Useful info on loans

What is a loan?

A loan is a sum of money that is transferred from one party, called lender, to another, called borrower, with the express or implied agreement that the sum will be repaid, usually within a specified period of time and at a certain preset charge, called interest. A lender can sometimes request the borrower to secure a person to support the borrower’s loan application, who would be equally accountable for repayment of the loan and who is usually referred to as the guarantor.

What is a repayment period?

Period of time during which you repay the initial amount of borrowed money, or principal, in addition to any accumulated interest payments or charges.

What is an Interest rate?

It is the fee charged by a lender to a borrower for borrowed money and computed as an annual percentage of the principal amount owed.

Types of Interest rates:

Regressive interest: The interest calculated on the outstanding balance of borrowed money. Interest amount decreases whenever settlements are made to the principal borrowed amount.
Flat interest: The interest calculated on a principal sum over the entire loan period, without taking into account principal repayments.

Example:

Loan amount: $1,000
Loan duration: 2 years
Interest rate: 5% flat
Interest amount = $1,000 x 5% x 2 = $100.
Payment per month = ($1,000 + $100)/24 = $46

How to be eligible for a loan?

• According to the Lebanese law, you need to be over 18 years of age to be entitled to apply for a loan
• You need to provide proof that you can repay the loan such as proof of income or secure a guarantor to endorse your application
• You must enjoy a good credit history i.e. no previous unsettled loans or defaults on repayments

Credit History:

Banks check your credit history when you apply for a loan; any payment defaults you have on previous loans will show on your credit record. As such, your past credit history is an indicator of your reliability to repay the loan. In general, you will find it difficult to get approved for a loan by a bank should you have a bad credit rating.

How to Build a Good Credit History?

Building a good credit history is essential to anyone who expects to benefit from financial facilities (personal loans, housing loan, car loan, credit cards, commercial loans…) or start a business. To build a good history:

• Pay all of your bills on time
• Do not default on your repayments
• Never give false information
• Avoid going over the credit limit on your credit card account
• Never issue a check if you don’t have sufficient funds in your account

e-Loan is an online application and approval process aimed at providing you with an easy, affordable and efficient way to finance your DELL PC purchases.

Benefits of e-Loan:

• No down payment.
• Top up option: replenish your loan to the initial loan amount, exempt of file fees, after 12 months of the granting date for the purpose of upgrading your Dell computer or adding accessories to it.
• Free MasterCard Internet card for safe shopping on the web, mail or telephone.
• Free MasterCard Debit card with Ziyadah account opening.

BLC Bank’s Ziyadah account:

Ziyadah instant deposit account offers you both instant access to your money while still enjoying attractive interest rates and much more:

• Open an account as low as $15.
• Benefit from attractive progressive interest rate so that the more you save, the more you earn.
• Free MasterCard Debit card giving you access to your money 24 hours a day, 7 days a week allowing you to withdraw cash from ATM & to pay for your purchases.
• Enjoy it all only for LL1,500 / month as account management fees.

How to apply for an e-Loan?

All you have to do is choose your Dell PC:

Papers required for PC loan:

1. Copy of AUB ID.
2. Copy of national ID.
3. Proof of residence.
4. Salary certificate authenticated from the bank.

Papers must be submitted in SETS s.a.l for PC loan application filling.

e-Loan gives you the choice to forward the required documents online by scanning and attaching them to the application and will also enable you to track your orders online.