Personal loan, mortgage loan, car loan – NewCredit

NewCredit – Personal loan, mortgage loan, refinancing, car loan –

  • Document analysis – The action by which the banking or non-banking institution to which the future debtor applies for a loan evaluates the credit files. The evaluation of the documents involves the analysis of risk factors and the ability of the future borrower to repay his loan according to the credit agreement.
  • Advance or own contribution – The amount of money that the debtor covers from its own sources to complete the borrowed amount, in order to fulfill the purpose for which the loan is contracted.
  • Capitalization – Represents accumulation by addition. The capitalization of interest represents the automatic addition of interest to the maturity of a money deposit.
  • Credit card – This type of card is funded by a banking and / or non-bank institution, and the cardholder has the obligation to return the money according to the credit agreement concluded between the bank or NFI and the debtor.
  • Debit card – This type of card is funded by the cardholder or his employer. An example of a debit card is the salary card itself.
  • Embossed card – Embossed cards have embossed identification elements through which the cardholder can make payments anywhere. Example: manual invoicing, ATM, POS and online payments (on the Internet).
  • Indented card – These types of cards do not have embossed identification elements and can only be used for the electronic environment.
  • Collateral cash or collateral deposit – The amount of money that the debtor or guarantor offers as collateral for contracting a bank and / or non-bank loan. This money remains blocked for the entire contractual period of the loan obtained. The money deposit returns to the holder only after the loan has been paid. If the debtor interrupts the repayment of the loan, the banking or non-banking institution takes possession of the deposit offered as collateral.

NewCredit – Personal loan, mortgage loan, refinancing, car loan –

  • Credit application: A written request from an individual or legal entity for a loan.
  • Assignment: A document where the debtor offers certain debt rights as collateral to a bank. If the debtor stops repaying the loan, the bank takes possession of the assigned debt rights after signing the loan agreement.
  • Claim: The creditor’s right to receive something from the debtor or to demand something from them.
  • Commission: The amount paid by the debtor to the bank for loan-related services.
  • Current account: The account where the bank transfers the loan amount. This account is also used for deducting monthly installments. The debtor must replenish this account monthly to ensure timely payments.
  • Lending contract: The agreement between the banking institution and the debtor. The bank provides a certain amount of money, and the debtor agrees to repay it according to the terms. This contract includes all important details, such as the amount, deadline, interest, rights, obligations, and guarantees.
  • Contractor: The individual or legal entity that signs a contract. The contractor is the debtor who receives a loan and agrees to repay it on schedule.

NewCredit – Personal loan, mortgage loan, refinancing, car loan –

  • Credit: The amount of money a creditor lends to an individual or legal entity in exchange for interest.
  • Bank loan: The money a banking or non-banking institution lends to an individual or legal entity for interest. The bank loan has precise, established conditions.
  • Construction loan: The amount a banking institution lends to an individual or legal entity for building a property.
  • Consumer credit: A loan for purchasing goods intended for long-term use. Examples include furniture, appliances, gadgets, and cars.
  • Personal loan: A loan where the debtor does not need to explain how they will use the money. This loan finances personal needs, like renovations, travel, legal issues, or studies.
  • Real estate loan: A loan for a significant amount of money. The debtor repays it over time based on the lender’s conditions. This loan can buy a home, build property, modernize a home, purchase land, or refinance other real estate loans.
  • Creditor: A banking institution or non-banking financial institution that offers loans.
  • Mortgage loan: A loan to purchase, build, or renovate property. The debtor guarantees the loan with the financed real estate. Land purchases can also be financed with a mortgage.

NewCredit – Personal loan, mortgage loan, refinancing, car loan –

  • Eligibility criteria – The conditions that the future debtor must meet in order to obtain the loan from the institution to be financed.
  • Debtor – An individual or legal person who has taken out a loan from a banking or non-bank institution.
  • Interest – The amount of money that the debtor undertakes to pay to the creditor in exchange for the credit obtained from him.
  • Annual effective interest (APR) – The total cost of the loan is expressed as an annual percentage. This percentage reflects the total loan amount. It equals the total value of all commitments over one year. The cost includes opening and maintaining a specific account. It also covers using a payment method for transactions and withdrawals. Additional costs related to payment transactions are included. This applies when it’s necessary to open or maintain an account to obtain credit.
  • Credit documents – All the documents that the future debtor must make available to the banking or non-banking institution for the approval and granting of the requested credit.
  • Co-debtor – An individual or legal person who participates, together with the debtor, in the payment of the bank loan obtained by him.
  • Real estate valuation – Process by which the banking institution evaluates the real estate financed through a certified appraiser. The valuation of the property, which is the guarantee for granting the loan, is necessary because the banking institution finances an amount less than its equivalent value. For individuals, the bank offers a maximum of 85% of the value of the property, and for legal entities, the bank offers up to 75% of its value.

NewCredit – Personal loan, mortgage loan, refinancing, car loan –

  • Degree of indebtedness or monthly rate / income ratio – The ratio between the monthly amount that the debtor has to pay to the banking institution for the loan obtained, the amount of the monthly installment, and his net income. The maximum limit of this ratio differs from one bank to another and each bank has its own internal policy on calculating risk factors when deciding to offer a loan.

  • Banking institution – Financial institution (bank).

  • Non-banking institution (NFI) – An entity that carries out lending activities on a professional basis, under the conditions established by law. These non-banking institutions offer the same types of loans as banks, on lighter terms, but with higher interest rates than in the case of loans from banks.

  • Mortgage – The right of the banking or non-banking institution over the assets that the debtor has put as collateral for obtaining the desired loan. If the debtor interrupts the repayment of the loan, the bank has full rights over these assets to recover the damage caused by the debtor.

  • Lending period – The contractual period of time from obtaining the loan to its full payment by the debtor. After the loan is paid, the credit period ends.

  • Seizure – Withholding from the salary of a sum of money in the name of a debt. Wage seizure occurs when the debtor delays or interrupts the payment of installments for the loan obtained, or does not pay on time its current debts to various institutions (example: fines, taxes and duties).

  • Risk – The possibility that the bank / NFI estimates when considering whether or not to offer a loan to an individual or legal person. The calculation of the risk factor aims to avoid a possible damage.

Personal loan, mortgage loan, refinancing, car loan

  • Installment – The amount of money paid monthly by the debtor to pay a bank loan. The monthly installment comprises part of the value of the loan, together with the interest related to it, as well as the fees applicable to it (example: administration fee, life insurance).
  • Employment salary – The salary of the individual person according to the work book or the individual employment contract.
  • Net salary – The amount of money left to the person after the following donations are deducted from the gross salary: taxes, duties, various deductions and contributions.
  • Gross salary – The amount of the employment salary, together with the permanent increases that the person benefits from every month. If these bonuses do not exist, the gross salary is equal to the employment salary.
  • Maturity – The date on which the term of payment of a loan expires or the term on which the term of payment of an installment expires. After this period, the creditor may charge penalties. The amount of these penalties is included in the credit agreement.

Over 10 years of experience in finance and banking

  • Credit balance – The amount of money left to be repaid from a loan.
  • Occasional bonuses – Additional income that a person earns occasionally. Example: bonuses, night bonuses, increased salary. Banking and / or non-banking institutions do not usually take these cash increases into account when calculating eligible net income.
  • Permanent bonuses – Income that a person constantly receives and that contributes to the value of the net salary. Permanent increases are taken into account by banking institutions. Example: overtime, monthly, quarterly bonuses, sales commissions.
  • Eligible income – The amount of money that the bank considers optimal for a debtor to have the financial capacity to repay a certain loan. Each bank determines, according to the profile of the future debtor and the amount of money it wants to borrow, which is the amount that ensures the highest economic efficiency for the payment of the loan according to the credit agreement.

Personal loan, mortgage loan, car loan

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New Credit mediates lending solutions between you and banking institutions, offering all types of loans—from unsecured personal loans, consumer loans, and secured loans to refinancing, ‘Noua Casă,’ and credit cards—designed to meet diverse financing needs.

NewCredit – Personal loan, mortgage loan, refinancing, car loan –

With over 10 years of experience in finance, especially in personal loans, we have over ten thousand satisfied clients who turn to us whenever they need a banking product or financial advice.

We’re here to help you with a personal loan, a credit card, or refinancing an existing loan.

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