Monthly Archive: December 2019

Understand How Property Letters of Credit Work

If you are thinking of buying a property and do not have all the money to trade in sight, during your research, you may have wondered how the real estate consortium works, right?

This type of mortgage is usually very advantageous for those who want to dilute the repayment longer, because it does not have the high interest rates embedded in the installments of a loan. But do you know what the real estate letter of credit is?

It is important to understand what this means to improve planning and make a better decision about home ownership. Therefore, in this post, we will explain what is the real estate letter of credit, what its advantages and how it works in practice. Come on?


After all, what is the real estate letter of credit?

After all, what is the real estate letter of credit?

The real estate letter of credit is a document issued by the consortium administrator that has the value of the property to be purchased. With it, you can use the corresponding money as you see fit, as long as the purpose is to acquire a property, which is the object of the contract with the consortium.

All regulations regarding the real estate letter of credit are applied following the rules of the CountOn Bank, according to Law No. 11,795 / 2008, which guarantees total security for operations.


What are the advantages of real estate letter of credit?

credit loan

With the real estate letter of credit, you can buy the property in the conditions you find most appropriate. It can be new or used, apartment, house or land, and there is the possibility of acquiring the good in the city or in rural areas, for work, rent or housing. Another benefit is that the value of the property does not have to be exactly that of the letter of credit, which guarantees the buyer more freedom in negotiating with the real estate or the builder.

Another way to use the real estate letter of credit is to purchase building materials if you prefer to build the house. It is also valid for renovations and extensions and even for decoration of the property.

Finally, with the document in hand, you will be able to save on the purchase as you will have the cash amount for the payment. This offers better possibilities to get good discounts. In addition, there will be no collection of taxes such as IOF (Tax on Financial Operations), as the amount will not pass through the bank.


How does the letter of credit work in practice?

How does the letter of credit work in practice?

A letter of credit is a valuable title, a way of proving to the seller that you have that money to make the purchase. See how the purchase of property with letter of credit works:

  • the consortium administrator issues the letter of credit after contemplation with the amount corresponding to the contract, stating the period within which you have the right to use it;
  • You research the property you want to buy and then you can start the negotiation, providing for discount on payment, financing of the remaining amount (if the credit is not enough) etc .;
  • The letter of credit can also be used to pay off a previous mortgage;
  • When closing the deal, it is enough for the financial institution to issue the document.

Only? Understand what is a property letter of credit, what are the advantages of using this feature and how to do when withdrawing yours? When buying a real estate property, consider the possibility and advantages of making a consortium to have more security and peace of mind to plan this change financially.

If you know someone else who is looking for alternatives to home ownership, share this content on your social networks!

Curitiba Loan: Everything You Need To Know

One of Brazil’s most planned capital cities, Curitiba, has an extremely rich investment and credit market. See here in this text how you can enjoy the best that the city can offer in this segment.

Whether in personal loan, loan payroll or other credit, Curitiba has a broad market companies operating in the sector. However, understanding which format best fits your goal may not be an easy task.

Therefore, we decided to make it easier for you, bringing together, in this text, the forms of lending in Curitiba and the differences between traditional banks and fintechs.

Understanding this is the beginning for you to make the best choice when deciding which company to apply for credit. After all, nobody wants to have headaches right now, right?


Loan Forms in Curitiba

Loan Forms in Curitiba

Traditional Banks : In the city it is possible to make loans in traditional banks. As it is a capital city, it has a wide range of opportunities in this loan format.

However, lending rates reach up to 7.26% per month, according to Total Cost Effective Rates (CET) data – averages obtained from the Central Bank website, which can cause extremely high interest rates if you are unable to pay any of the installments. .

Financial : they are also present in Curitiba, enabling a wider range of options.

Finance companies tend to have slightly more flexible criteria compared to traditional banks, which attracts many people who may not have been able to get credit approval at larger institutions. However, as conditions are eased, it is common for interest rates to be slightly higher.

Online Loan : Another format is the online loan, which is growing and becoming stronger in the market.

This is because it has the lowest rate and, depending on the mode, offer incredible advantages for the applicant with less bureaucracy . Companies like Buzzcredi, for example, work with the secured loan (EGI) and the rates are from 0.99% per month, much lower compared to market rates.


Lending institutions in Curitiba

Lending institution

Several companies offer credit to the people of Curitiba in person and more traditionally. In most cases, banks and institutions are in the city center and serve almost the entire population.


Traditional Bank Loan vs Buzzcredi Loan

Traditional Bank Loan vs Buzzcredi Loan

It is extremely important to understand the differences between a loan with traditional banks and a loan with Buzzcredi as they are felt in your pocket while repaying installments.

If we compare the rates of the secured loan, the EGI, with the 4 types of credit offered by banks, you can see the differences:

When it comes to interest rates per month, Buzzcredi’s EGI gains skyrocketing from other products with 0.99% + IPCA versus up to 17.43% of the revolving credit card.

In addition, EGI’s annual interest rate is 14.71%, while other banks range from 41.70% to 587.65%.

We have prepared an infographic with all the differences between the EGI and the traditional banks that explains the maximum terms for each modality, the volume of credit and also provides details about interest rates.

Another difference is that with Buzzcredi, you have less bureaucracy . After credit analysis, the money falls into your account within 10 days and you can use it any way you want .


Buzzcredi in Curitiba

money loan

For those who want a loan in Curitiba, Buzzcredi may be the solution and we are closer than you think.

We are a Curitiba-based company based in the city center: we are inside Shopping Estacio, one of the city’s sights and easily accessible place.

However, to apply for a loan with us, you don’t even have to leave home. Just visit our site, run a simulation and once approved, the money falls within 10 days in your account.

You can do a loan simulation here and close the best deal for your pocket!