NEGATIVE INTEREST RATE LOAN FOM ABROAD

NEGATIVE INTEREST RATE LOAN FOM ABROAD

OVERSEAS NEGATIVE RATE COUNTRIES FINANCING EXPLANATION BACKGROUND DEFINITION HOW DOES IT WORK? EXAMPLE CALCULATION PERSONAL HOME LOAN MORTAGE CAR LOAN WITH INTEREST RATE BELOW ZERO NEGATIVE RATE AND BAD CREDIT SCORE

A negative interest rate loan from abroad is defined by a new type of funding facility granted in some countries by overseas lenders such as banks from abroad applying an interest rate below zero.

A negative interest rate loan from overseas means that a bank or a loan broker provide with a credit a facility to a borrower using interest rates below under zero which sound utopic but is becoming almost normal in some countries.

Negative rate financing abroad is becoming a reality, with the consequences that if a person borrows money from lender, he or she will have to repay the principal (the initial borrowed amount) deducted by the negative interest rate.

Overseas negative rate loans have a revolutionary impact on the way how funding is to become in future as it will let borrowers paying back less than they have received.

Let’s demonstrate this new approach through numbers. If an individual applies for a mortgage of 200,000 Euros using a negative rate of 1% per year, his repayment plan will foresee then a reimbursement of a total of 198,000 Euros over a one-year period and even less over a longer period.

NEGATIVE INTEREST RATE FROM ABROAD: CONSEQUENCES, ADVANTAGES, INCONVENIENT.

Overseas implementation of negative interest rates will have a significant impact on borrowers, individuals an entrepreneur as well on savers:

  • Borrowers will enjoy the negative rates as they will have to reimburse less than they have borrowed.

  • Savers, on the other hand, will find themselves with less money for their investment since the banks will have to apply penalties which are reflected in negative interest rates.

  • Life insurance can no longer grant a return to their insurance apart from negative returns which will push some of them to invest in more speculative funds.

WHY ARE THE CENTRAL BANKS IMPLEMENTING A NEGATIVE INTEREST RATE?

Initially the Central bank role was mainly consisting in to maintain a solid and stable currency by containing the inflation using interest rate as regulator for the prices development in a country or a currency zone such as the Euro zone.

In the absence of any inflation which is equal to a poor economic growth and which can lead to a recession, central banks are now trying to create more inflation (more economic activities) in encouraging consumers and companies to spend money not only through low interest rates, but in reversing the rate, in other words: in giving money indirectly.

WHAT KIND OF LOANS ARE IMPACTED BY THE NEGATIVE INTEREST RATES?

The negative interest rate from abroad applies to every kind of funding and financing:

  • Car loan with negative interest rate.

  • Home loan and mortgage with negative interest rate.

  • Personal loan with a negative rate.

THE NEGATIVE INTEREST RATE APPLIES TO WHOM?

The negative interest rate applies to any individual or entrepreneur whose credit score is good and who can prove as usual that he or she is able to meet his or her repayment obligations.

NEGATIVE RATE AND BAD CREDIT SCORE?

Even overseas negative interest rates exclude individuals and entrepreneurs who face a bad credit score and who are usually not able to obtain a funding facility through a classical bank as the negative rates are changing the general risk appetite.

OVERSEAS STUDENT LOAN    LOAN BROKER    OVERSEAS PRIVATE LOAN   WITH GUARANTEE    EDUCATION LOAN    OVERSEAS MORTGAGE    BUSINESS LOAN   PERSONAL LOAN    TAX ON LOANS    WITHOUT COLLATERAL    MICROFINANCE    P2P LOAN    CAR LOAN    WITHOUT CREDIT CHECK    CREDIT CARD    DEBT CONSOLIDATION    WITHOUT JOB    WITH BAD CREDIT    WITHOUT UPFRONT FEE    FOR DISABLED    ISLAMIC LOAN    LIST OF BROKER    LEASING FROM ABROAD    LOAN FROM OVERSEAS BANK   CHINA    THAILAND   EUROPE   FOREIGN STUDENT    FOR MIGRANT    FOR WOMEN   CAR FOR FOREIGNER   ELECTRIC BIKE LOAN    STUDENT LOAN REPAYMENT FROM ABROAD   LOAN FROM INDIAN OVERSEAS BANK   FOR MASTER    LOW INCOME LOAN   FOR FOREIGN STUDIES   OVERSEAS CROWDFUNDING   FOR FARMER    OVERSEAS PAYDAY LOAN   WITH NEGATIVE RATE  OVERSEAS BANK ACCOUNT   OFFSHORE BANK ACCOUNT  ANONYMOUS BANK ACCOUNT  OFFSHORE BANK ACCOUNT  ANONYMOUS BANK ACCOUNT   GERMANY LOAN   SWISS BANK ACCOUNT    LUXEMBOURG ACCOUNT   PANAMA ACCOUNT  DUBAI BANK ACCOUNT    LOAN FOR US CITIZEN  LOAN FOR BRITISH   SWITZERLAND LOAN   MORTGAGE FOR ALIEN    LOAN FOR HOUSEWIFE  FOR FOREIGNER    UK LOAN    KREDIT OHNE SCHUFA    USA LOAN    AUSTRALIA LOAN   FRANCE LOAN    BELGIUM LOAN    NO PROOF OF INCOME    WITHOUT INTEREST   START-UP LOAN   MAURITIUS    MOROCCO   NEW ZEALAND   LUXEMBOURG LOAN   MONACO LOAN   SAUDI ARABIA  QATAR    LOAN FROM GOVERNMENT    ANDORRA LOAN    FOREIGN BANK    FOREIGN INSURANCE   FOREIGN CAR INSURANCE   FOREIGN HEALTH CARE   FOR EXPATRIATE    FOR CROSS-BORDER   FOR NRI   BLACKLISTED LOAN    MOTORBIKE LEASING    LICHTENSTEIN   CANADA LOAN  WITHOUT SCHUFA   ISRAEL LOAN   ITALY MORTGAGE   DUBAI LOAN   LOAN FOR REFUGEE   LEASING FOR FOREIGNER  SPAIN  PORTUGAL   LEASING GERMANY   CORONAVIRUS LOAN