Questions and answers

1. How can I obtain a personal loan?
2. What is the maximum loan amount?
3. What collateral is needed?
4. How is the personal loan repayment period decided?
5. How is the interest rate set?

6. What is the total cost of my loan?
7. How is interest calculated?
8. What are the loan up front charges?
9. What do I need to know about paying my loan instalments?
10. How can I calculate the total cost of my loan?

 

1. How can I obtain a personal loan?

You can apply for a personal loan if you are aged 18 to 65, are in work or have other sources of income.

2. What is the maximum loan amount?

Personal loans are usually for amounts ranging from € 1,000 to € 20,000. However, there is no maximum limit and the amount of the loan is determined by your needs, coupled with your ability to repay the loan. We make sure that we provide loans that are tailored to the needs and financial capabilities of our customers.

3. What collateral is needed?

Personal loans can be taken out providing the following collaterals:

  •   Personal guarantees
  •  Assignment of life insurance policies
  •  Blockage of deposit accounts
  •  Property mortgages, etc.

4. How is the personal loan repayment period decided?

The loan duration is for a maximum of 10 years and is usually repaid in equal monthly instalments. The size of the instalments is a decisive factor in determining the length of the loan.

5. How is the interest rate set?

It depends on what collateral you provide. If asset-based collateral is provided (mortgage, blocked deposits, assignment of redeemable life insurance policies), the interest rate will be lower than in cases where no such collateral is offered (i.e. where only personal guarantees are offered) the interest rate will be higher.

6. What is the total cost of my loan?

The total cost of any loan comprises:

  •  interest
  •  Bank up front charges
  •  Government charges (for mortgages / stamp duty, for example)
  •  third party fees (such as property valuer’s fees).

It should be noted that where the loan is not repaid in accordance with the repayment schedule, additional charges become payable. These are described below.

7. How is interest calculated?

  •  Interest is always calculated on your daily loan balance. As a result, over time the interest reduces because the loan balance is also reducing.
  •  Interest is calculated by multiplying the daily loan interest rate by the daily balance.

8. What are the loan up front charges?

Your personal loans are subject to up front charges which are payable once when the loan is taken out. These charges are as follows:

Bank up front charges

  •  Arrangement fees: These are Bank charges for preparing and evaluating your application.
  •  Documentation fees: The charge depends on the documents required for the specific loan. To learn more about the exact charges payable, ask your personal banker for the special fee schedule for personal loans or click here.

Government charges:

These charges are usually specified by law:

  •  Mortgage registration fees payable to the Land Registry.
  •  Charges for loan documentation stamp duty, payable to the Commissioner for Stamp Duty.

Third party charges:

These charges are for valuations carried out for the Bank by approved valuers where a property mortgage is offered as collateral, or charges in connection with life insurance.

9. What do I need to know about paying my loan instalments?

  •  To make things easier for you, you can give us written instructions for the instalment to be paid automatically from your current account.
  •  You must pay your instalments on the date specified in the loan terms and conditions. Make sure that you set a date that suits you by discussing this matter with your personal banker. If that date needs to be changed, contact your personal banker in good time to make the necessary arrangements.
  •  If you delay paying instalments, additional charges will be imposed in the form of a higher interest rate for the amount not paid. To avoid extra charges, make sure you pay your loan instalment as and when agreed.
  •  If your financial circumstances change and you can no longer keep up your instalments, contact your personal banker in good time to work out a new repayment schedule.

10. How can I calculate the total cost of my loan?

Find out about your loan’s APR

The APR (the Annual Percentage Rate) is the total cost of your loan (including interest and all bank charges you have to pay) expressed as an annual percentage of the amount you have borrowed.

The APR gives you an overall picture of the total cost of your loan and is the best tool available to you to compare different products from the same Bank or from other banks.

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