Personal loan

1. Personal banker
2. What does the term ‘personal loan’ mean?
3. How can I obtain a personal loan?
4. What is the maximum loan amount?
5. What collateral is required for personal loans?
6. How is the personal loan repayment period decided?
7. How is the personal loan interest rate set?
8. What is the total cost of my personal loan?

Useful information about interest

9. Selecting an interest rate
10. How is interest calculated?
11. What are the up front charges?
12. What is the Annual Percentage Rate (APR)?
13. What happens if I delay paying my instalments?
14. When do I have to pay my instalment?
15. What happens if conditions change and I have difficulties in repaying my instalments as I had planned?

Explanation of banking terms:

16. What is Euribor?
17. What is the Annual Percentage Rate (APR)?

 

1. Personal banker

To ensure that you receive proper service and can discuss all the details of your loans so that they fully satisfy your personal needs, our Bank has introduced Personal Bankers who are highly-trained individuals at our network of branches. These officers offer rapid, responsible, professional customer service and you can discuss with them everything needed to tailor your car loan to your needs.

 

2. What does the term ‘personal loan’ mean?

A personal loan is a loan extended by the Bank to cover your personal needs. This may be:

  •  unexpected personal or family expenses
  •  holiday costs
  •  wedding costs
  •  small home repair or renovation costs

Personal loans can also be used to pay off existing small loans and for for rescheduling and reducing monthly instalments.

 

3. How can I obtain a personal loan?

If you are aged between 18 and 65 and are employed or have other sources of income you can contact us to obtain a personal loan. When you provide the information requested by the Personal Banker, the Bank will then process your personal loan.

 

4. What is the maximum loan amount?

There is no maximum amount, and the loan amount is determined by your specific needs and the Bank’s estimation of your ability to repay the loan. Our concern is to ensure that the loans you take out reflect your financial situation. Personal loans are usually for amounts ranging from € 1,000 to € 20,000.

 

5. What collateral is required for personal loans?

There are cases when personal loans can be granted without the Bank receiving any collateral. However, if collateral is required, it may take the form of:

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

6. How is the personal loan repayment period decided?

Your personal loan repayment period can be anything from 6 to 120 months, and repayment usually takes the form of equal monthly instalments. The size of the instalments you can pay is a decisive factor in determining the length of the loan.

7. How is the personal loan interest rate decided?

Interest rates for these loans depend on the collateral provided. It is only reasonable that if asset-based collateral is provided (, mortgage ,blocked deposits, assignment of redeemable life insurance policies), the interest rate will be lower and that in cases where no such collateral is offered (i.e. where only personal guarantees are offered) the interest rate will be higher.

8. What is the total cost of my personal loan?

A personal loan's overall cost consists of:

  •  Interest
  •  Bank up front charges
  •  Government charges (for mortgages / stamp duty, for example)
  •  Charges paid to third parties such as property valuer fees.

It should be noted that if the loan is not repaid as agreed, additional charges will be payable.

Useful information about interest

9. Selecting the interest rate

The Bank’s personal loan products offer either a variable or fixed interest rate.

If you opt for a fixed interest rate, that means that the interest rate remains unchanged for the period you choose (e.g. 5 years) and does not alter under any circumstances. At the end of the fixed interest rate period, if the loan has not been repaid in full the loan will revert to a variable rate for the period remaining until the loan is repaid in full.

If you opt for a variable rate, that means that the interest rate can change at any time (up or down). Whenever the general interest rate changes, your loan instalment will change.

10. How is interested calculated?

Some useful tips on how loan interest is calculated are provided below:

  •  Interest is always calculated on your daily loan balance. As a result, over time interest reduces given that the loan balance decreases because of the payments you make.
  •  Interest is calculated by multiplying the daily loan interest rate by the daily balance.
  •  Interest accrued is added to the loan balance (capitalised) twice a year on specific dates (30/6 and 31/12).

11. What are the 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 which specific charges are applicable, ask for a special personal loan price list.

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 are in connection with life insurance.

12. What is the Annual Percentage Rate (APR)?

The APR is the total cost of borrowing for the consumer, expressed as an annual percentage on the loan offered. The APR includes all loan cost factors (including interest and all charges, which consumers have to pay).

The APR is the best tool available since it includes all loan costs and helps you have a better picture when comparing various products from the Bank or other banks.

13. What happens if I delay paying my instalments?

If you do not repay your loan as agreed, additional charges will be applied. Charges take the form of an increase in the interest rate for the amount not paid plus a fixed amount each month. To avoid any additional charges, you must pay the loan instalment on the specific date agreed with your Personal Banker.

14. When do I have to pay my instalment?

You must pay your instalment as agreed on the date specified in the loan terms and conditions. To avoid paying unnecessary arrears charges, talk to your Personal Banker to arrange a date from the outset which suits you for payment of the instalment. If that date changes in the future, you should contact your Personal Banker in good time to make the necessary adjustment. To make things easier for you, the right thing to do is to give the Bank written instructions so that your instalment is paid automatically from your current account.

15. What happens if conditions change and I have difficulties in repaying my instalments as I had planned?

If your financial situation changes and you cannot repay your debts and pay your instalments as agreed, you should contact your Personal Banker in good time to arrange a new repayment schedule which reflects your new circumstances.

Explanation of banking terms:

16. What is Euribor?

Euribor is the interbank borrowing rate for the ‘main’ banks in the Euro Area for periods from 1 week to 12 months. The Euribor rate is published at 11:00 hours (Brussels time) every day. Euribor is fixed for the period it relates to. For example, for loans issued with a Euribor 6-month rate, the base rate will be fixed for 6 months and will be revised every 6 months.

17. What is the Annual Percentage Rate (APR)?

The APR is the total cost of borrowing for the consumer, expressed as an annual percentage on the loan offered. The APR includes all loan cost factors (including interest and all charges, which consumers have to pay).

The APR is the best tool available since it includes all loan costs and helps you to have a better overall picture when comparing various schemes from the Bank or other banks.

 

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