The most common reasons for a payday loan

What are the Swiss actually taking out loans for? This is what the well-known Swiss internet comparison portal wanted to know, and in April this year surveyed 1,011 adults across Switzerland. There were some amazing results here, because the reasons for borrowing are usually very different.

Over a third of those surveyed have already taken out payday loans

personal loans

In the survey, 34% of the respondents stated that they had already used a Swiss payday loan. Unsurprisingly, the car loan came in first place with 49% as a loan purpose. Other purchases such as furniture (13%) or consumer electronics (12%) came in at the bottom of the rankings.

Surprisingly, the loan is often used to finance training and further education (16%). This is even the main reason for credit demand among those under 35. Another interesting detail of the current survey is that men (41%) choose credit financing more often than women (27%).

 

Filling financial holes with a payday loan?

personal loan?

Financial bottlenecks are increasingly being bridged with a loan – for 31% of those surveyed, this is the reason for a payday loan. 21% said they used the borrowed money to pay debts or open bills. The following reasons were repeatedly mentioned for a payday loan:

  • Unforeseen bills
  • unexpectedly high tax assessments
  • urgent repairs to the car or your beloved home

 

Most loan amounts remain below $ 10,000

Most loan amounts remain below $ 10,000

The loan requirement or the loan amount is not always negligible. The survey now found that 17% of borrowers took out a loan of $ 20,000. 28% of the respondents needed a loan with a sum of between $ 10,000 and 20,000.

By far the greatest need was identified for a loan amount of less than $ 10,000. 55% said they had taken out a payday loan of exactly this size.

 

There are also some regional differences

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The current survey also provides some results for regional peculiarities. It turned out that payday loans, for example, are more popular in Ticino than in German-speaking Switzerland or French-speaking Switzerland. There is also a very clear urban-rural divide. According to the survey, payday loans are generally used much more frequently in metropolitan areas and cities.

 

Looking for a cheap and fair loan?

Looking for a cheap and fair loan?

More and more Swiss are looking for a fair and cheap payday loan on the Internet. We at Best Bank offer our crowdlending loans at precisely this point, placing our offer to private borrowers. With growing success: Direct lending, transparent fees and Swiss reliability are our credo. We also personally support our borrowers in answering your questions.

The Best Bank loan calculator is easy to use. You can quickly and easily get a financing offer for your new car or the urgently needed repair. But first of all it doesn’t matter what you need your online credit for – at Best Bank we cover a wide range of credit solutions:

  • payday loans
  • refinancing loan
  • Credit increase
  • Credit card refinancing
  • car loan
  • house financing
  • Health loan or
  • Home loan

We already answer numerous questions about borrowing at Best Bank in our FAQ. If you have any further questions, please contact us at any time using the contact form.

How to do if mortgage loan insurance is expensive

Mortgage, usury, and withdrawal from the insurance policy too high: the customer can find the most convenient offers on the market.

You asked for bank financing. In the face of the mortgage that will be paid to you, the official told you that you will also have to take out insurance for the risk of dismissal and death, which will safeguard the bank if, for one of these events, you will no longer be able to return the loan.

Cost of the policy

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Except that, when you do two accounts, you realize that the cost of the policy is extremely high. It almost seems to you that behind it lies the bank’s intent to charge additional charges. So you wonder what to do if mortgage insurance is expensive. In these cases, there are two remedies to be carefully evaluated.

Insurance ends up being a burden on the customer so that, by turning on the main contract, the mortgage one, it can invalidate its validity and even render it null. It is, in fact, a single commercial operation, even if formalized with a different writing and a separate form.

The recent regulations for the protection of borrowers have laid down some guarantees aimed at preventing vexatious conditions from being hidden behind the insurance.

Recently, the Cassation also intervened on this point, which, as we will see in this article, clarified how the cost of the policy can be relevant for the calculation of the usury of the loan. But let’s proceed with order and see what to do if the mortgage insurance is high.

Is mortgage insurance mandatory?

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Banks, credit institutions and financial companies often condition the disbursement of the real estate loan to the stipulation of an insurance contract (e.g. building policy, fire, etc. or on the person of the lender for the case of death, serious injury or insolvency, with a constraint in its favor: in this way the bank can pay off the residual amount of the loan by collecting the compensation paid by the insurance company).

The bank may well condition the provision of the mortgage to an insurance policy but cannot oblige the customer to underwrite its own.

In other words, the borrower is free to look for a cheaper policy on the market, always on equal terms. In this case, the bank must accept, without changing the conditions offered for the disbursement of the mortgage, the policy that the customer finds on the market. This policy must have minimum contents corresponding to those required by the credit institution and the financial intermediary.

Right to withdraw from expensive insurance

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If, on the other hand, the customer signs a policy proposed by the bank, by the credit institution, by financial intermediaries or by their agents, the customer has the right to withdraw from the same within sixty days. In the event of withdrawal from the policy, the loan agreement remains valid and effective. If the policy is necessary, the customer can replace another policy found on the market with the minimum required contents.

Information obligations

The bank must inform the customer of the commission received and the amount of the commission paid by the insurance company to the intermediary, in both absolute and percentage terms on the total amount.

To hedge interest rate fluctuations, mortgage transactions can also be linked to the subscription of other financial products, such as, for example, swap derivative contracts or investment funds which are pledged to guarantee the fulfillment of mortgage obligations. ; also, in this case, the subscription is optional.

Expensive insurance: the mortgage is usurious

To calculate whether or not the bank loan exceeds the usury thresholds, it is not only necessary to consider the interest rates but also the cost of all ancillary charges such as the preliminary costs and the insurance policy. ABF himself, the Banking and Financial Arbitrator, pointed out more [1] that the usury of the loan contract must be assessed by also counting the insurance costs incurred by the debtor to obtain the credit.

Cost of insurance

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The cost of insurance is indicated in the Tang (annual percentage rate of charge); it is in fact from this that we can get a precise idea of ​​the charges that are incurred with financing and whether this is convenient or not.

Therefore, the failure to explicitly include in the costs relating to the insurance premium violates the obligations on the information in favor of the consumer, even if it is a cost imposed by the law and obtainable from other documentation.

This violation determines the nullity of the clause relating to the Taeg and consequently the application of only the substitute legal rate.

What are the consequences of a usurious mortgage?

In this case, the customer no longer has to return the interest or the insurance costs and premiums to the bank, which will be returned to him as soon as possible.

Online bank for individuals and businesses.

Best Bank is the official website, the second largest Italian banking group in terms of size and turnover. Today more than ever the site of a bank is extremely important because it represents a fundamental interface that acts as a link between the credit institution and the customer. Precisely for this reason we decided to start a series of reviews of the websites of the various banks to understand how they are structured and what services they offer to the customer.

Review Best Bank 

Review Best Bank 

First let’s analyze the structure of the Best Bank website. The site is divided into some central sections where all the products and services that concern individuals, young people and small businesses are collected (for large companies a separate portal with dedicated services is available). The subsections are those that most interest us as they enter the specifics of products: Accounts, Cards and Bancomats, Loans, Mortgages, Investments and Savings, Insurance and Internet Banking.

In each of these sections you can find detailed information on individual products and also some industry news. But let’s go in order and try to deepen our analysis. In ” Accounts “, for example, you can find descriptions of all types of bank account in the My Genius series.

Also noteworthy is the “ Work with us ” section, which is very useful if your aspiration is to work in a bank. You can join a specific ad or simply submit your application for the preferred position. Although there are no major personnel acquisitions taking place at the moment, it is still worth a try.

Best Bank : our opinions

Best Bank : our opinions

The Best Bank website is done quite well although, at times, the information can be a little confusing. The biggest flaw, if we want, is the limited possibility of interaction with the user, a limit that, in our opinion, should be filled immediately. On the contrary, you can find a simple button “Make an appointment” that allows you to get advice in the branch.

Especially from a credit institution like Best Bank we would have expected a little more, from this point of view, but the bank must be acknowledged that the site is full of technical information on the products offered to all types of customers, which many other banks they don’t.

Overall, our opinion on Best Bank is quite positive. If they could organize the content a little better and allow, for example, to request a quote for a personal loan, a mortgage or for opening a bank account directly online, it would be really the best.