- Before taking a loan
Q.I intend to get a housing or a consumer loan from a Bank. What should I pay attention to?
A.First of all:
- Specify your exact credit needs and don’t be seduced by ads that create virtual needs combined with easy borrowing.
- Prioritize (rank in order of priority).
- Estimate your repayment potential, based on fixed income.
- Make cash programming, at least for the duration of the loan.
When you request a loan don’t have in mind only your current income but your future as well. Then:
- Do market research. (You can visit the Bank of Greece website (http://www.bankofgreece.gr)
- Select the Bank with the most favorable terms (interest rate, fees, charges, etc.).
- Concentrate your attention on the total cost of the entire length of the loan, and not just in the interest-free period of the initial offer or at a discounted rate.
- Collaborate with the bank to assess your creditworthiness, providing accurate financial data.
- Study carefully the terms of contracts before signing.
- Do not hesitate to ask for clarifications about the conditions you do not understand.
- Avoid taking new loans to pay overdue debt. This approach generally leads to over-indebtedness.
Q.I intend to ask the Bank for professional or small business financing. In addition, what should I pay attention to?
A.
- Determine healthy functional repayment sources.
- Determine non-functional repayment sources (real estate sales, liquidation merchandise). Make cash programming for at least the duration of the loan, through which seek to achieve the goals that you set (sales-profit-reducing costs).
- Do, if possible, a feasibility study (among others: market description, objective, market share etc.)
- For financing facilities you should proceed in expertise (space display, hygiene, property estimation, projects of building permit control).
- Types of personal loans
Q.I need a personal loan. What should I choose regular or open loan?
A.The choice depends on the needs of the individual:
- For a certain amount prefer the regular loan granted one-off.
- If you need, at times, money, prefer the open loan whereby the validity of credit has duration and enables you to borrow again, if there is a remainder.
When you pay an open loan, ask for the closure of the loan, otherwise you’ll be charged with management fees. The parties concerned must study the conditions applied (interest rate, duration, fees, other charges).
- Rejection of loan application
Q.I applied for a loan. The Bank rejected my request without explaining the reasons. Why?
A.Banks approve or reject financing requests, depending on their policy. Under the Code of Banking Ethics they have an obligation to inform the prospective borrower for their decision, but they do not have to disclose the reasons for the rejection of the request.
- Loan or credit card guarantor
Q.I am a loan or credit card guarantor. If the first party liable or the cardholder is not consistent with his/her obligations to the Bank, what is my responsibility? Can the Bank demand to pay myself the duties of the person that I guaranteed for?
A.
- The guarantor is liable in full for the total of amounts due to the Bank.
- The guarantor must monitor the repayment progress of the debt.
- The Bank must inform the guarantor, in case of repayment problems of the loan, in order to exercise its influence on the principal debtor to pay off his/her obligations.
- Late payment of installments
Q.I have delayed to pay my loan installments. The bank is asking me to pay a large amount that do not afford. What should I do?
A.In case you encounter temporary difficulties you need to:
- Notify the Bank immediately, in writing and orally.
- Ask for a debt settlement.
- Co-operate with the Bank for a settlement that allows the smooth repayment of your debt.
- Obey the agreed.
- Interest payment confirmation
Q.How do I get a housing loan interest payment certificate for the I.R.S.?
A.Request a housing loan interest payment certificate from the Bank for a first residence purchase, which is issued exclusively in the name of the borrower.