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By far the majority of loans taken out, especially in the retail sector, are so-called installment loans. More often, it is alternatively referred to as an installment loan. In our article we will go into more detail about what an installment loan is and how it works. We also explain what the typical conditions are and who can usually take out an installment loan.

What is an installment loan?

The main characteristics of an installment loan can already be deduced from the name. It consists in the fact that the amount borrowed is subsequently repaid in installments. In most cases, the installments are collected monthly from the borrower's account. Also characteristic of an installment loan is that it is primarily used to finance consumer spending. These include, for example, the purchase of a new or used car, the financing of a vacation trip or even the financing of a move. Many installment loans are given in blank, i.e. without the bank requiring collateral. Most credit institutions, which are active in the financing sector, offer such an instalment loan.

How does the installment loan work?

Installment credit is relatively popular, due in part to its high level of transparency and ease of understanding. It is easy to explain how an installment loan works. The first step is to apply to the bank for the appropriate installment loan. The lender checks your creditworthiness and the corresponding loan amount is credited to your current account following a positive credit decision.

If you want to open a securities account, you need to consider a few things. But even after opening, there are a few things to keep in mind if you don't want to make losses. One point that should not be underestimated is the monitoring of the securities portfolio.

Monitoring the securities portfolio is also called portfolio tracking. But why do more and more investors want to monitor their own securities portfolio? Why is the overall performance of the portfolio so important??

Learn how free portfolio performance monitoring works with Rentablo here.

Islamic finance is defined as a banking or financing activity that is in accordance with the Shariah, its interpretation and practical application through the development of Islamic economics. Felice Giuggioli provides insight into Sharia-compliant investing in Reyl Market Insight.

The Sharia-compliant investor seeks only an "acceptable" loan Profit. The reason Islam governs every aspect of a Muslim's life, even those aspects that a non-Muslim would consider outside the scope of the religion, lies in the word "Islam" itself, which literally means submission, submission to the will of Allah. Profit is acceptable only if its creation respects the rules of Sharia law, which are based on the protection and preservation of religion (faith), life, sanity, property and possessions (wealth).

This is the background that sheds light on the concept of Islamic finance, an approach based on the main prohibitions in Islam, which rests on four pillars: Riba (prohibition of interest), Gharar (prohibition of excessive insecurity), Maysir (prohibition of gambling) and Haram (prohibition of investment in prohibited activities such as gambling and commodities such as alcohol and pork etc.).

Given the tense situation between Mexico and the U.S., the emerging market faces significant challenges. MainFirst's Cornel Bruhin says investment opportunities in the energy and financial sectors can be found there, relatively independent of the U.S.

A new president, low growth in the first quarter of 2019 and tensions with the U.S. over immigration and trade: Mexico faces a number of challenges. Not least in view of the tense situation with the USA, many investors are currently rather negative about the markets in the Latin American country, says Cornel Bruhin, fund manager of the MainFirst Emerging Markets Corporate Bond Fund Balanced. However, he still sees interesting investment gems in Mexico – especially in the energy and financial sectors: "Oil and gas, electricity and finance are only slightly influenced by the US economy. Tourism as well as export business can even benefit from a weaker Mexican peso, as services and goods are mostly paid for in U.S. dollars, but their operating costs are in pesos", Bruhin points out. Thus, if you know the companies well, there may even be opportunities to expand positions.

In addition, the U.S. and Mexican governments have reached an agreement based on a deal negotiated over the past several months. Even if Trump threatens tariffs again, he said they are unlikely to be imposed. Because they would hit U.S. consumers significantly, and the U.S. auto industry would suffer especially, Bruhin said. In addition, Mexico is the third largest trading partner of the U.S. and tariffs would also jeopardize the new United States-Mexico-Canada Agreement (USMCA), he adds.

What is an Open Banking API and how does it work??

Open Banking APIs are changing banking. The open banking initiative allows bank customers to securely share their account information with third-party providers (TPPs). This is achieved through application programming interfaces (APIs) that allow TPP programs to communicate with banks' applications. The goal is to foster innovation in digital banking and accelerate the development of new financial applications and improved services for businesses and consumers.

Open Banking was initiated in 2018 by the U.K. Competition and Markets Authority (CMA), which directed banks to open their applications to TPPs. In the same year, the European Union pursued the same goal by updating the Payment Services Directive (PSD2), while imposing new security rules for access to payment accounts and financial transactions.

A typical application of an Open Banking API is the aggregation of data from different bank accounts into a single view provided by a TPP application. There are two types of TPPs. Payment Initiation Service Providers (PISPs) connect to a customer's bank account and initiate payments on the customer's behalf. Account Information Service Providers (AISPs) connect to a customer's bank account to provide a financial service, such as e. B. the money management, offer.

As the name suggests, a microloan involves comparatively small amounts of money. As a rule, it is about three-digit sums, now and then also about money in the amount of 1.000 euros or a little more.

For most entrepreneurs, a microloan is sufficient to help them get their business off the ground. Since the risk for the lender is often high, the interest rates are also correspondingly high: They are almost twice as high as conventional installment loans. In order to mitigate the repayment risk, microloans are therefore often granted in groups. In this approach, only one person receives the desired sum at a time, while the others serve as guarantors. Only when a loan has been repaid in full does the next person receive their money, with the rest of the group of people again acting as guarantors.

What is a microcredit?

Although even low-income people in Germany usually live far above the standard found in developing countries, the granting of microloans has the same goal. Numerous people who see no future for themselves on the primary labor market and who have a promising business idea take out such a loan. This shows how important this form of development aid is, even in large industrialized countries. Even without the high existential pressure that weighs on large sections of the population in poorer regions of the world, microfinancing in this country is aimed at the same motto: Helping people to help themselves. Only in the way of granting resp. The terms and conditions of microloans in Germany and Europe usually differ slightly from the prevailing practice in India or Bangladesh.

Those who no longer wish to manage their assets themselves are best off delegating the task to an asset manager. In Germany there are numerous financial service providers active in the field of individual asset advice and management. However, in order to find the right company, one should first obtain a few quotes and consider things that will make the selection easier.

What forms of asset management are available?

Many banks offer so-called standardized asset management to their clients. This means that as a client, you have no influence on how your assets are invested in this option. The only vote is on whether assets should be invested more conservatively or more riskily. Asset managers would then take care of the management without the client being involved in the process. In the case of individual asset management, as offered by JRC Capital Management, the customer can specify precise guidelines as to how the assets are to be invested. This type of asset management often requires a very large amount of assets. Investment sums from 500.000 euros is the entry level for individual asset management. However, there are also asset managers who manage portfolios individually even for smaller amounts. In general, the more you want to invest, the greater the influence you have on the investment strategy.

What are the costs of asset management?

In most cases, the manager charges a total flat fee, which is based on the volume of invested assets and risk profile. The more you invest, the lower the fees, which range between 2.0% p.a and 0.8% p.a can move.

As mortgage rates continue to fall, Chad Earnest's mantra with his referral partners in 2023 is: "No buyer left behind".

The Montgomery, Texas, area manager who moved from thereAmeriSave Mortgage CorporationtoCardinal Financial Companyin November launched a platform in mid-2022 to help its referral partners succeed.

He makes co-marketing investments and helps partners with their databases by looking for missed opportunities in the marketplace. The main focus is on borrowers who may be credit-constrained.

Today, many everyday purchases and expenses are financed with loans . Whether it is a car, furniture, high-quality consumer goods or travel, loans are often used when there are not enough financial reserves of one's own. Financing from outside funds is almost always necessary for private construction projects. As helpful as a loan may be in an individual case, interest and repayment are usually a noticeable burden. This would be lower if the borrowing could be claimed for tax purposes. Unfortunately, the tax authorities generally only recognize credit costs within narrow limits. This applies to both German and Austrian tax law. In both – very similarly structured – tax systems, loan interest can generally only be claimed if the underlying financing serves to generate taxable income. This largely leaves out credit costs incurred in connection with private purchases and consumption. In this sense, interest on loans can be deducted from taxes, especially in the case of real estate financing and loans for professional purposes. In the following, we provide an overview:

How borrowing costs can be deducted for tax purposes:

1.) Credits in the case of rented real estate

In the case of rental real estate, loans are usually used to generate rental income. Since the income is taxable, the interest on the loan is also tax-deductible. It does not matter whether the loan is used to finance the construction of rented accommodation or the maintenance (modernization or renovation) of the property. reorganization). In the case of mixed-use buildings (owner-occupied and rental), financing costs can usually only be deducted in proportion to the rental portion – unless it can be proven that the financing was used exclusively for rental purposes.

2.) Loans for owner-occupied real estate

In Germany, borrowing costs for owner-occupied properties are generally not tax deductible. In Austria, there was previously an exception in that loans for housing creation and renovation could be taken into account for tax purposes as part of the special expenses deduction. Both interest and redemption payments could be deducted. However, this rule only applies to pre-1. January 2016 loans taken out. The special expenses deduction remains possible for these loans until 2020.

The dream of owning your own property – being able to call a prestigious, modern house your own – is widespread. Anyone looking for a deal on construction financing (construction money) will come across many providers, some offering favorable interest rates, others less so.

• Free credit comparison
• Daily updated interest rates
• A head-to-head comparison of the best providers
• Instant calculation of monthly installments

The Internet as a guide for building and financing

Loan calculators or construction financing calculators on the Internet allow a selection of various loans to secure a real estate purchase over the years. Many issues play a role in choosing the right construction financing: mortgage rates, the property value of the real estate or the interest rate trend over the years. Is an interest rate lock on the loan effective? Which real estate financing from which provider should one request? Finally, the expiration of the payoff is also an important issue. A monthly installment must be paid over years continuously and also this should be considered with each construction financing: How many years is one at all ready to pay off a loan?

First the financial test

A personal financial test is at the beginning of every construction financing and real estate financing: How much equity capital is available?? How high is the property value? A very representative home requires more construction money compared to conventional, cheaper homes. The higher the equity, the fewer years a regular monthly installment must be paid for the financing project real estate. In general, in construction financing, the monthly installment for an expensive and representative home is higher than for an "off the shelf" home. A construction financing calculator calculates all the conditions of the loan, such as debit interest or effective annual interest rate.