This article is outdated. The analysis was carried out in 2010 so it needs updating. If you are looking for a credit we suggest that you fill out our form and we will find the cheapest credit in the market. Our reviews are free of any costs.Returning to the articles on the theme, Personal Credit, we will now address the Individual Credit of ESBank. ESB Individual Credit presents itself as a dynamic solution for bank customers, who can choose to adapt the financing according to their needs.
Among the characteristics of the Individual Credit stands out the possibility of the banking client choosing to pay 12 or 14 installments per year.This possibility will allow the client in 2 of the 12 months to be able to double amortize his / her financing, being able to represent an advantage.But we will identify the characteristics of the ESB Individual Credit to see if there are any associated advantages.
- Amounts from 2,500 to 30,000 euros;
- Term of 6 to 120 months;
- Grace period up to 6 months;
- 12 or 14 installments year;
- Residual Value up to 30%;
- Financing of the Credit Protection Insurance;
- Fixed Interest Rates;
- Access to Interest Rate Bonuses.
The ESB way to analyze whether there is an advantage in contracting ESB Individual Credit is to simulate different scenarios.
Therefore, for a bank client who wants 5,000 euros for 60 months with fixed monthly installments and subscriESB the insurance recommended by ESBank, we calculate the following hypotheses:
ESB Individual Credit
The calculations are simple, we basically carry out simulations for the elements proposed to identify if the capital shortage, residual value and the double-benefit method are advantageous for the client.
What we found:
- There is no advantage in adhering to existing solutions, and the traditional personal credit method has a lower burden on the customer.
- Credit financing Credit protection will aggravate the cost of credit since you pay interest on a capital you are not using.
- APR is not a good indicator of decision;
- The interest rate of 14% is somewhat high;
- There are no study, opening or processing commissions.
In fact, the advantages of ESB in not having study, opening and processing fees means that the offer of the ESB Individual Credit financing has the lowest burden for the client in its traditional version as we can verify the total amount of interest and charges presented by the of the 4 hypotheses.
Another curiosity is that the proposals that have residual value present the greatest burden for the banking client, and this modality of financing is avoidable.
The last curiosity is that the simulators of ESB present low APR for the heavier options for the banking client.
ESB individual credit
This simple example gives the banking customer a very thorough and critical analysis at the time of the decision. It should be noted that this example represents 4 scenarios for the same financing in the same bank, which should be used in the comparison between banks.
The ESB Individual Credit has the advantage of not having any charges for formalizing and maintaining it. This advantage is clear, however, for the example chosen, a fixed interest rate of 14% is high compared to other solutions, such as Personal CD Credit.
Financing credit protection insurance
despite having a charge for the customer may represent a solution in unexpected moments of life, however, a market research may find offers with lower premiums and thus save a few euros.
However, the heavier options in terms of interest and charges for the customer represent the possibility of the monthly charge being comfortable for managing the household accounts.
What is meant is that each client should analyze the most advantageous scenario for his / her case, not only identifying the most advantageous scenario in terms of interest and charges, but also the scenario that has less impact on maintaining the quality of family life than It has.