In the relationship between the customer as the ‘Credit Grantor’ and the Bank as the ‘Credit Grantor’, it seems that the upper door always belongs to the ‘Credit Grantor’ but this is not always the case.
Please refer carefully before choosing the side to send…red book
Ms. Phuong, an administrative worker in Hanoi, consulted a total of 6 banks before deciding where to borrow money.
” I carefully asked all of you at the Bank about all issues related to PRICE. What is the initial interest rate, how long is it fixed, how much is it after the change, application fees, penalty fees for payment? pre-maturity debt… ”
Admitting that this took a lot of her time and effort, in return, Phuong got the necessary information about the family’s loan of more than 1 billion dong. Her and her husband’s monthly income is not too high, so when signing a bank loan to buy a house, she must be very careful.
In fact, people who take out a home loan for the first time often do not know concepts such as grace period, floating interest rate, fixed interest period, early repayment, etc.
The internal regulations of banks on fees or insurance are also different, making customers often easily fall into the situation of “information matrix”.
According to Mr. Giang, a long-time employee in the retail banking segment, customers need to pay attention to the following basic issues when taking out a loan:
First, the interest rate is not fixed for the life of the loan. That is, when someone offers you “The interest rate is only 7%/year”, you will need to care how long that attractive interest rate will last.
Second, fees may arise. Depending on the policy of each party, some banks charge fees for property appraisal, some banks do not.
Remember, notary fees, mortgages related to public administrative services, must be paid by customers.
Third, life insurance is not required to accompany the loan. Fire and explosion insurance for special properties such as apartments, some goods, .. is available. The reason is that the apartment building is classified as a facility with high risk of fire and explosion, which is specified in Decree No. 23/2018/ND-CP issued on February 23, 2018 on Fire Insurance forced explosion.
Fourth , early repayment will normally be penalized. Although this is confusing and frustrating for many customers, it comes from the bank’s internal capital trading mechanism and preferential interest rates for the first time. Learn about early repayment regulations and calculate the right balance for your needs and cash flow.
Fifth , always have a backup when calculating the repayment schedule. It is a gap that helps you offset unpredictable risks such as reduced income, job loss, illness, unusually increased spending, etc. After the Covid pandemic, this becomes even more meaningful.
Read carefully not only the credit contract
In order, the customer will sign the following legal documents during the application and disbursement process: Mortgage contract, credit contract (with reference to the mortgage contract), debt receipt (also known as debt receipt agreement).
In particular, the mortgage contract will be signed first, the content related to which property is mortgaged, how much money is guaranteed for whose obligations, etc. The mortgage contract is the legal basis for the mortgage. register as collateral for collateral and need to be signed in front of a notary.
Credit contract and debt receipt will be signed bilaterally between the customer and the bank.
Most customers who do not have experience with loans often try to read the credit contract carefully, but in fact, the credit contract only stipulates the general principles.
Specific information such as actual disbursed amount, disbursement date, repayment date, interest rate, early repayment fee, etc. will be shown in the debt receipt (debt receipt) when the customer specific disbursement.
These are really the most important financial information customers need to know, but it is what the Bank will give you in the end, after completing the mortgage contract, credit contract. In order to avoid falling into the situation of “shipped board”, what you should do right from the start is to have a thorough discussion with the bank’s consultant right from the stage of collecting and making documents.
Customers have the right to refuse to buy life insurance if they do not need it
The Governor of the State Bank Nguyen Thi Hong affirmed that the law on insurance business stipulates the principles, rights and obligations of the parties involved in insurance business and exploitation, in order to ensure the Insurance participation is voluntary, on the basis of the customer’s needs and financial ability, not forcing the customer to buy insurance.
Insurance agency contracts signed with banks also do not require insurance products to be sold with or associated with banking products and services. The signing and performance of insurance agency contracts under the agreement between the insurance enterprise and the bank must ensure compliance with the law.
The State Bank said that it has directed banks to review the whole system and strictly handle cases that force customers to buy insurance that is not really necessary when granting credit. this is still happening. In order to protect their interests, customers should discuss life insurance issues with the bank’s staff from the very beginning.
If there is a case where the bank staff “forces” the customer to buy life insurance, the customer can call to complain to the bank’s hotline or the regulatory agency.