value of our funds on the account is at least as high as the amount of the ordered transfer – the bank proceeds to its implementation practically immediately.

There is only one condition – the payer and the payee must have an account with the same bank. Otherwise, the transfer is executed the next business day at the times the bank is conducting incoming sessions.


What data is needed to transfer the transfer order?


All data that is needed by the bank to index our transfer is provided as on a tray in the form, with the help of which we will order a transfer. Of the several headings, in total during the transfer we must provide our personal data (person ordering the transfer), the recipient’s bank account number, name, date and amount of funds transferred, as well as its currency. There will also be a date and number of our bank account, which are usually generated automatically.

Lovers of traditional banking can still send a classic, paper form that can be picked up and drawn up at a nearby post office. The classic, rectangular pink print, apart from the above-mentioned data, whose scope of necessity is the same, additionally requires – a signature consisting of the printing and stamps of the institution, where it is transferred.

It is worth noting that interbank transfers can be implemented not only between Polish citizens, but also Polish citizens and foreigners. The transfer by entering the account is converted according to the current rate, sometimes with a commission.


What types of transfer orders are available in Poland?


What types of transfer orders are available in Poland?


In Poland, we can identify 5 ways for a transfer order:

  • ELIXIR – the standard and most popular type of transfer, the execution of which takes place in the interbank net settlement system in the Polish currency. The correct operation of the system, the principle of its servicing by banks, and even the daily schedule of servicing the ELIXIR system by the branches is regulated by the National Clearing House (KIR).
  • RTGS SORBNET – a type of transfer implemented in the SORBNET2 system, used to handle high amounts in real time. The RTGS SORBNET service is handled by the National Bank of Poland (NBP).
  • SEPA Credit Transfer – a system for the execution of transfers whose operating currency is the euro. It covers all 28 European Union Member States as well as a group of selected non-alliance states: Iceland, Liechtenstein, Norway and Switzerland.
  • SWIFT – a type of transfer referred to as a withdrawal order (more on this below), which consists in sending money in foreign currencies (euro, pound, Norwegian krona, etc.) remaining in circulation between more than 200 countries from around the world. It is worth noting that not every payment order fulfills all the features required by the transfer definition.
  • Immediate transfer – a type of instant transfer, which is carried out 7 days a week, 24 hours a day. Funds are usually transferred within a few seconds to a minute from the sender’s account to the recipient’s account if he has an account with the same bank. The most popular system that is used to handle instant transfers is Express Elixir.

Withdrawal request – what is it?


A withdrawal order is a popular type of transfer, which is commonly performed both in domestic settlements and, for example, when making transactions in foreign stores. It consists in the unconditional performance of the order to pay the amount specified by the sender, which can be sent to both a natural person and a legal person or an organizational unit. It takes place between a Polish bank and another domestic bank or foreign bank. In Poland, settlements are made using Nostro or Loro accounts. The condition is one – the currency must be different than zloty. In the past, the payment order was carried out by telegraph or post, currently taking place almost entirely in the sphere of online transactions.

The funds that are sent to the recipient by means of a withdrawal order may be at his disposal in the following form:

  • payment in cash
  • crediting the account, i.e., striking money into a bank account in electronic form by means of an online transfer
  • delivery of a check in order to continue with the payment of money

Transaction costs are divided into three categories:

  1. OUR – all costs are covered by the transferor
  2. SHA – costs due to the bank outlet from which the transfer is executed, are covered by the payer and the remaining costs are covered by the recipient of the money transfer
  3. BEN – all costs are covered by the recipient of the transfer

In short, the general specifics of a withdrawal request are as follows:

Direct debit - what is it?

  • Foreign currency of a person with a bank account abroad
  • Foreign currency of a person holding a bank account in the country
  • Unconditionality, meaning making a transfer in advance is irrelevant whether the contractor has complied with the findings
  • You can not undo it
  • It is best to use with small amounts of money
  • Avoid when payment terms are spread over time
  • The transfer order is not supervised by any Clearing House as in the case of eg domestic ELIXIR transfers
  • The costs of transfer order are higher than the domestic transfer, but incomparably lower than, for example, other inter-state forms of payment, like letter of credit

Direct debit – what is it?

Direct debit - what is it?

Direct debit is nothing more than a non-cash form of cash settlements. Its implementation is regulated by the Act on Payment Services, the Banking Law and an interbank agreement on the use of direct debits of June 1, 1998.

The described form of payment also takes place only in the area of ​​electronic payment on the Internet and hence – requires that both parties have accounts in the bank and the associated existence of bank account numbers. Unlike a transfer order, the originating party is the recipient. On the other hand, in contrast to a withdrawal order, the Polish zloty is the currency used for operations.

It is also worth adding that:

  • The transaction involves consent between both parties, where the sender must agree to debit his bank account in this way
  • The payer may cancel the executed direct debit transaction in 5 working days or 56 calendar days in case the recipient is a natural person who is not conducting a business activity
  • Transmitting transfers may temporarily block and similarly easily enable the execution of direct debits to any recipient

Summarizing. This transfer, contrary to appearances, is an extremely broad concept, containing not only terms with many meanings, but also completely different types of transactions. Perhaps, we do not realize how many names exist for banking activities that we do every day.


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Artificial intelligence in the financial industry } Business Loans and Plans http://www.zyroxin.com/artificial-intelligence-in-the-financial-industry-business-loans-and-plans/ http://www.zyroxin.com/artificial-intelligence-in-the-financial-industry-business-loans-and-plans/#respond Sun, 02 Jun 2019 15:04:50 +0000 http://www.zyroxin.com/artificial-intelligence-in-the-financial-industry-business-loans-and-plans/ ]]>


The essential

  • 62% of companies should use AI in 2018
  • AI reshapes almost all banking activities
  • Thanks to AI, Nalo automates some tasks with low added value

Genesis of AI

 Genesis of AI

Alan Turing was the first to document the subject in the early 1950s with the publication of an article, Computing Machinery Intelligence, in which he opened the following debate: will machines ever be able to think? Since the publication of this article, interest in artificial intelligence has tested two hypercycles, both of which have resulted in phases of disillusionment. The first phase appeared shortly after the creation of the MIT AI Lab by John McCarthy and Marvin Minsky in the early 1960s, while the second began in the 1990s with Gerry Tesauro demonstrating that reinforcement learning can create game programs that can challenge humans. In each case, failures were caused, in part, by the very high costs associated with building and maintaining these systems and the lack of a rapid return on investment.

Artificial Intelligence: definition and functioning

Artificial intelligence is a scientific discipline related to the processing of knowledge and reasoning, the purpose of which is to enable a machine to perform functions normally associated with human intelligence: comprehension, reasoning, dialogue, adaptation, learning, etc. . Machine learning and deep learning are sub-domains of AI. They refer to techniques for forming algorithms on sets of data, to improve outcomes through experience and learning over time.

So why this time is it different?

In addition to the high costs, the hardware could not keep up with the needs of artificial intelligence, especially to address two key needs: speech recognition and image recognition, which are very demanding in computing power. During the 90s and 2000s the IA was put aside for the benefit of projects focused on raw power and finite element calculations. Today we are at a point of inflection. We have the convergence of algorithms, the influx of data, as well as the computing power. The latter will continue to increase, the algorithms to improve, and the data to grow. The computing power allowed to implement many statistical methods previously inaccessible.

Data, the raw material of these algorithms, are widely accessible thanks to the widespread use of information systems, the internet, mobiles, and other connected objects.

  • The development of the Internet has created new needs such as search engines and allowed the implementation of massively distributed architectures.
  • The growing needs in robotics, in the space conquest, in the autonomous car, computer security.
  • The many commercial applications of the AI ​​crossing machine learning, connected objects or big data.

Little by little, the symbolic steps have been taken. The victory of Deep Blue against Kasparov in 1997 or that of DeepMind, the AI ​​of Google, in the game of Go against Lee Sedol, then world champion. In France, 68 R & D laboratories work on issues related to AI. But the technology has left the research laboratories as well as the universities to settle permanently in the companies. A survey by Narrative Science found that last year 38% of companies used AI and this figure is expected to increase to 62% by 2018.

The AI ​​market will soon reach the momentum needed for widespread adoption primarily through deeper expertise, a broader set of applications, lower IT costs, and support from technology giants like Google or IBM in the US and the emergence of Tencent and Alibaba in Asia.

Artificial intelligence at the service of the financial sector

Artificial intelligence at the service of the financial sector

In the banking sector, where data analysis is an essential issue, artificial intelligence is reshaping almost all activities: trading, portfolio management, risk management, credit, or even customer relations and marketing. . One of the main factors in the evolution of finance is the increasing digitization that is paving the way for AI. As a result, companies in the financial sector have begun to anticipate these transformations.

For example, the US bank JP Morgan has developed a new program called ” Contract Intelligence ” which is able to interpret, through artificial intelligence, commercial loan agreements that required, before the creation of this software, 360,000 working hours a year for lawyers and credit specialists. Another phenomenon, more and more banks invest part of their customer service to these virtual assistants: the “chatbots”. They use AI to mimic human language and respond in minutes to questions from customers who want to know how much it will cost to withdraw cash abroad or if a deposit has been debited to their account. These intelligent systems learn from their mistakes, and represent a cost-free workforce available 24 hours a day, 7 days a week to improve customer satisfaction.

However, when the data is that of the customers it raises questions related to the transparency or the respect of the private life. To meet the growing challenges of securing financial data and the lack of trust of users in the financial sector, FinTech have real assets. The notion of transparency is paramount and the human must keep control of these systems, it must be ensured that he has the skills to work with these new technologies. It seems important to stay in the service of the human and not the other way around. Anticipating this transformation, regulation can be a catalyst for innovation, and the best way to help regulators promote the inclusion of AI is to start developing a set of principles.

In addition to cost optimization for businesses, the automation of low value-added tasks in financial services deeply reshapes the customer experience. FinTech has taken a step ahead by placing innovation at the heart of the customer’s day-to-day operations. Being able to open an account in a few seconds, sign electronically or have a totally personalized advice, all possibilities that maximize their chances of attracting a clientele sensitive to innovation.

Nalo and artificial intelligence


Nalo wants to apply investment best practices by making them accessible to as many people as possible thanks to new technologies. We incorporate all our know-how and knowledge in our algorithms, which have much more computing power and instant that a human manager is unable to implement. To manage the portfolios of our clients, learning algorithms and time series analysis methods are relevant. This is true at a very high frequency, which we do not do, but also on long-term strategies as we are trying to do.

In addition, AI allows us to automate low value-added tasks, thereby reducing operational costs, which translates into lower costs for our customers.

The integration of algorithms in our investment method also allows us to offer equal quality advice for all our clients. Regardless of the amount invested, consulting is equivalent, and human and operational errors are eliminated. Unlike a traditional manager who, by nature, has a hard time getting rid of his own risk aversion, an algorithm has no cognitive biases. As Daniel Kahneman (Nobel Prize in Economics in 2002) shows, the weakness of a manager comes from his emotional bias, and his counterproductive reactions to short-term market movements. Kahneman explains that a human is not capable of developing true expertise in a stochastic environment and that algorithmic rules are more efficient.

Learn more about D. Kahneman: these cognitive biases that deceive us

Paradoxically, the multiplied capacity of analysis of the AI ​​allows us to better know the customer, and thus to offer him a more personalized service. Our robo-advisor provides a tailored response to our clients’ investment objectives. Unlike traditional financial services, which will classify clients on a standardized risk scale (generally from 1 to 10), Nalo creates a unique and evolving allocation according to their heritage situation, the nature of their projects, their horizons. investment or risk appetite.

However, we are aware that the strength of algorithms arises from the know-how of those who make them. That’s why our team consists of wealth management advisors, computer engineers and financial engineers. Thus the financial adviser or the manager does not disappear from the value chain, he becomes the architect. Any intellectual work can not be replaced by an artificial intelligence, this is the case of complex heritage issues (optimization of IR, ISF reduction, transmission of assets) that deserve to be analyzed on a case by case basis.



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What Is The Depreciation Rate? | Housing Loans http://www.zyroxin.com/what-is-the-depreciation-rate-housing-loans/ http://www.zyroxin.com/what-is-the-depreciation-rate-housing-loans/#respond Fri, 24 May 2019 07:16:11 +0000 http://www.zyroxin.com/what-is-the-depreciation-rate-housing-loans/ ]]>



When you apply for a loan , one of the most important things to understand is what the amortization rate is. In how many installments will the credit pay? How much are you repaying for each benefit you pay?

When you take out a loan, you set up a repayment period with the financial institution , which will determine the amount of the monthly installment to be paid. This monthly installment is composed of two installments: one of capital and another that includes interest , taxes, insurance and commissions.


Depreciation rate

Depreciation rate

The depreciation rate refers to the percentage of the capital that was actually paid to it by the bank. However, when you pay your monthly installment you are not only paying off capital – you are also paying interest, taxes, insurance and commissions to the bank.

For example, imagine that your monthly installment is 200 euros and in the first month the interest rate was 30%. In that month, its amortization rate was only 70%, that is, it only repaid its debt at 140 euros. The remaining 60 euros were interest.

The amortization rate varies according to the type of interest rate chosen for the loan, which, in the case of housing loans, can be contracted with a fixed or variable rate .

In the payment of fixed rate interest payments, the same percentage is charged during the credit repayment period, rather than in variable rate loans, where interest rates fluctuate. Usually, the interest rate begins to be higher and decreases as the benefits are paid.

In this way, the amortization rate also changes. In the first few months it is usually smaller, but as the amount of interest is paid, over the months, the percentage of amortization increases.

Learn more: How to write off mortgage loans and what are the costs?

Early Amortization

Early Amortization

Although the initial contract with the bank sets a certain time limit and a number of installments to pay off your loan, the institution grants you the right to make an early repayment, if you can, to repay part or all of the debt before of the loan.

Partial early amortization

Partial early repayment allows you to reduce part of the amount of outstanding capital and thereby reduce the interest payable on your loan, leading to a reduction in the value of monthly installments.

To make the early repayment, you must notify the financial institution at least seven days in advance. The amount is amortized on the day the benefit is due.

Do not miss: What is the impact of the negative EURIBOR on the provision of the house?

Total early amortization  

The total early repayment of a housing loan occurs when payment of the outstanding amount is made in full before the term stipulated in the contract.

This amortization can be made at any time during the contract, and the client must inform the credit institution at least 10 working days in advance.

Normally, banks charge a commission for the early repayment of the mortgage loan. By law, this commission can only have the maximum value of 0.5% of the capital reimbursed, if the contract is with variable interest rate, or 2% of the capital reimbursed in fixed interest rate contracts.

Deepen: What is the difference between TAN and APR?

The case of Jorge and Rita

The case of Jorge and Rita

Jorge and Rita asked for a housing loan of 120 thousand euros. The initial agreement stipulated an APR of 1.17%, with a 40-year term, monthly installments of 311 euros and a variable interest rate, which would represent a MTIC (total amount charged to the consumer) of 149,959 euros.

Find the best proposal to buy house

However, five years have passed and Rita has received a bonus of 5 thousand euros in her work and wants to use that amount to repay part of the loan in advance.

It notified the bank, seven business days in advance, of its intention to settle its debt amount.

The couple had already paid 60 installments, meaning that it still had 107,795 euros of capital to repay and 23,509 euros of interest to pay.

With the early amortization, after 5 years, the loan of the couple passed the following values:

It is also necessary to take into account the mode of interest rate applied. In the case of Jorge and Rita, the interest rate is variable, that is, the couple only had to pay a commission of 0.5% on the amortized amount.
If the interest rate were fixed, this value would rise to 2% of the amortized capital.

If the contract were fixed rate, the couple would have to pay an early redemption fee of 100 euros, which would cause the total cost of credit to rise to 27,773 euros.

However, the couple’s credit agreement is with variable rate, which means they will have to pay 25 euros early repayment commission. Adding this amount, the cost of Jorge and Rita’s credit will be a total of 27,698 euros.

Thus, the early repayment of 5 thousand euros represents, for the couple, a total saving of 2.262 euros in the total amount of their credit. This savings relates to interest that the couple avoided paying for having amortized this amount in advance.

If Jorge and Rita are able to maintain the rate of benefits of 311 euros (before depreciation), they can set aside the difference of the new benefit (296 euros) so that, after a few more years, they have already joined enough to redeem and thus save more on the loan.



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